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NEW YORK: India’s remittances are expected to cross $71 billion in 2013, making it the top recipient of money from Indians abroad, says the World Bank in its annual forecast.
China ($60 billion), the Philippines ($26 billion), Mexico ($22 billion), Nigeria ($21 billion), and Egypt ($20 billion) will be the other top recipients of remittances from overseas.
“In India, remittances are larger than the earnings from IT exports. With the weakening of the Indian rupee, a surge in remittances is expected as nonresident Indians take advantage of the cheaper goods, services and assets back home. Remittances to India are expected to reach $71 billion in 2013,’’ says the latest issue of the World Bank’s Migration and Development Brief.
Interestingly, NRIs and migrant workers from India will send more than three times the FDI India is expected to get in 2013, the World Bank says.
As World Bank chief economist Kaushik Basu said of remittances to India, “To put this in perspective, this is just short of three times the FDI it (India) received in 2012,” he said.
For countries such as Bangladesh, Nepal, Pakistan and Sri Lanka, foreign remittances are a lifeline as these are larger than the national foreign exchange reserves of these countries.
In all, the developing countries are expected to receive $414 billion in remittances in 2013. The figure is expected to touch $540 billion by 2016.
Globally, 232 million international migrants are expected to remit earnings worth $550 billion this year, and over $700 billion by 2016, says the report.