Saturday, May 25th, 2024

India sets record with remittances to exceed USD 111 billion in 2022: UN report

India has achieved a historic feat by receiving remittances of over US$111 billion in 2022, the first instance of any country crossing the US$100 billion mark, the UN migration agency said in a report.

The International Organization for Migration (IOM) unveiled its World Migration Report 2024, highlighting India’s extraordinary achievement among other notable trends in global migration.

In its comprehensive analysis, the report has identified India, Mexico, China, the Philippines and France as the top five recipients of remittances in 2022. However, India stands out as a leader with remittances exceeding USD 111 billion, far ahead of its counterparts.

“India was way above the rest by receiving over USD 111 billion, the first country to reach and surpass the USD 100 billion mark. Mexico was the second-largest remittance recipient in 2022, the report said, overtaking China which it also held in 2021, which was historically the second-largest recipient after India.

This achievement underlines India’s dominance in the global remittance landscape, a position it has maintained consistently over the years. Notably, India was the leading recipient of remittances in 2010, 2015 and 2020, with the figures rising steadily to reach an unprecedented US$111.22 billion in 2022.

The report emphasizes the importance of Southern Asia as a major recipient of remittances, with India, Pakistan and Bangladesh collectively among the top ten recipients globally. The substantial flow of remittances underlines the important role of labor migration from the subregion.

“India is projected to receive more than US$111 billion in 2022, making it by far the largest recipient of international remittances in the world and the first country to reach this figure,” the report said.

Pakistan and Bangladesh also feature prominently as important recipients of international remittances, ranked sixth and eighth respectively, with total remittances expected to be around US$30 billion and US$21.5 billion in 2022.

However, amid these positive trends, the report highlights the challenges faced by migrant workers in Southern Asia. These challenges include financial exploitation, excessive debt due to migration costs, xenophobia and workplace abuse, underscoring the vulnerabilities inherent in labor migration.

The Gulf states have emerged as important destinations for migrant workers, with the 2022 Football World Cup increasing the region’s dependence on migrant workers. In particular, expatriates in the United Arab Emirates, Kuwait and Qatar constitute 88 percent of the national population, about 73 and 77 percent respectively.

In the UAE, expatriates represent 88 percent of the national population. In the United Arab Emirates, Kuwait and Qatar, expatriates constitute about 88 percent, 73 and 77 percent of the national population respectively.

Most migrants – many of whom come from countries such as India, Egypt, Bangladesh, Ethiopia and Kenya – work in sectors such as construction, hospitality, security, domestic work and retail. India, with a diaspora of approximately 18 million individuals, is the source of the largest number of international migrants globally.

“In 2022, India, Mexico, China, Philippines and Egypt (in descending order) were the top five remittance receiving countries, although India was well above the rest, with total inward remittances at more than US$111 billion, the first country to reach And even more than US$100 billion,” the report said.

The report said that these migrants are spread across countries like the United Arab Emirates, the United States and Saudi Arabia.

Furthermore, India features prominently in international migration corridors, with significant migration flows observed between India and the United Arab Emirates, the United States, Saudi Arabia, and Bangladesh.

Additionally, the report assesses the impact of the COVID-19 pandemic on migrant workers, particularly in India, where low-skilled migrants faced job losses, wage theft and insecurity.

“The pandemic has had a tremendous impact on internal labor migration patterns and has reshaped work in both rural and urban areas. Mobility of the blue-collar workforce to cities has declined by about 10 percent, drastically cutting the labor supply for key industries. The report, citing experts and official figures, said the official estimate of reverse internal migration is 51.6 percent for men and 11 percent for women.

Since 2000, IOM has been publishing its flagship World Migration Report biennially, which provides comprehensive insight into global migration trends and challenges.

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