India Remittance: The people of India are hoisting the flag of excellence in every corner of the world including science and technology. Indians have also created a new record in sending dollars after earning abroad. India has reached a new height this year in terms of sending remittances.
According to the latest World Bank report on migration and development, in 2022, Indians are expected to send more than $100 billion to India by earning abroad. This amount is about 8 lakh crore rupees.
100 billion dollar remittance to any country for the first time
The World Bank has said that for the first time a country is going to receive an amount of 100 billion dollars in the form of Remittances. This historical record has been registered in the name of India. Till now no country has received an amount of 100 billion dollars in the form of Remittances.
Compared to last year, this year the amount received in India from foreign earnings is 11 billion dollars more. Most of the money comes to India from America and Gulf countries. However, since 2021, the amount of income coming to India from Gulf countries is decreasing and America has reached the first position in this matter.
Send more amount than FDI from abroad
How big this amount is, it can be estimated from the fact that it is about three percent of India’s Gross Domestic Product (GDP). This amount coming from the foreign earnings of Indians has also left the figure of Foreign Direct Investment (FDI) far behind. This amount is about 17 percent more than the amount that came from FDI in 2021-2022. In 2021-22, an amount of $ 83.57 billion came from FDI in India.
According to the World Bank, the rate of growth in remittances by Indians is also very high. India has received 12 percent more dollars from foreign earnings this year than last year. In low and middle income countries, the amount coming from foreign earnings has increased by only five percent this year.
In 2021, this amount had increased at a rate of more than 10 percent. In 2022, the amount sent to low and middle income countries (LMIC) increased to $ 626 billion. If the figures of developed countries are also included, then the remittance figure at the global level will reach $794 billion.
China’s remittances are continuously decreasing
In this matter, India has left countries like China, Mexico and Philippines far behind. After India comes the number of Mexico, China and Philippines. Mexico has received $60 billion, China $51 billion and the Philippines $38 billion under this head.
Interestingly, China’s remittances have been showing a decline for the last four years. Remittances from abroad come in the form of dollars. This also increases India’s dollar reserves.
Corona also did not affect foreign earnings
Every year a large number of people from India go abroad to earn. For the last two and a half years, due to Corona, there is a threat of recession on the global economy. Despite this, there has been no significant impact on the amount coming from foreign earnings in India. Although there was a slight decrease in this amount in the year when the outbreak of Corona was the highest, but in 2021, Indians sent money fiercely. This year itself has created a record.
The amount of Remittances received by India in 2019 was $ 83.3 billion, while in the initial year 2020 of Corona, this amount was $ 83.1 billion. Despite the Corona epidemic, in the next year 2021, Indians sent $ 89.3 billion. Indians sent 20 percent of this amount from America.
India is at the first position in 14 years
For the last 14 years, India has retained the first position in terms of Remittances. During this period, the amount of remittances received by India has doubled. It has increased more rapidly after Prime Minister Narendra Modi assumed power at the Center in 2014. Compared to 2014, an amount of $ 30 billion more has been achieved in 2022. It has increased by 42 percent in the last eight years.
Why the earnings of Indians abroad increased
Considering India as an exception, there has not been any significant increase in remittances in other countries of South Asia. The question arises that what are those factors, due to which even the conflict between Corona and Russia-Ukraine for the last 10 months did not affect the earnings of Indians abroad.
This year, there has been a substantial increase in salaries and wages in the United States and the member countries of the Organization for Economic Co-operation and Development ie OECD. Labor market has also strengthened in these countries. Indian workers also benefited from this. Apart from this, the Gulf countries kept the inflation rate low through direct support measures, due to which Indians working in these countries were able to save a large part of their earnings.
Attitude of rich countries for jobs
Earlier, unskilled laborers from India used to go to Gulf countries on a large scale for earning. Now the number of highly skilled people among Indians going abroad is increasing rapidly. It has been said in the World Bank report that for the last few years, a change is being seen in the trend of going abroad for earning.
Earlier Indians used to go to Gulf countries like Saudi Arabia, Kuwait and Qatar in large numbers for low-skilled jobs. Now Indians are turning to America, United Kingdom, Australia, New Zealand and Singapore in large numbers for high-skilled jobs. The result of this is that now Indians are sending more money from these countries.
Every year a large number are going abroad
After Corona, there are signs of improvement in many big economies of the world. The demand for Indian workers in these countries is increasing now. These include unskilled laborers as well as highly skilled people. According to government statistics, between January 2020 and July 2022, more than 28 lakh Indians went abroad for employment.
During this period, more than 4 lakh Indians went to 17 countries requiring Emigration Check Required (ECR) passports for jobs. Of these, maximum 1.31 lakh people (32%) were from Uttar Pradesh. After that it was Bihar’s number. About 70 thousand people went from Bihar.
It is clear from the data of the Ministry of External Affairs that the number of Indians going abroad for jobs is increasing rapidly. In 2020, 7.15 lakh Indians went out for jobs. At the same time, this figure increased to 8.33 lakhs in 2021. Till July this year, more than 13 lakh Indians have gone abroad for jobs.
A large number of Indians are still going to work in 18 countries requiring Emigration Check Required (ECR) passports. ECR passport is given to such workers who have not studied even till 10th standard. According to the data of the Ministry of External Affairs, in 2019, the number of Indians going for jobs in such countries was 94 thousand. It increased significantly after Corona. Every year two lakh Indians are going for jobs in countries requiring Emigration Check Required (ECR) passport.
Indians are spread in every corner of the world
There is also a large number of overseas Indians in different countries of the world. These include both Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs). A huge amount of money comes to India through these people. Relatives of many of these people are still in India, for whom dollars are sent from abroad. According to the Ministry of External Affairs, there are more than 32 million overseas Indians in the world. Maximum 45 lakh Indians are in America.
According to the World Bank, after a decline in the last two years, there has been an increase in remittances in the countries of East Asia and Pacific region this year. This amount has also increased in Latin America and Caribbean countries. Labor shortages in the hospitality and health sectors of high-income economies and benefits to the Gulf countries due to rising crude oil prices increased the demand for workers this year.
Due to these reasons, a considerable growth was seen in the amount of remittances from low-income countries this year. According to the World Bank, employment opportunities increased on a large scale in Gulf countries this year. Employment opportunities are also increasing in many rich countries of the world. Although the World Bank believes that there may be a decrease in the amount of remittances for the countries of South Asia and Pacific region in the coming two years, but it will not affect India.
read this also: India G20 Presidency: India on the way to become the new head of the world, what will be the role as G20 president, know every aspect