India received $87 billion in remittances in 2021

• According to the world bank, India is the world's largest recipient of remittances.
• India received $87 billion in remittances in 2021, and the United States was the biggest source, accounting for over 20 percent of these funds.
• India is followed by China, Mexico, the Philippines, and Egypt.

World Bank latest report on remittances

• The World Bank report stated that the flows to India (the world’s largest recipient of remittances) are expected to reach USD 87 billion, a gain of 4.6 per cent .
• With the severity of COVID-19 caseloads and deaths during the second quarter (well above the global average) playing a prominent role in drawing altruistic flows (including for the purchase of oxygen tanks) to the country.
• In India, remittances are projected to grow three per cent in 2022 to USD 89.6 billion.
• It reflected a drop in overall migrant stock, as a large proportion of returnees from the Arab countries await return.
• Remittances to low and middle income countries are projected to have grown a strong 7.3 per cent to reach USD 589 billion in 2021.
• According to the estimates from the World Bank’s Migration and Development Brief, the remittances declined by only 1.7 per cent despite a severe global recession due to COVID-19.
• Remittance flows from migrants have greatly complemented government cash transfer programs to support families suffering economic hardships during the COVID-19 crisis.
• India had received over USD 83 billion in remittances in 2020.
• For a second consecutive year, remittance flows to low- and middle-income countries (excluding China) are expected to surpass the sum of foreign direct investment (FDI) and overseas development assistance (ODA).
• Factors contributing to the strong growth in remittance are migrants’ determination to support their families in times of need, aided by economic recovery in Europe and the United States which in turn was supported by the fiscal stimulus and employment support programs.
• In the Gulf Cooperation Council (GCC) countries and Russia, the recovery of outward remittances was also facilitated by stronger oil prices and the resulting pickup in economic activity.
• According to the World Bank’s Remittance Prices Worldwide Database, the cost of sending $200 across international borders continued to be too high, averaging 6.4 percent of the amount transferred in the first quarter of 2021.

Remittances registered strong growth in most regions:

• Flows increased by 21.6 percent in Latin America and the Caribbean.
• 9.7 percent in the Middle East and North Africa.
• 8 percent in South Asia.
• 6.2 percent in Sub-Saharan Africa, and
• 5.3 percent in Europe and Central Asia.

What is Remittance?

• It refers to money that is sent or transferred to another party, usually overseas. It can be sent via a wire transfer, electronic payment system, mail, draft, or cheque.
• It can be used for any type of payment including invoices for business purposes or other obligations like personal transfers made to family and friends.

Migration

• It is an event in which people move from one geographical area to another geographical area.
• It is the process of changing one’s place of residence and permanently living in a region or country.

Types of Migration

• Immigration and Emigration: People from one country move permanently to another country.
• In-migration and Out-migration: In-migration occurrs within an area only, while out-migration means migration out of the area. Both types of migration are called internal migration occurring within the country.