Indians abroad set to send record $100 billion in remittances: What it means

World Bank On Remittances: India had received $89.4 billion in remittances in 2021, according to the World Bank, making it the top recipient globally last year.

Indians abroad are set to send $100 billion in remittances this year, according to a World Bank report - the first time a single country has reached that number. The increase was led by wage rises and strong labour markets in the US and other developed countries, the report said.

Remittances To India: World Bank headquarters.(File)

India had received $89.4 billion in remittances in 2021, according to the World Bank, making it the top recipient globally last year.

“Remittance flows to India were enhanced by the wage hikes and a strong labor market in the United States,” and other rich countries, the bank said.

In total, the amount of money sent back home by migrants around the world has grown by 5% in 2022, it added saying that the money is a crucial source of household income in low and middle-income countries.

Other top recipient countries for remittances include Mexico, China, Egypt and the Philippines, the report said. In recent years, many Indians have moved to well-paid jobs in high-income countries, such as the US, UK and Singapore. The payments account for around 3% of India's gross domestic product (GDP) - a measure of the size of a country's economy, BBC reported.

While India and Nepal have experienced an increase in remittances, other countries in South Asia have seen a decline of more than 10% in the last year, due to the end of government incentives introduced during the pandemic, the report said.

Overall, remittances to low and middle-income countries have grown by 5% in 2022 to around $626 billion - around half the rate of growth seen in 2021.