This year the cash flow will cross $10,000 crore
Kochi: According to the World Bank report, India will retain the title of the country that receives the most expatriate remittances in 2022. The report predicts that cash flows will cross $10,000 crore this year for the first time in history, with a growth of 12 percent over 2021.
India, which continues to hold the first place in the flow of expatriate money, earned 8,700 crore dollars last year. China, Mexico ($5.3 billion each), Philippines ($3.6 billion), and Egypt ($3.3 billion) followed India, respectively.
This year too, India will lag far behind these countries. India is strengthened by high remittance flows from the relatively low-skill and low-income Gulf countries to the high-skill and high-income countries of the United States, Britain, Japan, Singapore, Australia and New Zealand.
ahead of foreign investment
The central government hopes that foreign direct investment (FDI) will reach 8,000 crore dollars in India this year. Expatriate remittances will be 25 percent more than this.
Back to the Gulf
The share of GCC countries (Saudi Arabia, UAE, Kuwait, Oman and Qatar), which are India’s traditional sources of remittances, declined from 54 per cent to 28 per cent from 2016-17 to 2020-21.
The share from America, Britain and Singapore increased from 26 percent to 36 percent. In 2020-21, the United States took the top spot with a share of 23 percent, leaving the UAE behind.
Maharashtra ahead
Kerala accounted for 19 percent of the total remittances to India. This has come down to 10.2 percent in 2020-21. Maharashtra, which improved its share from 16.7 to 35.2 percent, also grabbed the top spot from Kerala.
21%
21 percent of expatriate remittances flowing into India go to Kerala-based Federal Bank.