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Mahesh

04/12/22 15:44 PM IST

Remittance inflows in India to top $100 billion in 2022: World Bank brief

In News
  • Remittance inflow in India in 2022 is expected to top the $100 billion mark for the first time ever.
Major Highlights
  • India’s remittance will grow 12% resulting in a $100 billion flow ($89.4 billion in 2021), mainly attributed to the Indian migrants earning relatively high salaries in the US, UK and East Asia.
  • Despite reaching a historic milestone, India’s remittance flows are expected to account for only 3% of its GDP in 2022.
Remittances
  • Remittances to India are money transfers from non-resident Indians (NRIs) employed outside the country to family, friends or relatives residing in India and are a vital source of household income.
  • As per the Ministry of External Affairs (MEA), remittance is received from the approximately 35 million members of the Indian diaspora.
Reason behind high remittance
  • A gradual shift in destinations for Indian migrants → A structural shift in qualifications → moving to highest-income-earner-category.
  • For example, migrants moved from informal employment in the Gulf Cooperation Council (GCC) countries to high-income countries – the US, UK and East Asia (Singapore, Japan, Australia, New Zealand).
  • A strong labour market in the US and other OECD countries.
  • In the GCC, low inflation, and high labour demand with higher oil prices, which in turn increased remittances for Indian labourers.
Source- Business Standard

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