MIGRATION AND DEVELOPMENT BRIEF (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     27th June 2024        
Samadhaan

Context: According to the Migration and Development Brief of World Bank, growth in remittances to India is expected to decline significantly in 2024, dropping to 3.7% from 7.5% in 2023.


Migration and Development Brief

  • Prepared by: Migration and Remittances Unit, Development Economics (DEC), the research and data arm of the World Bank.
  • Published: Twice a year
  • Objectives: Aims to offer a comprehensive update on recent developments in migration and remittance flows globally.


Findings of the Migration and Development Brief of World Bank

  • Top Recipient Nation: India remains the leading recipient of remittances globally, surpassing other major recipients like Mexico, China, the Philippines, and Pakistan.
  • Emigrant Origins: India also maintains its status as the largest origin country for emigrants, with significant numbers migrating to various destinations globally.
  • Remittances in 2023: India received $120 billion in remittances in 2023, bolstered by robust labor markets in the US and Europe.
  • Projected Growth: Remittances are forecasted to increase to $124 billion in 2024 and further to $129 billion in 2025.
  • Diversification and Stability: India's migrant workforce, ranging from highly skilled migrants in OECD markets to less-skilled workers in GCC countries, provides stability to remittance inflows amidst external economic shocks.
  • Enhanced Remittance Channels: The India-UAE FTA supports remittance flows, leveraging local currencies for cross-border transactions and integrating payment systems between the two countries.

Remittance 

  • About: It is comprised of worker’s remittances, compensation of employees, and migrants’ transfers as documented in the IMF Balance of Payments.
  • Worker's Remittances: These are current transfers made by migrants who are regarded as residents in the source country.
  • Significance for Low and Middle-Income Countries: Remittances serve as a crucial source of household income in low and middle-income nations.
Samadhaan