India has topped the charts of world’s highest remittance recipients with sending $79 billion back to the country in 2018, reports the World Bank.
Among countries, India was followed by China ($67 billion), Mexico ($36 billion), the Philippines ($34 billion), and Egypt ($29 billion).
According to the latest edition of the World Bank’s Migration and Development Brief, India retained the top position on the remittances recipient list.
Over the past three years, India recorded an increase in remittance to $65.3 billion in 2017 to $62.7 billion in 2016.
“Remittances grew by more than 14 pc in India, where a flooding disaster in Kerala likely boosted the financial help that migrants sent to families,” the World Bank said.
Over the previous record high of $483 billion in 2017, remittances to low- and middle-income countries registered an increase of 9.6%, i.e. a record high of $529 billion in 2018.
Including the flows to high-income countries, global remittances increased from $633 billion in 2017 to $689 billion in 2018, according to the report.
“The upsurge was driven by stronger economic conditions in the US and a pick-up in oil prices, which had a positive impact on outward remittances from some GCC countries,” the report said.
The Gulf Cooperation Council (GCC) or the Cooperation Council for the Arab States of the Gulf is a regional inter-governmental political and economic union of Bahrain, Oman, Kuwait, Saudi Arabia, Qatar and the UAE (United Arab Emirates).
“Remittances are on track to become the largest source of external financing in developing countries. The high costs of money transfers reduce the benefits of migration. Renegotiating exclusive partnerships and letting new players operate through national post offices, banks, and telecommunications companies will increase competition and lower remittance prices,” Dilip Ratha, lead author of the Brief and head of KNOMAD (Global Knowledge Partnership on Migration and Development) said on ways to lower remittance costs.