Why in News?
India retained the top position as recipient of remittances with its diaspora sending about USD 69 billion back home last year.
FACTS FOR PRELIMS
i)According to the world bank Remittances to India picked up sharply by 9.9 percent, reversing the previous year’s dip, but were still short of USD 70.4 billion received in 2014.
ii)India continued to top in terms of receiving remittance, and was followed by China ($64 billion), the Philippines ($33 billion), Mexico ($31 billion), Nigeria ($22 billion) and Egypt ($20 billion)
iii)Global remittances(which include flows to high-income countries) grew 7 per cent to USD 613 billion last year, from USD 573 billion in 2016
iv)The upsurge is likely to continue into 2018 on the back of stronger economic conditions in advanced economies (particularly the U.S.) and an increase in oil prices that should have a positive impact on the GCC countries.
According to the IMF, “Remittances represent household income from foreign economies arising mainly from the temporary or permanent movement of people to those economies.”
Remittances are mainly derived from two items in the balance of payments framework: income earned by workers in economies where they are not resident (or from non-resident employers) and transfers from residents of one economy to residents of another.
Remittances may have a significant impact on poverty reduction and can finance economic growth in receiving economies.