India, world’s largest recipient of remittances: World Bank

Current Affairs

India received $87 billion in 2021 to become the largest recipient of remittances as per World Bank’s Migration and Development Brief.  

  • India had received over $ 83 billion in remittances in 2020.
  • The United States is the biggest source, accounting for over 20% of these funds.
  • India is followed by China, Mexico, the Philippines, and Egypt, the Washington-based global lender said in its report released on Wednesday.
  • Remittances to low- and middle-income countries are projected to have grown a strong 7.3 per cent to reach $589 billion in 2021, the bank said.
  • Projection for 2022: In India, remittances are projected to grow three per cent in 2022 to $ 89.6 billion, reflecting a drop in overall migrant stock, as a large proportion of returnees from the Arab countries await return.

Reasons for the increase in Remittances

  • Migrants determination to support their families in times of need, 
  • Stronger oil prices and the resulting pickup in economic activity in Gulf, 
  • Severity of caseloads and deaths during the second wave of pandemic played a prominent role in drawing substantial flows (including for the purchase of oxygen tanks) to the country.

World Bank’s Migration and Development Brief

The brief aims to provide an update on key developments in the area of migration and remittance flows and related policies over the past six months. It also provides medium-term projections of remittance flows to developing countries.

The brief is produced twice a year. This is prepared by the Migration and Remittances Unit, Development Economics (DEC) – the premier research and data arm of the World Bank.

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SOURCE: https://indianexpress.com/article/india/india-received-usd87-billion-in-remittances-in-2021-7628639/ , https://www.worldbank.org/en/topic/socialprotectionandjobs/publication/migration-and-development-brief-33

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