Remittances to India – 2022
Context:
- According to the World Bank’s most recent Migration and Development Brief, “Remittances Brave Global Headwinds,” remittances to India are expected to reach a record $100 billion in 2022.
- India received $89.4 billion in 2021, becoming the first nation to cross the $100 billion threshold.
What is the Status?
- It is anticipated that global remittances will reach $794 billion in 2022, up from $781 billion in 2021.
- Compared to the 10.2% growth in 2021, which was the greatest since 2010, this growth reflects an increase of 4.9%. $626 billion of the $794 billion goes to low- and middle-income nations (LMICs).
- Compared to portfolio investment flows, official development aid (ODA), and foreign direct investment (FDI), remittances constitute an even bigger source of external financing for LMICs in 2022.
Top five recipients this year:
- India ($100 billion),
- Mexico ($60 billion),
- China ($50 billion),
- Philippines ($38 billion), and
- Egypt ($32 billion)
Background:
- The top destination nations for remittances as well as the types of employment held by migrants hint to a structural change in India’s remittance economy, according to the report.
- It states that “remittances have benefited from a gradual structural shift in Indian migrants’ key destinations from a dominant share of high-skilled jobs in high-income countries like the U.S., the U.K., and East Asia (Singapore, Japan, Australia, and New Zealand) from largely low-skilled, informal employment in the Gulf Cooperation Council (GCC) countries.”
- In reality, whereas remittances from the United States, the United Kingdom, and Singapore climbed from 26% to 36% between 2016–17 and 2020–21, the share from the five GCC nations decreased from 54% to 28%.
Source The Hindu
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