Sign In
Learn bits
Index & Reports
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

More Related Current Affairs View All

31 Jan

Controlled cannabis cultivation

'Recently, the  Himachal Pradesh Cabinet approved a pilot study by two universities on the controlled cultivation of cannabis for medicinal and industrial purposes.' The

Read More

30 Jan

Isro’s 100th launch

'With the first launch of 2025, the Indian Space Research Organisation achieved the significant milestone of having carried out 100 launches.' The GSLV-F15 put in orbit the navi

Read More

29 Jan

Classifying denotified tribes

'The Anthropological Survey of India (AnSI) and Tribal Research Institutes (TRI) across the country have for the first time comprehensively categorised 268 denotified, semi-nomadic

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps