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India remains World’s Top Remittance Recipient in 2021: World Bank

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India remains world’s top remittance recipient

The World Bank (WB) has released a report titled ‘Migration and Development Brief 36, May 2022: A War in a Pandemic: Implications of the Ukraine crisis and COVID-19 on Global Governance of Migration and Remittance Flows’. In accordance to this, India has emerged as the largest remittance receiving country globally in 2021 worth $89.4 billion as compared to $82.73 billion in 2020. 

  • It is followed by Mexico at 2nd place and China at 3rd, Philippines (4th), and Egypt (5th).
  • The Migration and Development Brief reports are an update on migration and remittance flows as well as salient policy developments in the area of international migration and development.

Key Points:

i.Though India retained its position as the top recipient of remittances globally, however, in comparison to its economy, remittances accounted for only 3% of GDP (Gross Domestic Product) in 2021.
ii.For 2022, India’s remittances are expected to grow at 5%.

iii.For 2023 too, India’s, remittances are projected to grow 5%.

iv.The region of South Asia saw 7% gain in remittances to $157 billion in 2021.

v.Globally, the average cost of sending $ 200 was 6% but it was the cheapest to send money to South Asia (4.3%) and most expensive to send to Sub-Saharan Africa (7.8%).

vi.The remittance flows to Low-and Middle-Income Countries (LMICs) saw a growth of 8.6% during 2021, when remittance flows reached $605 billion, exceeding the WB’s estimates.

  • In total, remittance flows to LMICs are expected to increase by 4.2% to reach $ 630 billion in 2022. 

vii.Bangladesh was the 7th highest recipient of remittance from abroad in 2021.

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Recent Related News:

i.The World Bank’s India head and a Bangladeshi economist, Junaid Kamal Ahmad was appointed as a Vice President of the operation side of the Multilateral Investment Guarantee Agency MIGA), which offers political risk insurance, credit enhancement guarantees to help developing countries.

ii.The World Bank (International Bank for Reconstruction and Development, IBRD) has created the world’sfirst kind of Wildlife Conservation Bond (WCB), also known as the “Rhino Bond,” in support of Africa’s efforts to protect the endangered species.

About World Bank (WB):

President– David Malpass
Headquarters– Washington, DC, United States
Member Countries– 189(including India)