India to receive remittances of $100 billion : World Bank

India to receive remittances of $100 billion: World Bank

As per World Bank-” Remittances are a vital source of household income for LMICs. They alleviate poverty, improve nutritional outcomes, and are associated with increased birth weight and higher school enrollment rates for children in disadvantaged households. Studies show that remittances help recipient households to build resilience, for example through financing better housing and to cope with the losses in the aftermath of disasters.”

Remittances to low- and middle-income countries (LMICs) withstood global headwinds in 2022, growing an estimated 5% to $626 billion. This is sharply lower than the 10.2% increase in 2021, according to the latest World Bank Migration and Development Brief.

Remittances to South Asia grew an estimated 3.5% to $163 billion in 2022, but there is a large disparity across countries, from India’s projected 12% gain—which is on track to reach $100 billion in receipts for the year–to Nepal’s 4% increase, to an aggregate decline of 10% for the region’s remaining countries. The easing of flows reflects the discontinuation of special incentives some governments had introduced to attract flows during the pandemic, as well as preferences for informal channels offering better exchange rates. Remittances to India were enhanced by wage hikes and a strong labor market in the United States and other OECD countries. In the Gulf Cooperation Council destination countries, governments ensured low inflation through direct support measures that protected migrants’ ability to remit. Sending $200 to the region cost 4.1% on average in the second quarter of 2022, down from 4.3% a year ago.–said to India to receive remittances of $100 billion: World Bank the report published by the World Bank.

Also as per the reports by World Bank, “Highly-skilled Indian migrants living in wealthy nations such as the US, the UK, and Singapore were sending more money home, the report said. Over the years, Indians have moved away from doing lower-paid work in places like the Gulf. Wage hikes, record-high employment, and a weaken­ing rupee also supported growth.”

 

 

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