How does India receive most of the remittances in the world?

Introduction:- 

Do you know essential facts about the global remittance industry and the reasons why India has gotten a significant chunk of international remittance for the past few years?  Let’s figure it out below here.

 

Background:- 

Third world countries, at times, cannot provide their people with the kind of opportunities, living standards, environment, and education that are abundantly available in the developed states. Therefore, the people of third world countries, such as India, travel to the developed countries to join either the blue-collar or white-collar working-class – depending on their skillset – and then send money to India to their families through some of the world’s top online money transfer companies including ACE Money Transfer.

 

Now, let’s take a quick look at the global remittances in terms of figures.

 

Remittances statistically:- 

The World Bank estimates that the global remittances hit a record-high $719bn in 2019, before COVID-19. $548bn went to low- and middle-income countries out of this amount. These numbers, however, fell because the pandemic shook economies the world over severely. The total global remittances fell to $702bn in 2020, with $539bn of the entire international remittances going to the low- and middle-income countries.

 

Let’s now see the statistics of the money transfer to India from abroad by Non-Indian residents (NRI).

 

A report by the United Nations stated that India has the largest expatriate population globally which means, with 18 million Indian expatriates living in different parts of the world in 2020. A few other countries with substantial expatriate populations are Mexico (11 million), Russia (11 million), China (10 million), and Syria (8 million).

 

Let’s now see how Indian expatriates are spread across the world.

 

The distribution:- 

The same report noted that the most significant number of Indian migrants are present in the United Arab Emirates (3.5 million), followed by the USA (2.7 million) and Saudi Arabia (2.5 million). The other countries host many Indian expatriates, such as Australia, Canada, Kuwait, Pakistan, the UK, Qatar, and Oman.

 

The Indian remittance in statistics:- 

Being the largest recipient of remittances, India received a staggering $87bn in 2021 with 20% of the total amount coming from the USA alone, the latest World Bank report noted. And mostly, the volume of remittances in India hovers around $80bn constantly. Therefore, the Indian remittances are expected to grow by 3% in 2022, pushing the total amount to $89.6bn.

 

Now, let’s take a quick look at a few reasons behind India’s occupancy of the world’s top remittance recipient slot.

 

Population:- 

India has a population of around 1.5 billion, contributing significantly to the Indian expatriates’ colossal presence around the world. For example, recent studies have suggested that approximately 18 million expatriates from India are present in different countries. The Gulf hosts the most prominent Indian diaspora, followed by Western Europe, the US, and Canada.

 

Family ties:- 

Indians love to remain deep-rooted with their culture and families even after acquiring foreign nationalities. This helps the flow of Indian migrants to and from other countries worldwide, eventually contributing to remittances.

 

Indian IT industry:- 

India has made significant strides in IT, and therefore Indian IT experts conveniently find work in the West which is the hub of IT. To put things into perspective, a brief stat will suffice. In 2020, India earned a vast $148bn through software export. This statistic alone can help you better understand the importance of the IT industry in earning huge remittances.

 

Now, online money transfer to India from abroad is tricky, given the chances of online scamming and the slow speed of transfers. Therefore, you need to look for companies that offer tighter transaction security, speed in moving funds, the convenience of initiating and tracking a transaction while you are on the go, etc. And there are only a handful of international companies, including ACE Money Transfer, that offers these and many other features necessary for a transaction to your satisfaction. 

    

Conclusion:- 

In this article, you have learned all about global remittances, India’s statistics, and a few reasons why India is the top remittance recipient. You need to ensure you choose your remittance service provider wisely while keeping all of the above in mind. So far, ACE Money Transfer has been the best remittance service provider to send money to India online from the UK, Europe, Canada, Africa, Asia, and Australia.