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India highest recipient of remittances: World Bank
Why is it in the news
- As per the World Bank report, India retained its position as the world’s top recipient of remittances with its diaspora sending the highest $79 billion back home in 2018.
- India was followed by China (USD 67 billion), Mexico (USD 36 billion), the Philippines (USD 34 billion), and Egypt (USD 29 billion).
More in the news
- Over the last three years, India has registered a significant flow of remittances from $62.7 billion in 2016 to $65.3 billion 2017.
- Remittances grew by more than 14% in India.
- Remittances to low-and middle-income countries reached a record high of $529 billion in 2018.
- Remittances to South Asia grew 12% to $131 billion in 2018, outpacing the 6% growth in 2017.
- Reducing remittance costs to 3% by 2030 is a global target under Sustainable Development Goal (SDG) 10.7.
Remittances and India
- Remittances essentially represent household income from foreign economies arising mainly from the temporary or permanent movement of workers to source economies.
- Remittances are mainly derived from two items in the balance of payments framework:(1) Income earned by workers in economies where they are not resident (or from non-resident employers) and(2) Transfers from residents of one economy to residents of another.
- India is the largest remittances receiving country in the world ($ 79 billion in 2018 ) followed by China ($ 67 billion) and the Mexico ($ 36 billion).
- Indian citizens working in other countries send money back to the relatives in India.
- This remittances is the second largest item in the country’s invisible account.
Source
The Hindu.