Remittances to India expected to rise by more than 15 per cent
The annual report of the Central Bank of Oman reflected the large contribution of Indian expats in terms of remittances
Times News Service
MUSCAT: Remittances to India by country’s large diaspora community are expected to reach US$79.5 billion, according to the World Bank.
In the World Bank’s Migration and Development Report, the global body projects remittances to India to rise 15.2 per cent in 2018 to $79.5 billion.
The Central Bank of Oman’s annual report reflected the large contribution Indian expats are making in terms of remittances, with over OMR3,774 million being sent back to their home country in 2017.
Another report recently published by the Reserve Bank of India listed Oman as one of India’s seven largest remittance streams, with outflows from the Sultanate totalling three per cent of all remittances India received during the 2016-17 calendar year.
The growth detailed in the World Bank’s report will see India remain the world’s largest recipient of remittances, ahead of China ($67.4 billion) and Mexico ($33.7 billion), in second and third place, respectively.
According to the World Bank, floods in the state of Kerala likely helped boost remittance figures, as members of the diaspora community sent financial help to their families back home.
Additionally, South Asian countries had the lowest average remittance costs of any world region (at 5.4 per cent) in the third quarter of 2018.
Overall, remittances to South Asia are projected to rise by 13.5 per cent in 2018, higher than the 5.7 per cent increase witnessed in 2017. The upsurge is credited to stronger economic conditions in high-income economies, especially the United States, as well as the increase in oil prices up to October 2018, which had a positive impact on remittance outflows from the Gulf Cooperation Countries.
In Pakistan, remittance growth is expected to reach 6.2 per cent or $20.9 billion in 2018 as a result of significant declines in inflows from Saudi Arabia, the country’s largest remittance source. Remittances to Bangladesh, on the other hand, are projected to rise by 17.9 per cent, reaching $15.9 billion.
Remittance growth for South Asian countries is expected to slow down in 2019 to 4.3 per cent as a result of moderate growth in high-income countries and slowing migration to the GCC.
Despite the uptick in remittances, South Asia saw a drop in migrant worker deployments due to lower demand in the GCC.
In India, the number of lowskilled emigrants seeking mandatory clearance for emigration fell by 12 per cent in the first three quarters of 2018 compared to the same period last year.
In Pakistan, the number of workers registered for overseas employment fell 41 per cent compared to the previous year.
Additionally, migrant worker deployments from Bangladesh also dropped by 25 per cent during the same period.