According to the World Bank’s latest Migration and Development Brief
titled, "Remittances Brave Global Headwinds", remittances to India
are set to touch a record $100 billion in 2022.
Key Highlights
World remittances are expected to touch $794 billion in 2022, up
from $781 billion in 2021. A growth of 4.9%, compared to 10.2% in 2021,
which was the highest since 2010.
Of the $794 billion, $626 billion went to low- and middle-income
countries (LMICs).
India ($ 100 billion), Mexico, China, Philippines and Egypt are expected
to be the top five recipients. India received $89.4 billion in 2021 — this
is the first time a country will reach the $100 billion mark.
Causes of Increased Remittance to India
Gradual reopening of various sectors in host-country economies.
A structural shift in India’s remittance economy in the last few years.
Top destination countries are the U.S., U.K. and East Asia
replacing the Gulf Cooperation Council (GCC) countries.
In 2020-21, the U.S. (23% remittance share) surpassed Saudi
Arabia to become India’s top source country for remittances.
Nature of the jobs shifted from low skilled informal employment
to high-skilled jobs.
From 2016-17 to 2020-21, remittances from the U.S., U.K. and
Singapore increased from 26% to 36%; the share from five GCC
countries dropped from 54% to 28%.
Future Trends
Growth in remittances will fall to 2% in 2023 as the GDP of rich
economies slows down.
Growth is expected at 0.7% for South Asia in 2023, (3.5% in 2022).
Remittances to India will grow by 4% due to the large share of
remittance from high income countries like the US and the UK.
