US remittance tax plan may hit Indian households, rupee: GTRI

A proposed 5% US tax on remittances from non-citizens is alarming India, potentially impacting households and the rupee. With India receiving $120 billion in remittances in 2023-24, a significant portion from the US, the tax could cause a $12-18 billion annual shortfall and weaken the rupee, affecting states reliant on these funds.