India is on course to maintain its position as the top recipient of remittances, with migrant workers who are on track to send home a record amount of money this year. According to the World Bank's Migration and Development brief, remittance flows to India are predicted to increase by 12 percent and hit $100 billion for the first time this year, way ahead of Mexico, China, and the Philippines. This will help India maintain its top spot.

Share Market Live

NSE

Remittances to India were enhanced by wage hikes and a strong labor market in the United States and other OECD countries. Remittances are an important source of income for households in low- and middle-income countries as it helps in reducing poverty and promoting resilience while also improves birth weight of newborns and school enrollment rates for older children.

Remittances to low- and middle-income countries increased by about 5 percent to over $626 billion in 2022, which is about half the rise experienced in the previous year. Growth is forecast to decrease even more to about 2 percent next year, according to a report released by the World Bank on Wednesday.

As a result of climate change, migration within countries will increase and livelihoods will be impacted. Due to climate-related migration, changes may be needed in international legal norms and institutional frameworks for cross-border migration, added the Bank.

Globally, remittances rose in 2022 as host economies reopened and employment rose following the COVID-19 pandemic, but rising prices adversely affected migrants' real incomes, the World Bank said in its latest Migration and Development Brief.

Also read: CBDT extends deadline for filing foreign remittance tax forms to August 15; details here

The World Bank said the strong growth rate forecast for 2022 was noteworthy given that it came after a surge of 10.2 percent in 2021. Global remittance flows, including advanced economies, are expected to reach $794 billion in 2022, the report said.

According to the data by the World Bank, the value of outbound remittances from Russia to Central Asia increased in U.S. dollar terms after the start of the Russia-Ukraine conflict, whereas remittances to North Africa and other places decreased in value due to the weaker euro.

Remittance growth in high-income countries is expected to slow further in 2023, according to the report.

Also read: Remittance scam: IndusInd Bank says already reported irregularities

"Downside risks remain substantial, including a further deterioration in the war in Ukraine, volatile oil prices and currency exchange rates, and a deeper-than-expected downturn in major high-income countries," the report said.

Also read: Meta offers immigration support to H-1B visa holders impacted by its lay-offs