India Beats China in Receiving Remittance; NRIs Sent USD 62.7 Billion Back Home in 2016!
200 million immigrants globally sent $445 billion to their home countries as remittances in 2016. Among them, Indians were the #1 in sending remittance, as total of $62.7 billion was sent to India from abroad.
This way, India has beaten China in sending remittances.
However, the most interesting aspect of this news is that, for the first time, UN has admitted that remittances sent in by immigrants is actually uplifting poverty, across the world.
These data and observations have been revealed in the ‘One Family at a Time’ study, conducted by UN International Fund for Agricultural Development (IFAD).
The study on the trend of remittances sent in immigrants found that 80% of the $445 billion global remittances was sent to rural areas of developing countries, which helped to remove poverty.
Pedro de Vasconcelos, manager of IFAD’s Financing Facility for Remittances and lead author of the report said, “About 40% of remittances – $200 billion – are sent to rural areas where the majority of poor people live”, adding “Remittances are therefore critical to help developing countries achieve the Sustainable Development Goals (SDG),”
As per the report, the money received by families was majorly spent on food, health care, better educational opportunities and improved housing and sanitation.
Global Remittances in 2017: Interesting Facts
- In 2007, global remittances accounted to just $296 billion, which has increased to $445 billion in 2016, thereby registering a gradual growth of 4.2% annually
- 80% of the remittances is received by 23 countries, and the top 4 among these are India, China, the Philippines, Mexico and Pakistan
- Almost 50% of the global remittances sent out is done from 10 countries, and the top three countries are: USA, Russia and Saudi Arabia
- With $62.7 billion remittances sent, India was the #1 country in sending money back home, followed by China at $61 billion, Philippines at $30 billion and Pakistan at $20 billion.
- Continent wise, Asia is the region with most immigrants going out: 77 million
- Total of $244 billion was sent as remittance by Asian immigrants, which is an increase of massive 87%, compared to last year. Interestingly, migrants going out from Asia increased by only 33%. This means that Asian migrants are growing rich by working abroad.
- Overall, Asia accounted for 55% of global remittances received, and 41% of overall immigrants
- If we talk about only developing countries, remittances received has increased by 51% compared to last decade. Overall, $6.5 trillion in remittances is expected to be sent out to developing countries, between 2015 and 2030
- Overall, 200 million immigrants are supporting 800 million people in their home countries.
- In 2017, UN has estimated that one out of seven people will be sending remittances to their home country.
- Total earnings from immigrants is estimated to be $3 trillion annually, all over the world. Out of this, 80% remain in the host country.
IFAD President Gilbert Houngbo made an interesting observation in the report: “It is not about the money being sent home, it is about the impact on people’s lives. The small amounts of $200 or $300 that each migrant sends home make up about 60% of the family’s household income, and this makes an enormous difference in their lives and the communities in which they live..”
You can find the full report here.