What is remittance ?

Defination :

  • A remittance is a transfer of money by a foreign worker to an individual in his or her home country.
  •  Money sent home by migrants competes with international aid as one of the largest financial inflows to developing countries. 
  • Worker's remittances are a significant part of international capital flows especially in the case of labour-exporting countries.
  • Remittances are playing an increasingly large role in the economies of many countries, contributing to economic growth and to the livelihoods of less prosperous people (though generally not the poorest of the poor).

Top recipient countries:

  • 1. India     2. China   3. Philippines        4. France     5. Mexico          6. Nigeria     7. Egypt   
  • 8. Germany      9. Pakistan    10. Bangladesh

Highlights: 

  • According to the World Bank, India retained the tag of the world's largest destination for remittances with a bounty of $70.4 billion in 2014.
  • Remittance flows to India are more stable than other capital flows.
  • It is equivalent to 20% of foreign exchange reserves ($341 billion in FY15) and 2.5 times the FDI flows ($29 billion) to the country in 2014.
  • In 2014, the growth in remittances to India remained subdued at 0.6% compared to 1.7% in 2013.
  • The fall in oil prices does not appear to have reduced remittances from Gulf countries, especially to India and other South Asian countries.