Remittances To India Hit $151 Billion, Up 2.5 Times In A Decade

NEW YORK, NY- Remittances to India, the world’s largest recipient, rose to $151 billion last year from $63 billion in 2016, according to the UN’s International Fund for Agricultural Development.

The figures represent money sent home privately by the Indian diaspora and do not include foreign direct investment or other institutional transfers.

Globally, remittances reached $728.6 billion last year, nearly double the 2016 figure. IFAD said these flows help households meet essential needs, respond to crises and uncertainty, and build economic resilience.

“As remittances help families meet their basic needs, they are also building financial growth and resilience to shocks,” IFAD President Alvaro Lario said.

“Their potential benefits are greatest when families have access to affordable and trusted financial services, together with the knowledge, freedom and appropriate options to use their resources according to their own needs and aspirations,” he added.

The report highlighted India’s Aadhaar digital identity system and Unified Payments Interface, saying they have helped get remittances to recipients and demonstrated “the value of strong domestic digital foundations”.

IFAD said diaspora contributions extend beyond remittances, particularly through digital connectivity.

“Professional expertise, research collaboration, mentoring, technology transfer, international business networks and philanthropic engagement all contribute to development in ways that are difficult to measure, but that can offer catalytic impact,” IFAD said.

“Digital connectivity has expanded these opportunities, allowing many migrants to contribute knowledge and expertise remotely while remaining economically active abroad,” it added.

The report noted that the Gulf countries are an important source of remittances for India and other South and Southeast Asian countries, supporting millions of households.

But IFAD cautioned that this concentration also creates exposure to disruptions.

“This concentration creates both opportunity and exposure. Strong demand for migrant labor can sustain employment and remittance growth, while disruptions to recruitment, economic activity or transport can quickly affect workers and their families,” it said.

Despite these risks, IFAD said remittances have remained steady despite “recent shocks”. (IANS)