Remittance to India is set to cross the record $100-billion mark in 2022 - IE - 03/12/22

Context:
According to the World Bank’s (WB) Migration and Development Brief, India is expected to receive a record $100 billion in remittances in 2022, making it the top recipient this year.
Relevance:
Indian economy related issues
About remittances:
-Remittances to India are money transfers from non-resident Indians (NRIs) employed outside the country to family, friends or relatives residing in India and are a vital source of household income.
-As per the Ministry of External Affairs (MEA), remittance is received from the approximately 35 million members of the Indian diaspora.

-India’s remittance will grow 12% resulting in a $100 billion flow ($89.4 billion in 2021), mainly attributed to the Indian migrants earning relatively high salaries in the US, UK and East Asia.
-Despite reaching a historic milestone, India’s remittance flows are expected to account for only 3% of its GDP in 2022.

Reasons behind high remittance to India:
-A gradual shift in destinations
-A strong labour market
-Depreciation of the Indian rupee to the US dollar

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