As per World Bank reports, India has retained its position as the world’s top recipient of remittances in 2018.
Remittances means the money sent back home by the country’s nationals working abroad.
As per reports, Indian abroad had sent $79 billion (approximately Rs 5.5 lakh crore) home in 2018.
“Remittances grew by more than 14% in India, where a flooding disaster in Kerala likely boosted the financial help that migrants sent to families,” the global lender said. Over the last three years, India has registered a noteworthy flow of remittances from USD 62.7 billion in 2016 to USD 65.3 billion 2017.
The other countries in the ranking order are –
China at second spot ($67 billion)
Mexico at third ($36 billion)
Philippines (USD 34 billion)
Egypt (USD 29 billion).
According to the report, global remittances reached $689 billion in 2018, up from $633 billion in 2017.
Also Read: 2019 Lok Sabha polls: Here’s all you need to know about…
The report also states, “The upsurge was driven by stronger economic conditions in the United States and a pick-up in oil prices, which had a positive impact on outward remittances from some GCC [Gulf Cooperation Council] countries.” The countries included in GCC are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
The United Nations had in 2015 said that it wants to reduce the cost of remittances to 3%. However, banks on average were charging 11% in the first quarter of 2019 while post offices charged 7%. “The high costs of money transfers reduce the benefits of migration,” said Dilip Ratha, the report’s lead author. “Renegotiating exclusive partnerships and letting new players operate through national post offices, banks and telecommunications companies will increase competition and lower remittance prices.”