Remittances In India
Issues With Remittance Growth:
- Migrants were able to persevere in supporting their families during difficult times because to the Fiscal Stimulus and employment support programmes that sparked the economic recovery in Europe and the US.
- Remittances sent abroad to Russia and the countries of the Gulf Cooperation Council (GCC) increased as a result of rising oil prices and the subsequent increase in economic activity.
- Due to the severity of Covid-19 caseloads and mortality, substantial flows entered the country during the second quarter, especially those for the acquisition of oxygen tanks (far above the global norm).
- The government’s cash transfer programmes to help vulnerable families amid the Covid-19 crisis have been considerably improved by migrant migration.
Forecast for 2022:
- Due to a decrease in the general stock of migrants and the fact that many Arab returnees are still awaiting their flights home, remittances are predicted to rise by 3% to USD 89.6 billion in 2022.
Other countries:
- In most places, remittances were said to have significantly grown.
- South Asia (8%), North Africa (9.7%), South America and the Caribbean (21.6%), Sub-Saharan Africa (6.2%), Europe and Central Asia (5.3%), and the Middle East and North Africa (8%), in that order, are the regions with the lowest percentages.
- Remittances to and from East Asia and the Pacific increased by 1.4% when China was taken into account.
- Variables: Latin America and the Caribbean experienced particularly strong growth due to the U.S. economic recovery as well as other reasons such as how migrants responded to natural disasters in their home countries and remittances sent from home countries to migrants in transit.
Suggestions:
- To continue the flow of remittances, especially through digital channels, it is still vital to provide migrants and remittance service providers access to bank accounts.
- Reforms to the law must also have migrants in mind, especially when it comes to their access to immunizations and defence against wage theft.
World Bank’s Migration and Development Report:
- This was created by the Development Economics (DEC), the primary research and statistics unit of the World Bank, Migration and Remittances Unit. . The brief’s objective is to inform readers on important shifts in migration, remittance flows, and related policy over the last six months.
- There are also projections for medium-term transfers to developing countries.
- The brief is produced twice a year.
Remittances:
- Remittances are generally seen as payments made by migrants to friends and family members back in their country of origin in cash or other non-financial forms.
- The two main factors that make up the total are Personal Transfers in cash or in kind between resident and non-resident households and Compensation of Employees, which refers to the income of workers who temporarily work in another nation.
- Remittances help recipient countries’ economies expand, but there is a risk that they will become unduly reliant on them.
