From UPSC perspective, the following things are important :
Prelims level : Migration and Development Brief by WB
Mains level : Contribution of remittances to Indian Economy
- India retained its position as the world’s top recipient of remittances with its diaspora sending a whopping $79 billion back home in 2018 a/c to the World Bank.
- A remittance is a transfer of money by a foreign worker to an individual in his or her home country.
- Money sent home by migrants competes with international aid as one of the largest financial inflows to developing countries.
- Workers’ remittances are a significant part of international capital flows, especially with regard to labour-exporting countries.
Highlights of the World Bank’s Migration and Development Brief
- Remittances grew by more than 14% in India, where a flooding disaster in Kerala likely boosted the financial help that migrants sent to families.
- India was followed by China (USD 67 billion), Mexico (USD 36 billion), the Philippines (USD 34 billion), and Egypt (USD 29 billion), the global lender said.
- Over the last three years, India has registered a significant flow of remittances from $62.7 billion in 2016 to $65.3 billion 2017.
- In Pakistan, remittance growth was moderate (7%), due to significant declines in inflows from Saudi Arabia, its largest remittance source.
What caused global upsurge?
- Global remittances, which include flows to high-income countries, reached $689 billion in 2018, up from $633 billion in 2017.
- The upsurge was driven by stronger economic conditions in the US and a pick-up in oil prices, which had a positive impact on outward remittances from some GCC countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE).