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

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.