21 C
Dubai
Saturday, March 2, 2024
spot_img

India Tops Charts with Unprecedented $125 Billion Inward Remittance

Unprecedented India has maintained its position as the largest recipient of global remittances, with a remarkable 12.3% surge in inward flow to $125 billion in 2023. This reflects the significant role played by the Indian diaspora in supporting families and contributing to the country’s economic resilience.

Key Figures and Trends

  • The United States remains the primary source country for remittances.
  • GCC countries, such as the UAE and Saudi Arabia, continue to be major contributors to remittances in 2023.
  • The World Bank’s Migration and Development Brief reports a 3.8% growth in remittance flows to low- and middle-income countries (LMICs), reaching $669 billion.

Regional Dynamics: Unprecedented 

  • South Asia, led by India, maintains its position as the top recipient region.
  • The Middle East and North Africa witness a decline in remittance flows for the second consecutive year, primarily due to reduced flows to Egypt.

Top Five Remittance Recipient Countries in 2023

  1. India – $125 billion
  2. Mexico – $67 billion
  3. China – $50 billion
  4. Philippines – $40 billion
  5. Egypt – $24 billion

Comparative Analysis with 2022: Unprecedented 

  • In 2022, the top five recipient countries were India, Mexico, China, the Philippines, and Pakistan.
  • India received $111 billion in remittances in 2022.

Foreign Sources of Remittances to India (Fiscal Year 2021-22)

  • The US – 23.4%
  • UAE – 18%
  • UK – 6.8%
  • Saudi Arabia – 5.1%
  • Additional contributors include Kuwait, Oman, and Qatar.

Challenges and Remittance Costs

  • Remittance costs remain high, averaging 6.2% to send $200 as of Q2 2023.
  • Banks are identified as the costliest channel for sending remittances, with an average cost of 12.1%.

Future Outlook and Concluding Insights: Unprecedented 

  • Remittances surpass foreign direct investment and official development assistance, creating opportunities for private capital mobilization.
  • Weaker global economic activity is expected to soften remittance growth to LMICs to 3.1% in 2024.

Conclusion:

India’s continued prominence in global remittances underscores the vital role of the Indian diaspora in supporting the nation’s economy. The report emphasizes the importance of inclusive labour markets and social protection policies to sustain remittance flows, serving as critical lifelines for developing countries like India.

Also Read

Population of Dubai Increases by 100,000 in 2023

The Hazards of Driving Below the Speed Limit: Increased Risk of Accidents in the UAE-1

Related Articles

International Jewellery Summit Sparkles in Dubai , Dazzling Unity

International Jewellery Summit in Dubai, The anticipation and excitement are palpable as the stage is set for the upcoming India Gem & Jewellery Show in...

Emirates Development Bank’s Impact on UAE Industrial GDP: A Catalyst for Economic Growth

Emirates Development Bank Empowers UAE's Industrial Growth with Boost to GDP Contribution Since the launch of its strategy in 2021, Emirates Development Bank (EDB) has...

UAE Corporate Tax Introduces Dh10,000 Fine for Late Registration

UAE Corporate Tax – Unveiling the Dh10,000 Fine for Late Registration The Ministry of Finance recently unveiled a new initiative aimed at bolstering compliance with...

Saudi Arabia and Qatar Join Forces in Bid for Transformative Egyptian Project, Prosperity Unleashed

Saudi Arabia and Qatar Compete for Revolutionary Egyptian Project In the race to invest in the Ras Ghamila area of Sharm El-Sheikh, Egypt, institutions backed...

Elon Musk Visionary Optimus Video Leaves Audiences Intrigued: Unraveling the Mystery Behind its Power

Elon Musk Visionary Video Leaves Viewers Intrigued Elon Musk has sparked widespread intrigue and speculation across social media platforms with the unveiling of a humanoid...

Latest Articles