According to the World Bank, India has surpassed Mexico as the top remittance receiving country in 2021, pushing China to third place. In 2021, India received remittances totaling more than $89 billion, an increase of 8% above the $82.73 billion received in 2020. Despite the fact that the world was significantly hit by Covid in 2020, remittances were somewhat higher than the $82.69 billion in the non-Covid year of 2019.
- The dropping value of the rupee against the dollar accounts for some of the increase.
- Inbound remittances to India will continue to climb this year, aided by one of the lowest transaction costs in the world.
- The average cost of transferring $200 was $6 globally, but it was the cheapest to send money to South Asia (4.3 percent) and the most expensive to send money to Sub-Saharan Africa (7.3 percent) (7.8 percent).
- Remittances to low- and middle-income countries (LMICs) are predicted to rise by 4.2 percent in 2022, reaching $ 630 billion.
- This follows a strong 8.6% increase in 2021, when remittance flows totaled $605 billion, far above the World Bank’s forecast.
- Remittance inflows into South Asia increased by 6.9% in 2021.