India is the largest recipient of remittance in 2023 at $125 bn: World Bank report

India is the largest recipient of remittance in 2023 at $125 bn: World Bank report

India topped the list of countries in terms of receiving the highest remittance around $125 bn in 2023 according to the World Bank report. India again retained its position on the top by becoming the largest recipient of remittance around the world.

The World Bank’s latest Migration and Development Brief stated that the pace of remittance flow in low and middle income countries is slow but continuous growth can be seen in the remittance flow of these countries. This is a positive statement from the World Bank.

India has shown continuous growth in remittance flow and proved its dynamic evaluation in this field. India has emerged as the superpower of attracting remittance from countries around the world.

More findings of the report:

According to the World Bank report,  there is an estimated 3.8% growth with the total amount of USD 669 billion that can be seen in low and middle income countries in 2023. One of the major contributors to the growth of remittance flow is resilient labor markets especially in developed economies and Gulf Cooperation Council countries. This made it easier for migrant people staying in these countries to send money to their homes.

The report also suggested that there will be a downward pace of real income of migrants around the world in 2024 and this will happen due to global inflation and a slower growth prospect.

If we talk about South Asia, it witnessed around 7.2% increase in the growth of remittance flow while India contributed notable remittance recipients.

The World Bank’s Remittances Prices Worldwide Database also reported that the remittance cost is still on a higher side on an average 6.2% while sending USD 200. It further said that Banks are the most costly channels for migrants to remit money with an average cost of around 12.1%.

India’s performance:

According to a World Bank report, India’s performance in remittance flow is more than what was expected. India’s remittance recipients have crossed a notable mark and reached USD 125 billion and this could be possible due to a robust labor market in the United States of America and strong employment growth in Europe.

Some potential challenges:

Amid these positive remarks there are some potential challenges in front of the world. According to the report North Africa and Middle East have seen a slow growth decrease by 1.4% from the last year in remittance flow for the second time.

Top 5 remittance recipients countries:

1. India- USD125 billion
2. Mexico- USD 67 billion
3. China- USD 50 billion
4. The Philippines- USD 40 billion
5. Egypt- USD 24 billion

About World Bank:

The World Bank, established in 1944, is a vital international financial institution with a mission to alleviate poverty and support sustainable economic development around the globe. It comprises two institutions – the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

Headquarter: Washington DC United States

Member countries: 189

Conclusion:

India received a significant amount of remittance inflow, primarily from its diaspora working abroad. Remittances contribute substantially to India’s economy, supporting families, and fostering economic stability. India needs to be ready to face challenges and maintain its position on top.

Important Questions:

1. What is India’s position in remittance flow around the world?
2. Which are the top five countries in terms of remittance recipients?

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