Remittances to India to decline by 5%, says World Bank

India, the world’s largest remittance recipient in 2015, may see a drop of 5% this year, the World Bank said citing weak economic growth in remittances-source countries and cyclic low oil prices.

India, the world’s largest remittance recipient in 2015, may see a drop of 5% this year, the World Bank said citing weak economic growth in remittances-source countries and cyclic low oil prices.

Despite the drop, however, India is likely to top the list of countries that receive foreign remittances, marginally ahead of China at $65.2 billion (Rs 4.36 lakh crore). Pakistan, which is at number five, is estimated to receive $20.3 billion (Rs1.36 lakh crore) in 2016. (HT File Photo)

The country is expected to receive remittances of $65.5 billion (₹4.4 lakh crore) this year— it received $69 billion in 2015.

Despite the drop, however, India is likely to top the list of countries that receive foreign remittances, marginally ahead of China at $65.2 billion (Rs 4.36 lakh crore). Pakistan, which is at number five, is estimated to receive $20.3 billion (Rs1.36 lakh crore) in 2016.

“In 2016, remittance flows are expected to decline by 5% in India and 3.5% in Bangladesh, whereas they are expected to grow by 5.1% in Pakistan and 1.6% in Sri Lanka,” the World Bank said in a latest report on remittances.

The World Bank said remittances to South Asia is expected to decline by 2.3% in 2016, following a 1.6% decline in 2015.

It said against a backdrop of tepid global growth, remittance flows to low and middle income countries (LMICs) seem to have entered a “new normal” of slow growth.