India Leads World Bank's Global Remittance Charts For 2023

Utkarsh Classes Last Updated 19-12-2023

India Leads World Bank's Global Remittance Charts For 2023

Report 4 min read

According to the World Bank's migration and development report, India has topped the migrants in 2023 in terms of receipts. In 2023, overseas Indians sent an estimated $ 125 billion to India.

The main point of the World Bank's migration report:

The amount sent by migrants to India in the South-Asian region increased.
The World Bank's latest migration and development report reflects the global landscape of transmission flow. It indicates an increase of 3.8% in low and medium-income countries (LMICs) to reach US $ 669 billion in 2023.
In 2023, there is a continuous increase in remittance flow to LMIC. However, there is a slow growth compared to previous years.
Flexible labour markets in advanced economies and Gulf Cooperation Council (GCC) countries have played an important role for migrants.
The report projects a decline in migrants' real income in 2024 due to global inflation and low growth prospects.
In overall, South Asia saw an increase of 7.2 percent in 2023.
The Middle East and North Africa saw a decline in remittance flow for the second consecutive year. It was mainly due to a sharp decline in flow in Egypt.
The remittance flow in Europe and Central Asia declined by 1.4 percent after significant benefits in 2022.
The report expects lower economic activity in many high-income countries. Here, a growth of 3.1 percent is expected in 2024.
The need for caution has been emphasised given unstable oil prices and currency exchange rates.
High-income countries have expressed the possibility of deeper economic recession than expected.
The World Bank's Remittance Values Worldwide Database shows that remittance costs have steadily increased. Average 6.2 percent to send US $ 200 by the second quarter of 2023. Banks remain the most expensive channels, with an average cost of 12.1% to send dispatch.
India's prominence in the global remittance scenario is proof of the important role played by Indian migrants in support of the country's economy.
The report emphasises the need for inclusive labour markets and social security policies to maintain dispatch flows—those who work as an important lifeline for developing countries like India.

Top five countries in terms of money received from migrants:

India $ 125 billion,
Mexico $ 67 billion
China $ 50 billion
Philippines $ 40 billion
Egypt $ 24 billion

Due to strictness in the labour market in America and employment growth in Europe, more money was sent by migrants to India.

Regarding Remittance:

Remittance is a type of money transfer that migrants send to their families and home countries. They are an important source of income and foreign exchange for many developing countries.