India Receives Highest Remittances At $129Bn: World Bank

With 129 billion dollar, India became the top recepient of remittance in 2024 after Mexico, China, Philipines, and Pakistan.  A blog post by World Bank economist communicated that India received highest inflow of remittance driven by Job-market in high income countries.

 The growth rate of remittance inflow stood at 5.8 percent increasing from 1.2 percent registered in 2023, The post underlined.

The report further estimated the remittance of low-middle income countries to reach 685 billion dollar in 2024.

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“The recovery of the job markets in the high-income countries of the Organization for Economic Co-operation and Development (OECD), following the onset of the pandemic, was the key driver of remittances,” the blog post said.

According to the report remittance inflow has outpass the other type of external financial inflow in low-middle income countries. Blog post further argues that inflow rate will continue to grow due to migration pressure, income gap, and climate change among others.

Additionally, the World Bank post underscores the edge of remittance inflow over foreign direct investment, saying that remittances increased by 57 per cent, while FDI declined by 41 per cent. The difference of remittance and FDI is estimated to widen further.

The high remittance flow to India, Pakistan, and Bangladesh is estimated to make asia biggest recepient of remittance flow in 2024.

“Countries need to take note of the size and resilience of remittances and find ways to leverage these flows for poverty reduction, financing health and education, financial inclusion of households, and improving access to capital markets for state and non-state enterprises,” the blog said.