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Context:

• India, the world’s largest recipient of remittances, received $87 billion in 2021 with the United States being the biggest source.

Further Details:

• India is followed by China, Mexico, the Philippines, and Egypt.
• remittances are projected to grow three per cent in 2022 to $ 89.6 billion.
• Flows to India (the world’s largest recipient of remittances) are expected to reach $ 87 billion, a gain of 4.6 per cent.
• Remittances to low- and middle-income countries are projected to have grown a strong 7.3 per cent to reach $589 billion in 2021.
• Remittance flows from migrants have greatly complemented government cash transfer programs to support families suffering economic hardships during the COVID-19 crisis.

About Remittances:

• A remittance is money sent to another party, usually one in another country.
• The sender is typically a foreign worker and the recipient a relative back home.
• Remittances represent one of the largest sources of income for people in low-income and developing nations, often exceeding direct investment and international development assistance.

Role of Remittances:

• Remittances play an increasingly large role in the economies of small and developing countries.
• They also play an important role in disaster relief, often exceeding official development assistance (ODA).
• They help raise the standard of living for people in low-income nations and help combat global poverty.
• Remittances are also used to help those living in less developed nations open bank accounts, a trend that helps promote economic development.

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