• UGI USER
  • Dec 18, 2023
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India largest recipient of remittances

News

  • Remittances to India ranked highest in the world in 2023, with an estimated 125 billion dollars, according to the World Bank’s most recent Migration and Development Report.
  • The overall positive trend was bolstered by a notable growth in remittance flows to India from the South Asian region. In 2023, South Asia as a whole will see a 7.2 percent increase in remittances.
  • The top five recipients of remittances: Mexico (67 billion dollars), China (50 billion dollars), the Philippines (40 billion dollars), and Egypt (24 billion dollars).
  • Remittances to India totaled 125 billion dollars this year, exceeding forecasts due to the country’s strong employment growth in Europe and a competitive labor market in the United States.
  • The report draws attention to the changing dynamics in the remittance landscape while highlighting India’s noteworthy position as the top recipient of remittances.
Remittances

●   A financial payment made to a different party is called a remittance. Remittances are generally used to describe any payment made in relation to an invoice or bill.

●   But these days, the phrase is most frequently used to describe a payment made to a family back home by an individual employed overseas.

●   For those living in low-income and developing nations, remittances are one of the most significant sources of income; they frequently surpass both foreign development assistance and direct investment.

●   Two types:

○   Inward remittances: They are funds sent from outside the country to India. These transfers are usually made on a personal basis in order to provide for a family. For instance, sending money to your parents in India as an NRI living in the United States is regarded as an inward remittance.

○   Outward remittances: They are funds sent from India to countries other than India. An example of an outward remittance is sending money to your children who are studying in the United States from India.