According to the World Bank‘s latest Migration and Development Brief, India saw the highest amount of remittance inflows in the world in 2023 at $125 billion. This was driven by several factors:
Firstly, declining inflation and strong labor markets in high-income source countries such as the U.S., UK and Singapore boosted remittances from highly skilled Indians. These three countries account for 36% of total remittances to India.
Secondly, flows from Gulf Cooperation Council (GCC) countries, especially the UAE which accounts for 18% of remittances, were higher.
Thirdly, India’s agreement with the UAE in February 2023 to promote use of local currencies for cross-border transactions helped channel more remittances through formal channels.
The World Bank expects remittance growth in India to halve from the historic 24.4% in 2022 to 12.4% in 2023. But remittances will still increase by $14 billion in 2023. India’s share of remittances in South Asia will rise to 66% in 2023 from 63% in 2022.
After India, the largest remittance recipients were Mexico ($67 billion), China ($50 billion), the Philippines ($40 billion) and Egypt ($24 billion).
