India continues to lead the world in remittances, receiving a record $111 billion in 2022, according to the World Migration Report 2024 released by the UN's International Organization for Migration (IOM) in Dhaka, First Post reported.
The report highlights that India, Mexico, and China were the top three remittance recipient countries in 2022, with India being the first country to surpass the $100 billion mark. Mexico followed with $61 billion, maintaining its position as the second-biggest recipient, while China received $51 billion, falling to third place.
The COVID-19 pandemic in 2020 caused a decline in overseas remittances, but the study notes that they have since rebounded. In 2022, an estimated $831 billion in international remittances were sent by migrants worldwide, a substantial increase over the $791 billion sent in 2021.
India's diaspora, which numbers nearly 18 million people, plays a significant role in the country's remittance inflow. The top two nations sending remittances to India were the United States and Saudi Arabia, transferring $79 billion and $39 billion, respectively, in 2022.
Despite having one of the largest diasporas globally, India ranks thirteenth among destination nations, housing 4.48 million migrants, or 0.3% of the world's population. This indicates a significant net outflow of migrants from India, driven mainly by temporary labor movements.
The report also highlights the impact of changing demographics and policies on remittance flows. China, for example, saw a decline in remittances and fell to third place due to demographic changes reducing the working-age population and strict travel policies during the pandemic.
Overall, the report underscores the importance of remittances in the global economy and the significant role played by countries such as India in receiving and sending remittances.
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