Addis Ababa, December 21, 2024 (FMC) – India is the world’s most populous nation and its economic power is spreading beyond its borders. 18 million Indians live overseas. Many of them send money or remittances back home. They infuse billions of dollars into the Indian economy, First Post reported.
According to the World Bank, Indians sent 129 billion USD to their country this year. That is equal to the annual budgets of Bangladesh and Pakistan combined. At 129 billion USD, India is a top recipient of remittances globally.
The second is Mexico with 68 billion USD almost half of India’s influx, according to the report.
Every year, millions of Indians go abroad to study or to work. According to the UN, 18 million Indians now live overseas in places including North America, Europe, the Arab nations and other parts of Asia like Malaysia and Singapore.
A lot of them send money back home. This transfer is known as remittances. With high-earning Indians settling abroad, billions of dollars are being infused into the Indian economy specifically 129 billion USD.
According to the World Bank, that’s how much India has received in remittances this year, making the world’s most populous nation the top recipient globally. And this news is not surprising. India has retained the number one spot for years.
“Over the last four years, the nation has steadily received remittances of more than 100 billion USD. In 2020, the pandemic peaked, so India saw an inflow of 83 billion USD. Over the last decade, remittances to India have grown by 57%. In total, India has received nearly 1 trillion USD only in remittance, according to the report by First Post.
Now, India’s remittances have primarily flowed in from West Asia, North America and Europe, the online media stated.
This is driven by a mix of workers, both skilled and semi-skilled, who migrated abroad for employment. They are engaged in primarily in healthcare, technology and construction sectors. Their remittances have played a vital role in India’s economy.
According to the World Bank, this year the total remittances are expected to reach 685 billion USD. This is a growth of 5.8% compared to the last year.