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9th December 2022 (8 Topics)

The sustained growth in remittances


The World Bank’s latest Migration and Development Brief titled, ‘Remittances Brave Global Headwinds’ has said that the remittances to India are set to touch a record $100 billion in 2022.

General trend this year

  • World Remittances: World remittances are expected to touch $794 billion in 2022, of which $626 billion went alone to low­ and middle-income countries (LMICs).
  • Top Five Recipients-2022: The top five expected recipients are India ($100 billion), followed by Mexico ($60 billion), China ($50 billion), the Philippines ($38 billion), and Egypt ($32 billion).

Reasons Behind inward remittances flows:

  • Structural Shift in Remittance Economy: Noticeable structural shift in India’s remittance economy is evident in both, top destination countries & the nature of the jobs held by migrants.
  • Low-skilled to High-skilled Jobs: We are moving from largely low-skilled, informal employment in the Gulf countries to high-skilled jobs in high-income countries such as the U.S. and the U.K.
  • Advantage of Rupee depreciation: The depreciation of the Indian rupee vis-à-vis the U.S. dollar may have also given an advantage to Indian migrants.
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