Vol. 10, Issue 10, Part C (2024)

This paper assesses the effect of the COVID-19 pandemic on remittance inflows to India. The flow of remittances has been markedly diminished due to this outbreak. Situational research was done to assess the short-, medium-, and long-term impacts of COVID-19 on the Indian economy, using remittance data from 2019 to 2020. This data was used to analyse the remittance influx. Currently, the nations that provide financial aid are all closed, resulting in widespread unemployment. Our study indicates that COVID-19 adversely impacted GDP, FDI, and unemployment via its influence on remittance influx. Emerging countries are particularly affected, since this tendency is most evident in the primary and manufacturing sectors, which receive the majority of foreign direct investment.

Foreign direct investment (FDI), a crucial element in economic growth, may assist countries in enduring challenges and emerging more robustly than before. Approximately 75% of foreign direct investment (FDI) inflows to the country from October 2019 to June 2020 were concentrated in four Indian states: Maharashtra (28%), Karnataka (19%), Delhi (16%), and Gujarat (10%). This underscores prospective prospects for additional Indian states in the future. Over the last 19 years, low-skilled manufacturing has garnered just 11% of total foreign direct investment (FDI), despite India's significant potential to attract substantial FDI in this sector.