India Again Topped The List Of Recipients Of Remittances Globally

India has again topped the list of recipients of remittances globally in 2023. According to the World Bank's latest Migration and Development Brief with an anticipated surge of over 11 percent, India received $125 billion.

India Again Topped The List Of Recipients Of Remittances Globally [Credit-The Times of India]

This growth solidifies India's position. It takes ahead of countries like China and Mexico. The report by Moneycontrol underscored the importance of remittances to the Indian economy. It is helping in offsetting the impact of declining foreign direct investment and higher trade deficits.

World Bank Listed India Again on Top:

According to the World Bank's Migration and Development Report 2023, India has received more than double China's remittances globally. China received $50 billion with a third position. Mexico listed 2nd with a $67 billion.

The World Bank highlighted a global growth of approximately 3.8 % in remittances in 2023, a total of $669 billion. The resilient labor markets like advanced economies and Gulf Cooperation Council [GCC] countries contribute the maximum to send money back home.

However, the World Bank expressed concern about the decline in real income for migrants in 2024 due to the backdrop of global inflation and low growth prospects.

This year, India's remittances would be double that of China. In 2022 too, Indian remittances [$111 Billion] were more than double China's $51 billion.

World Bank Listed India Again on Top [Credit-Prepp]

Data from the World Bank shows that in 2023, Mexico will emerge as the second after India with an inflow of $67 billion. China will follow with $50 billion, the Philippines with $40 billion, and Egypt with $24 billion. Egypt has replaced the Pakistan from its 5th position.

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India's Enhanced Steps To Attract More Remittances:

According to economic analysts, remittances can play a critical role in improving a country's ability to repay debt. They may even serve as collateral to lower the costs of international borrowing for national banks in developing economies.

The 'digitalization' process, especially through UPI payments, in India has facilitated higher remittance inflows into India according to reports. The report stated,

"Mobile phones and digitalization have revolutionized India's fintech ecosystem,...........positive spillovers for Indian migrants...........remit funds to India."

The report further added the government's initiatives such as the launch of Unified Payments Interface [UPI-PayNow] linkage for cross-border remittances between India and Singapore in February 2023.

It is being extended to other countries to reduce transaction costs and facilitate higher remittance flows. India's remittances are expected to touch $135 billion in 2024 because of unemployment rates edging up marginally in the US and the UK.

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Remittance Growth in South Asia and Other Regions:

In terms of regional remittance growth, Latin America and the Caribbean saw the highest growth of remittances at 8% followed by South Asia with 7.2%.

According to the World Bank's report, remittance flows to South Asia were estimated to reach $189 billion this year and its growth is attributable entirely to remittance flows to India.

Remittance Growth in South Asia and Other Regions [Credit-The Hindu]

The report further said this regional average growth was the outcome of high growth in one-half of the South Asian nations like India, Bangladesh, Nepal, and Sri Lanka and declines in the other half countries Afghanistan, Bhutan, Maldives, and Pakistan.

As of September 2023 data, non-resident Indians deposited an amount of %143 billion, an increase of over $10 billion year-on-year. Many countries like India have set up saving programs to attract foreign currency deposits from their non-resident citizens. 

These sets usually come with incentives like being repatriable, yielding higher interest rates, and tax exemptions. This comes despite a slew of new migration measures from Western countries, like the UK's restrictions on overseas workers, and Australia's new rules for additional security.

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