India’s Remittances record minor reduction

News: India received over USD 83 billion in remittances in 2020, according to a World Bank report. In 2019, India had received USD 83.3 billion in remittances. The report said India’s remittances fell by just 0.2 per cent in 2020.

Details:

  • Much of the decline was due to a 17 per cent drop in remittances from the United Arab Emirates, which offset resilient flows from the United States and other host countries. The World Bank, in its latest Migration and Development Brief, said despite COVID-19, remittance flows remained resilient in 2020.
  • China, which received USD 59.5 billion in remittances in 2020 against USD 68.3 billion the previous year, is a distant second. India and China are followed by Mexico (USD42.8 billion), the Philippines (USD34.9 billion), Egypt (USD29.6 billion), Pakistan (USD26 billion), France (USD24.4 billion) and Bangladesh (USD21 billion).
  • Remittance outflow was the maximum from the United States (USD68 billion), followed by UAE (USD43 billion), Saudi Arabia (USD34.5 billion), Switzerland (USD27.9 billion), Germany (USD22 billion), and China (USD18 billion).
  • The relatively strong performance of remittance flows during the COVID-19 crisis has also highlighted the importance of timely availability of data.

Given its growing significance as a source of external financing for low- and middle-income countries, there is a need for better collection of data on remittances, in terms of frequency, timely reporting, and granularity by corridor and channel.