India Records a 12.3% Surge in Inward Remittances, Tops Global Rankings* New Delhi, December 19: According to the latest data released by the World Bank, India witnessed a substantial 12.3% increase in inward remittances in 2023, reaching $125 billion, up from $111.22 billion in 2022. <\/p>\n\n\n\n
This surge positions India as the highest recipient of remittances globally, accounting for 3.4% of the country\u2019s Gross Domestic Product (GDP). The World Bank’s “Migration and Development Brief,” unveiled on Monday, revealed that India’s dominance in remittances remains unchallenged, with Mexico ($67 billion) and China ($50 billion) following as the second and third highest recipients, respectively. India now represents 66% of all remittances to South Asia, showcasing a rise from 63% in 2022. <\/p>\n\n\n\n
The growth rate of remittances saw significant increases in Latin America and the Caribbean (8%), South Asia (7.2%), and East Asia and the Pacific (3%). Key contributors to the surge in remittances to India include declining inflation and robust labor markets in high-income source countries, leading to increased remittances from skilled Indian expatriates in the US, UK, and Singapore. <\/p>\n\n\n\n
These three nations collectively contribute 36% of total remittance flows to India. The Gulf Cooperation Council (GCC), notably the United Arab Emirates (UAE), played a vital role in this uptick, accounting for 18% of India’s total remittances, the second-largest after the US. <\/p>\n\n\n\n
The report highlighted the positive impact of the February 2023 agreement between India and the UAE, fostering a framework for the use of local currencies in cross-border transactions and collaboration in payment and messaging systems. The use of dirhams and rupees in such transactions is expected to channel more remittances through formal channels. <\/p>\n\n\n\n
Furthermore, South Asia benefits from lower remittance costs, with a cost of 4.3% for sending $200 \u2013 30% below the global average of 6.2% in Q2 2023. Notably, the remittance cost from Malaysia to India stands as the world’s cheapest at 1.9%. While the total remittances to low- and middle-income countries (LMICs) grew an estimated 3.8% in 2023, the World Bank predicts a softening to 3.1% in 2024, primarily due to the risk of a decline in real income for migrants in the face of global inflation and low growth prospects.<\/p>\n","protected":false},"excerpt":{"rendered":"
India Records a 12.3% Surge in Inward Remittances, Tops Global Rankings* New Delhi, December 19: According to the latest data released by the World Bank, India witnessed a substantial 12.3% increase in inward remittances in 2023, reaching $125 billion, up from $111.22 billion in 2022. This surge positions India as the highest recipient of remittances […]<\/p>\n","protected":false},"author":1,"featured_media":12035,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,15],"tags":[],"class_list":["post-12024","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international","category-national"],"yoast_head":"\n