According to the World Bank‘s latest ‘Migration and Development Brief‘, India is expected to receive $100 billion in remittances this year — the first time a single country has reached this number.
The report noted that remittances to India, the world’s biggest recipient, stood at $89.4 billion last year and will grow at 12 per cent in 2022. Remittances are transfer of money made by individuals, largely people of Indian origin living as expatriates, immigrants, or first generation citizens. India’s disapora is over 20 million strong and many are resident in the United States, Canada, the United Kingdom, and the Gulf countries.
The report offered several reasons for the rise in remittances to India. In recent years, many Indians have moved to well-paid jobs in high-income countries, such as the U.S., UK and Singapore – enabling them to send more money home. Besides, Covid-19 vaccinations and resumption of travel helped more Indian blue-collar workers to resume work in 2022.
In total, the amount of money sent back home by migrants around the world has grown by 5% in 2022 to around $626 billion.
Globally, remittances are likely to take a hit in 2023 due to volatile oil prices and currency exchange rates, the war in Ukraine, and the economic downturn around the world.
