2021, Vol. 3, Issue 2, Part C

This paper assesses the effect of COVID-19 pandemic on the inflow of remittance in India. This pandemic has effectively been declined remittance inflow. Situation investigation is determined on remittance of 2019-20 to address the inflow of remittance for assessing the effect of COVID-19 on the economy of India for short, medium, and long period. At present, the remitter nations are locked down, made individuals jobless. This examination demonstrates the adverse consequence of COVID-19 on remittance inflow, precisely on GDP, FDI, and Unemployment. The developing countries are hit even worse because the sectors attracting the largest shares of FDI such as primary and manufacturing sectors are hit the worst. FDI being a critical driver of the economic growth could play an important role in supporting the economies during and after the crisis.

Four Indian states- Maharashtra (28%), Karnataka (19%), Delhi (16%) and Gujarat (10%) - attracted around 3/4th of the FDI inflows in the country (from October 2019 to June 2020), highlighting areas of opportunity going forward for the rest of the Indian states • Only 11% of total FDI in the last 19 years was in low skill manufacturing, highlighting the potential for India to attract large FDI in low-skilled manufacturing sector.