India received $87 billion in remittances in 2021: World Bank
India had received over $83 billion in remittances in 2020
India received $87 billion in remittances in 2021, the World Bank said in its latest report on Wednesday, adding that the United States accounted for over 20% of these funds.
"In India, remittances advanced by an estimated 4.6 percent in 2021 to reach $87 billion," the report noted.
India had received over $83 billion in remittances in 2020.
In 2021, the top five remittance recipients in current US dollar terms were India, China, Mexico, the Philippines, and the Arab Republic of Egypt.
The United States was the most significant source country for remittances in 2020, followed by the United Arab Emirates, Saudi Arabia, and Switzerland.
“Remittance flows from migrants have greatly complemented government cash transfer programs to support families suffering economic hardships during the COVID-19 crisis. Facilitating the flow of remittances to provide relief to strained household budgets should be a key component of government policies to support a global recovery from the pandemic,” said Michal Rutkowski, World Bank Global Director for Social Protection and Jobs.
Remittances to low and middle income countries are projected to have grown a strong 7.3% to reach $589 billion in 2021, the World Bank said.
This return to growth is more robust than earlier estimates and follows the resilience of flows in 2020 when remittances declined by only 1.7% despite a severe global recession due to COVID-19, according to the World Bank's Migration and Development Brief 35.
The World Bank report also highlighted another important aspect.
For a second consecutive year, remittance flows to low- and middle-income countries (excluding China) are expected to surpass the sum of foreign direct investment (FDI) and overseas development assistance (ODA).
This underscores the importance of remittances in providing a critical lifeline by supporting household spending on essential items such as food, health, and education during periods of economic hardship in migrants’ countries of origin, the World Bank said.