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Remittances Inflows and their significance - Coggle Diagram
Remittances Inflows and their significance
Context
Workers remittances are current transfers by migrant who are considered residents in the source
World Bank defines it as “the sum of worker’s remittances, compensation of employees, and migrants’ transfers as recorded in the IMF Balance of Payments.
Remittances are a vital source of household income for low- and middle-income countries
Non-commercial transfer of money by a foreign worker in their home country or homeland
India’s total
remittances to grow
It attributed the feat to large share of Indian migrants earning relatively high in US, UK and East Asia
The surge was influenced by various factors, including India’s currency agreement with the UAE.
In 2023, India witnessed the highest remittance inflows globally, amounting to USD 125 billion.
Why is remittance to India
so high this year?
Easing of pandemic
Inflation control in India
Work from home
Crude oil dynamics
Upskilling
Significance of remittances
Labour contribution
Globalization
Stable source of funds
FOREX reserves
Issues with Remittances
Accounting inconsistencies
No formal registration in India
Accuracy of data
Ignoring informal flows:
Fear of currency depreciation
Hawala transactions
Way forward
Reducing the costs of migration
Policy support
Promoting labour mobility