Migrant workers of India have been the greatest remitters of inward funds to India as the country is the recipient of USD 100 billion in 2022, despite global recessions and rising inflations. The record remittance flows to India have risen to 12 per cent which is the highest in the world after the pandemic, ahead of China, Mexico and the Philippines. Although inward remittances to various countries across the globe have increased significantly, with South East Asia receiving USD 163 billion, India is the first country to receive more than USD 100 billion in yearly remittances as per World Bank statements.
There is a significant rise in wage hikes of Indian workers that resulted in a record inward remittance of more than USD 100 billion – an increase of 12%. Not just in India, inward remittances grew at a rate of 3.5 per cent in South Asia, and Nepal’s rate surged by 4%. This is perhaps possible after the discontinuation of special incentives that some of the countries introduced to attract flows during the pandemic.
Remittances are a vital source of household income for Low- and middle-income countries (LMICs). They mitigate their poverty levels, improve nutritional outcomes and enhance their meagre income from overseas income. Their overall growth index depends heavily on foreign inward remittances.
Migrants across the world support their families through inward remittances. Inclusive social protection policies have helped workers weather the income and employment uncertainties created by the Covid-19 pandemic.
The Middle East has the maximum number of migrant Indians
A large number of Indian migrants have continued to work in the middle-east, and the inward remittances from them are always high, but the reason for the recent surge might be due to wage hikes after the pandemic to entice foreign migrants.
Besides, there is a growing trend of saving, spending least and sending maximum to parent accounts in India. Indian labours are most sought after across the globe for their skills and sincerity. And of course inward remittances to India will grow in the days to come.
According to World Bank, studies show that remittances help recipient households to build resilience, for example through financing better housing and coping with the losses in the aftermath of disasters.
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Remittance flows to developing regions were shaped by several factors in 2022. A reopening of host economies as the COVID-19 pandemic receded supported migrants’ employment and their ability to continue helping their families back home.
“Migrants help to ease tight labour markets in host countries while supporting their families through remittances. Inclusive social protection policies have helped workers weather the income and employment uncertainties created by the COVID-19 pandemic. Such policies have global impacts through remittances.
The rising pressures from climate change will both drive increases in migration within countries and impair livelihoods. The poorest are likely to be most affected as they often lack the resources necessary to adapt or move.
Inward remittances from Indian Migrant Workers constitute a large amount of our Foreign Exchange Reserve
Indian migrant’s inward remittances constitute a considerable amount of total remittances coming to the country. Remittances from migrants significantly contribute to the buoyant Forex Reserves and have been largely responsible for the rising economy of India. The Foreign Ministry in India has taken serious measures to address their agonies and concerns in alien countries while the respective Embassies have been advised to provide immigration and other assistances to the Indian migrant workers.
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