The World Bank has said in its Migration and Development Brief Report that India’s remittances will increase by 12 percent from 7.5 percent last year, due to which it will reach $ 100 billion in 2021 as compared to $ 89.4 billion.
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World Bank Report: In the year 2022, NRIs (NRIs) can send $ 100 billion to their loved ones living in India. This figure is the total wealth of Mukesh Ambani. (Mukesh Ambani Net Worth) Which is more than 96 billion dollars at present. a report from the world bank (World Bank Report) India is expected to receive a record $100 billion in inflows from NRIs in 2022. Remittance in technical language (Remittance) is called.
The World Bank has said in its Migration and Development Brief Report that India’s remittances will increase by 12 percent from 7.5 percent last year, due to which it will reach $ 100 billion in 2021 as compared to $ 89.4 billion.
The biggest reason for which is being attributed to the large section of Indian migrants who are taking high salaries in the United States, United Kingdom and East Asia. The report states that India’s remittance flow is expected to be only 3 per cent of its GDP in 2022, despite reaching the historic milestone of $100 billion and being at the top in terms of remittances globally.
The World Bank has predicted that remittance flows to South Asia will increase by 3.5 percent this year to reach $163 billion in 2022. However, this is less than the 6.7 percent profit of 2021. This increase of 12 percent can be seen in India and an increase of 4 percent is expected in Nepal. In other countries, a decline of 10 percent can be seen. The report also states that despite global challenges, in 2022, remittances to low- and middle-income countries will increase by 5 percent to $626 billion.
Key points of the World Bank report
- The highly skilled Indian diaspora living in wealthier countries like the US, UK and Singapore is sending more money home.
- Remittances to low- and middle-income countries are projected to increase by 5 percent to about $626 billion in 2022.
- In 2022, there has been a 5 percent increase in the money sent back home by migrants around the world.
- Other top recipient countries for remittances include Mexico, China, Egypt and the Philippines.
- Domestic and international shocks have affected countries such as Pakistan, Bangladesh and Sri Lanka, for which remittances earned by migrants are expected to decline this year.
- Barring India and Nepal, other South Asian countries saw a decline of more than 10 per cent in their remittances from 2021.
What does $100 billion in remittances mean for India’s economy?
In recent years, many Indians have taken up well-paying jobs in high-income countries such as the US, UK and Singapore. Remittance is about 3 percent of India’s gross domestic product (GDP). These are also important to fill the financial gap.
A major source of cash for India is maintained by the inflow of money from Indians abroad. The World Bank report comes at a time when India has lost foreign exchange reserves of around $100 billion in the last one year.
Cash transfers to India from high-income countries increased to over 36 per cent in 2020-21 from 26 per cent in 2016-17. Citing data from the Reserve Bank of India, the World Bank said the share of five Gulf countries, including Saudi Arabia and the United Arab Emirates, declined from 54 per cent to 28 per cent during the same period.
Why are remittances in India so high?
According to the World Bank, there has been a “gradual shift in destinations” for Indian migrants with the help of “structural changes in qualifications”, which have helped them move into the “high income earner category”. According to the report, many non-resident Indians have turned to such countries, where the salary is more. Which includes United States, United Kingdom and East Asia (Singapore, Singapore Japan, Australia, New Zealand).
The report states that Indian expatriates in high-income countries benefited from work-from-home and large fiscal stimulus packages during the COVID-19 pandemic. The report said that as the pandemic subsided, an increase in salaries helped migrants send money home despite inflation. At the same time, the resumption of vaccination and travel in the year 2022 helped the migrants to resume work, due to which there has been an increase in remittances in the country.
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