Explained: How India Becomes The Top Remittances Receiving Country of World

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Top Remittances Receiving Country of World : Around 40% of the India's remittances flow to the states of Kerala, Tamil Nadu, Punjab, Andhra Pradesh and Uttar Pradesh which are among the top international remittance receiving states.

New Delhi (ABC Live):  India tops in world in term of annual remittances received from its non resident citizens.

According to the World Bank report India received $87 billion in remittances in 2021 duly report by the Business stranded.

The ABC Research Team keeping close watch on India’s international financial transactions refers an article prepared on the basis of online resources materials and Wikipedia for the  our readers to understand the dynamics of Remittances.

What is Remittances?

A remittance is a non-commercial transfer of money by a foreign worker, a member of a diaspora community, or a citizen with familial ties abroad, for household income in their home country or homeland.

Due to its large diaspora and Overseas Citizen of India (OCIs), more than 32 millions, India consecutively remains the top receiver of remittance in the world.

Know India Position in World

            Following is the table of year wise remittances in World  

Country

2012

    2013

      2014

     2015

    2016

    2017

  2018

  2019

     2020

  2021

  India

68.82

69.97

70.97

72.20

62.7

69.0

78.6

84.2

83.1

87

 China

57.99

59.49

61.49

63.90

61.0

64

67.4

70.3

59.5

53

 Mexico

23.37

23.02

24.50

25.70

28.5

31.0

35.7

38.7

42.8

53

 Philippines

24.61

26.70

27.90

29.80

29.9

33.0

33.8

35.1

34.9

36

 Egypt

19.24

17.83

19.83

20.40

16.6

20.0

28.9

26.4

29.6

33.3

 Nigeria

20.63

20.89

20.88

20.89

19.0

22.0

24.3

25.4

17.0

18

 Pakistan

14.01

14.63

17.80

20.10

19.8

20.0

21.0

21.9

26.1

33

 Bangladesh

14.24

13.86

15.10

15.80

13.7

13

15.5

17.5

21.7

23

 Vietnam

10.00

11.00

11.80

12.30

13.4

14.0

15.9

16.7

17.0

18

   Nepal

5.9

6.01

5.29

5.8

6.40

6.68

8.1

5.19

8.1

8.5


Know the Countries from India gets Remittances

According to the a research, the top ten source countries for remittance to India in 2017 are as follows;

Rank

Source country

Amount (US$)

1

UAE

13.826 billion

2

United States

11.715 billion

3

Saudi Arabia

11.239 billion

4

Bangladesh

4.613 billion

5

Kuwait

4.587 billion

6

Qatar

4.143 billion

7

United Kingdom

3.941 billion

8

Oman

3.250 billion

9

Nepal

3.016 billion

10

Canada

2.877 billion

11

Australia

1.944 billion

Remittances going out from India

Rank

Destination country

Amount (US$)

1

Bangladesh

1.033 billion

2

Nepal

1.021 billion

3

Sri Lanka

520 million

4

China

41 million

5

France

15 million

6

Malaysia

11 million

7

Nigeria

10 million

8

Germany

9 million

9

Myanmar

8 million

10

Kenya

7 million

Around 40% of the India's remittances flow to the states of Kerala, Tamil Nadu, Punjab, Andhra Pradesh and Uttar Pradesh which are among the top international remittance receiving states.

Andhra Pradesh gets most of its remittance from the USA, Kerala from UAE, Punjab from Canada as most of the people migrate from their states to these countries.

Tamil Nadu has the most diverse mix of remittance sources due to the presence of large Tamil diasporas in many countries like Australia, Canada, France, United Kingdom etc with Malaysia, Singapore and the United States being the largest sources of remittance. Research work on remittances to India is listed in the India Migration Bibliography.

In recent years many Indian Immigrants have used online money transfer services to send money from overseas to India. In recent years, many new Online and mobile companies have facilitated the transition to online remittances. Even some Indian banks have recently offered such services.

A 2012 study, by Reserve Bank of India revealed 30.8% of total foreign remittances was from West Asia, compared to 29.4% from North America and 19.5% from Europe.[11]

However, owing to the onslaught of COVID-19, the World Bank has estimated a 9?cline in the remittances to India

Major operators of remittance industry

The remittance industry has mostly been dominated by companies headquartered in European financial centers and the American West, with Western Union having the largest market share as of 2019. Other companies such as MoneyGram have also been a key player for decades. Most companies in the industry are pure play money transfer providers, although they may be owned by parent companies with more diverse interests.

Since 2000, remittances have increased sharply worldwide, having almost tripled to $529 billion in 2012. In 2012, migrants from India and China alone sent more than $130 billion to their home countries.

In 2004 the G8 met at the Sea Island Summit and decided to take action to lower the costs for migrant workers who send money back to their friends and families in their country of origin. In light of this, various G8 government developmental organizations, such as the UK government's Department for International Development (DFID) and USAID began to look into ways in which the cost of remitting money could be lowered.

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