Indian Expats To Send Record ₹8.12 Lakh Crore Home In 2022: World Bank

The World Bank has predicted that Indian expats will send a record ₹812,218 crore ($100 billion) to their homes in 2022. It is the first time that a single country is doing so.

India is probably going to continue to be the country that receives the most remittances from overseas employees in 2022 as well. 

Remittances to India are predicted to increase by 12% to a staggering $100 billion in 2022, making up the majority of the $163 billion in payments made to all South Asian countries that year, based on a World Bank analysis released on Wednesday.

According to the World Bank, any single country will receive $100 billion for the first time ever.

Globally speaking, the growth of remittances to low- and middle-income countries (LMICs) this year was only 5%, as opposed to a 10.2% increase in 2021. 

These payments are a crucial source of income for households in low- and middle-income nations. 

According to the World Bank, they reduce poverty, enhance nutritional outcomes, are linked to greater birth weight and school enrolment rates for kids in low-income homes.

Wage increases and a robust labor market in the US and other OECD nations helped to increase remittances to India. 

Governments in the Gulf Cooperation Council destinations supported low inflation through direct assistance programmes that safeguarded migrant workers’ capacity to remit. 

In the 2nd quarter of 2022, transferring $200 to the area cost, on average, 4.1% less than it did a year earlier.

“Migrants support their families via remittances while assisting in loosening up the tight labor markets in their host nations. 

Workers have been aided in navigating the financial and employment uncertainty brought on by the COVID-19 pandemic by inclusive social protection policies. 

According to Michal Rutkowski, Global Director for Social Protection and Jobs at the World Bank, such policies have an impact on the entire world through remittances and must be maintained.

The reopening of host economies following Covid, inflation, the strength of the dollar, and a lack of foreign currency in some nations are some of the factors that had an impact on the flow of funds throughout the year.

The World Bank also issued a warning that migration caused by the environment will harm livelihoods.