India highest recipient of remittances in 2018: World Bank

Mains Paper 2 : Indian Diaspora |

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Migration and Development Brief by WB

Mains level : Contribution of remittances to Indian Economy


News

  • 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.

Foreign remittance

  1. A remittance is a transfer of money by a foreign worker to an individual in his or her home country.
  2. Money sent home by migrants competes with international aid as one of the largest financial inflows to developing countries.
  3. 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).
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