India got the highest remittances again, at USD 87 billion

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India retained the top spot in inward dollar remittances

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India got the highest remittances again, at USD 87 billion

Read more on - Polity | Economy | Schemes | S&T | Environment

  • The story: As per the World Bank, India, the world's largest recipient of remittances, received USD 87 billion in 2021. The United States was the biggest source, providing 20 per cent of these funds. India is followed by China, Mexico, the Philippines, and Egypt.
  • The scneario: In India, remittances are projected to grow three per cent in 2022 to USD 89.6 billion, reflecting a drop in overall migrant stock, as a large proportion of returnees from the Arab countries await return.
  1. The severity of COVID-19 caseloads and deaths during the second quarter (well above the global average) played a big role in drawing altruistic flows (including for the purchase of oxygen tanks) to the country.
  2. Remittances to low- and middle-income countries are projected to have grown a strong 7.3 per cent to reach USD 589 billion in 2021.
  3. This return to growth is more robust than earlier estimates and follows the resilience of flows in 2020 when remittances declined by only 1.7 per cent despite a severe global recession due to COVID-19. All this came from the World Bank's Migration and Development Brief.
  4. Remittance flows from migrants have greatly complemented government cash transfer programs to support families suffering economic hardships during the COVID-19 crisis.
  • What governments should do: Facilitating the flow of remittances to provide relief to strained household budgets should be a key component of government policies to support a global recovery from the pandemic.
  • EXAM QUESTIONS: (1) Explain the reasons for the huge inward dollar remittances that India regularly gets from abroad. (2) What are the pros and cons of the huge inward remittances that India gets? Analyse.
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                    PT's IAS Academy: India got the highest remittances again, at USD 87 billion
                    India got the highest remittances again, at USD 87 billion
                    India retained the top spot in inward dollar remittances
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                    PT's IAS Academy
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                    https://civils.pteducation.com/2021/11/India-retained-the-top-spot-in-inward-dollar-remittances-Prelims-UPSCMainsGSI-UPSCMainsGSII-IndianEconomy-WorldEconomy-IndicesandStatistics-UN-Reports.html
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