Remittances Report
15/05/2021

Tags:

Context:

  • Recently, the World Bank released a report on remittances.

Major Findings of the Report 

  • Indian scenario 
    • India received over $83 billion in remittances in 2020.
    • It is a drop of just 0.2% from the previous year, despite a pandemic that devastated the world economy.
      • In 2019, India had received $83.3 billion in remittances.
    • Remittances declined due to a 17% drop in remittances from the United Arab Emirates.
  • Neighbouring Countries:  
    • In Pakistan, remittances rose by about 17%, with the biggest growth coming from Saudi Arabia.
    • In Bangladesh, remittances also showed a brisk uptick in 2020 (18.4%), and Sri Lanka witnessed remittance growth of 5.8%.
    • In contrast, remittances to Nepal fell by about 2%, reflecting a 17% decline in the first quarter of 2020.
  • Global Scenario
    • China received $59.5 billion in remittances in 2020 against $68.3 billion the previous year, is a distant second in terms of global remittances for the year gone by
    • India and China are followed by Mexico ($42.8 billion), the Philippines ($34.9 billion), Egypt ($29.6 billion), Pakistan ($26 billion), France ($24.4 billion) and Bangladesh ($21 billion).
    • Remittance outflow was the maximum from the United States ($68 billion), followed by UAE ($43 billion), Saudi Arabia ($34.5 billion), Switzerland ($27.9 billion), Germany ($22 billion), and China ($18 billion).

Suggestions

    • Growing significance of remittances 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, and timely reporting.
    • Supportive policy responses, together with national social protection systems, should continue to be inclusive of all communities, including migrants.
    • The World Bank is assisting member states in monitoring the flow of remittances through various channels, the costs and convenience of sending money, and regulations to protect financial integrity that affect remittance flows.
      •  It is working with the G20 countries and the global community to reduce remittance costs and improve financial inclusion for the poor.
Quiz of the Day for IAS Prepation
Test Your UPSC Preparation With Vajirao's Daily Current Affairs Quiz

Select the correct answer and click on the “Finish” button Check your score and explanations at the end of the quiz

Start Quiz