World Bank Report Shows India is the Highest Receiver of Remittances, Surpassing China
Indian diaspora working or settled abroad are going to make India the biggest recipient of remittances in 2018. The estimates from World Bank's Migration and Development Brief of remittances shows that India is going to receive a whopping USD 80 billion by the end of the year.
China will receive USD 67 billion, Mexico and the Philippines USD 34 billion each and Egypt USD 26 billion.
Remittances to South Asia are projected to increase by 13.5 percent to $132 billion in 2018, a stronger pace than the 5.7 percent growth seen in 2017. This is due to stronger economic conditions in advanced economies, and the accession in oil prices have a definite influence on outflows from some GCC countries reported a 13 percent growth in outflows for the first half of 2018.
The bank expects that formally reported remittances to emerging countries will grow by 10.8 percent to reach $528 billion in 2018. Global remittances, which include flows to high-income countries, are projected to grow by 10.3 percent to $689 billion.
Mahmoud Mohieldin, Senior Vice President for the 2030 Development Agenda, United Nations Relations, and Partnerships at the Bank in the brief said,
“Even with technological advances, remittances fees remain too high, double the SDG target of 3 percent. Opening up markets to competition and promoting the use of low-cost technologies will ease the burden on poorer customers.”
“High recruitment costs paid by low-skilled migrant workers can be a huge drain on remittance flows. Sometimes, recruitment costs amount to more than 2 years of a migrant worker's income. Reducing recruitment costs by improving recruitment practices can significantly increase remittance flows to poor families,”
says Dilip Ratha, lead author of the Brief and head of KNOMAD.
It is important to notice that all this money coming to the country is controlled by a third party like banks. They take a cut for handling cross-border transactions earning billions in the process, for essentially no work. This is why cryptocurrencies are essential in emerging economies like India. However, India is not crypto friendly at all as their top financial regulators, the Reserve Bank Of India, has done a blanket ban on all cryptos.