According to the world bank, India is the world’s largest recipient of remittances and will receive 87 billion united states dollars in 2021, with the united states being the most significant source accounting for more than 20 of these funds. China, Mexico, the Philippines, and Egypt follow India. According to a report released by the Washington-based global lender, India received over 83 billion united states dollars in remittances in 2020. So what exactly is a remittance? A remittance is a money sent by a foreign worker to a person in their home country.
Remittances are vital to the economies of many developing countries, including the Philippines. Nepal and Bangladesh. Remittances to India are expected to increase by 3 in 2022 to 89.6 billion united states dollars, reflecting a drop in overall migrant stock, as many returnees from Arab countries await the return. There are two types of remittances, inward remittance and outward remittance.
Inward remittances are funds sent from Indian ex-pats living abroad to family and friends in India. Over the last three years, India has seen a significant increase in the flow of remittances and outward remittances of funds sent overseas by Indian residents for specific purposes. Increased inward remittances are beneficial to the economy at both the macro and micro levels and help to keep foreign reserves stable at the macro level, and also help the Indian rupee maintain its value against the US dollar and contribute significantly to GDP on a micro level. Remittances have positively impacted recipient families, health care, entrepreneurship, education, and overall economic development flows to India. The world’s largest recipient of remittances is expected to reach 87 billion united states dollars.
4 Percent increase with the severity of covid 19 caseloads and deaths during the second quarter well above the global average, playing a prominent role in attracting altruistic flows, including for the purchase of oxygen tanks. World bank reported, according to the bank, remittances to low and middle-income countries are expected to grow by 7.3 to 589 billion united states dollars in 2021. According to estimates from the world bank’s migration and development brief, this recovery is more robust than previously estimated. It follows the resilience of flows in 2020 when remittances fell by only 1.7 percent.
Despite a severe global recession caused by covid, 19 Migrant remittances have significantly supplemented government cash transfer programs to assist families experiencing economic hardship during the covid19 crisis. Facilitating the flow of remittances to relieve pressure on strained household budgets should be a key component of government policies to support a global recovery from the pandemic. According to Mitchell Rutkowski, world bank’s global director for social protection and jobs,
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