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Remittance Flow: A World Bank report states that India will be the first country where migrant workers will send $100 billion from abroad this year. India had received $ 89.4 billion in 2021 from Remittance i.e. employees working abroad. According to the World Bank, Remittance flow has increased in India due to increase in salary, strong labor market in America. According to the World Bank report, remittance flow in India will increase by 12 percent to reach $ 100 billion this year. Due to this India is ahead of Mexico, China and Philippines in terms of Remittance.
The report said that Indian migrants with high skills are living in rich countries like US, UK and Singapore and they are sending more money home. According to the report, in low and middle income countries, remittance has increased by 5 percent in 2022 and it has become about $ 626 billion. This increase is half of the increase in 2021. Apart from India, the major countries receiving remittances include Mexico, China, Egypt and the Philippines.
Money will flow less in neighboring countries
It has also been said in the report that countries like Pakistan, Bangladesh and Sri Lanka are facing domestic and international problems and their remittances will be less in 2022. Except India and Nepal, other countries in South Asia saw a 10 percent decrease in remittances from abroad in 2021.
What will be the impact on India’s economy
The share of remittances in India’s gross domestic product (GDP) is about 3 percent. It is also important from the point of view of reducing the fiscal gap. Also, foreign exchange comes from remittances, which strengthens the Indian rupee. During the last one year, the Reserve Bank has had to sell a large amount of dollars in the open market to support the rupee, due to which India’s foreign exchange reserves have fallen. will increase and the rupee will strengthen.
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