India received a phenomenal $87 billion in remittances from abroad in 2021 to top the World Bank list in which China was ranked second followed by Mexico, the Philippines, and Egypt. According to the World Bank, the US remained India’s biggest source of inward remittance, accounting for over 20 per cent of the total inflow.
The report also said that remittances to South Asia are likely to remain robust at 8 per cent to $159 billion in 2021. Higher oil prices aided economic recovery and drove the spike in remittances from the Gulf countries which employ over half of South Asia’s migrants, the World Bank said.
However, it may be noted that remittance inflow into countries such as Nepal and Bangladesh have been slowing leading to concerns.
According to Kathmandu Post, Nepal’s remittance inflow declined by 7.6 per cent to Rs 239.32 billion between mid-August and mid-October even as the number of Nepalese getting approval for employment outside the country increased.
A chunk of remittances also flows into the South Asian markets through informal channels.
Meanwhile, remittances to low- and middle-income countries are projected to grow at 7.3 per cent to touch $589 billion in 2021, the bank said.
A resurgence of Covid 19 cases and reimposition of mobility restrictions pose the biggest downside risk to the outlook for global growth, employment and remittance flows to developing countries. “The rollback of fiscal stimulus and employment-support programs, as economies recover, may also dampen remittance flows,” it said in a statement.