The vast Indian diaspora will send home more than $100 billion in yearly remittances in 2022, says a World Bank report published on Wednesday. Asia’s third largest economy will reach the milestone figure for the first time, the report added.
Remittances are money transfers from migrant workers to families back home. These money transfers are an important source of income for households and help in reducing poverty and driving healthy social indicators such as higher school enrollment rates for children.
The World Bank report noted that over the last few years, Indians have moved from low-skilled employment in the Gulf countries to high-skilled jobs in high-income countries, and are able to send more money back home.
In 2021, the country received $89.4 billion in remittances, becoming its top recipient globally. Regardless of the anticipated new record this year, India’s remittance flows are likely to account for only 3% of its GDP, underlined the bank.
In addition to India, the other likely top recipients for remittances in 2022 are Mexico, China, and the Philippines. Globally, remittances to low and middle income nations are expected to grow an estimated 5% to $626 billion this year, added the World Bank.