According to a World Bank report, Indians are expected to receive $100 billion in remittances this year – the first time a single country has reached that number.
The increase was led by wage increases and strong labor markets in the US and other developed countries.
Overall, the amount of money sent home by migrants around the world increased by 5% in 2022.
Money is a crucial source of household income in low- and middle-income countries, says the World Bank.
Remittances are associated with improved health and social indicators, such as higher birth weight and higher school enrollment rates.
Other top receiving countries for remittances are Mexico, China, Egypt and the Philippines.
In recent years, many Indians have moved to high-paying jobs in high-income countries like the US, UK and Singapore, allowing them to send more money home.
The payments account for about 3% of India’s gross domestic product (GDP) – a measure of the size of a country’s economy.
While India and Nepal saw increases in remittances, other countries in South Asia saw falls of more than 10% over the last year, reflecting the end of government stimulus introduced during the pandemic.
Overall, remittances to low- and middle-income countries increased by 5% to around $626 billion (£510 billion) in 2022 – about half the growth rate of 2021.
The next year is expected to be more challenging due to rising prices and slower economic growth around the world.
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