- Tuesday, April 29, 2025
By: Shubham Ghosh
A report from the World Bank has said that Indians are set to receive a whopping $100 billion (£81.4 billion) in remittances in 2022, marking the first time a single nation has achieved such a number.
The rise was caused by increase in wages and robust labour markets in the US and other developed nations, the BBC reported.
It was also said that the amount of money sent by migrants back home around the world this year has gone up by five per cent.
According to the World Bank, the money is an important source of household income in low and middle-income nations.
Remittances are associated with better health and social indicators, like for example, higher birth weight and school enrolment figures.
Other countries that have done well in terms of remittances are Mexico, China, Egypt, and the Philippines, the report added.
Many Indians have in recent times moved to well-paid jobs in high-income nations, such as the US, UK and Singapore which has enabled them to send more money home.
The payments account for nearly three per cent of India’s gross domestic product.
However, while India and Nepal have seen a rise in remittances, there are countries in South Asia have witnessed a decline of more than 10 per cent in the last year owing to an end of government incentives that were started during the Covid-19 pandemic.
“Remittances to South Asia grew an estimated 3.5% to $163 billion in 2022, but there is large disparity across countries, from India’s projected 12% gain—which is on track to reach $100 billion in receipts for the year–to Nepal’s 4% increase, to an aggregate decline of 10% for the region’s remaining countries,” the World Bank report, which was released on Wednesday (30), said.
In all, the remittances to low and middle-income countries have grown in 2022 to around $626 billion (£510bn) — but around half the rate of growth seen in 2021.
It is likely to be more challenging in 2023 owing to rising prices and slower economic growth globally.
