INDIA LEADS ON REMITTANCES

NEW DELHI: Non-resident Indians (NRIs) and expats continued to help India’s foreign exchange base in 2013, especially in a year in which the rupee hit lifetime lows against the US dollar. India remained the highest recipient of remittances with $70 billion in 2013, followed by China with $60 billion and Philippines with $25 billion, according to the World Bank’s annual assessment.

India had received $69 billion in remittances in 2012.

Interestingly, at $70 billion, India’s remittances received were higher than the $65 billion that the country earned from its flagship software services exports in 2013.

T he l atest i ssue of t he Migration and Development Brief by the World Bank said that in 2014, inter national migrants from developing countries are likely to send $436 billion in remittances to their home countries, a 7.8% rise over 2013.

“Remittances have become a major component of the balance of payments of nations. India led the chart of remittance flows, receiving $70 billion last year (2013), followed by China with $60 billion and the Philippines with $25 billion,” said Kaushik Basu, senior vicepresident and chief economist, World Bank.

However this year, global remittances, including those to high-income countries, are estimated at $581 billion against $542 billion in 2013.

A senior finance ministry official said that the high volume of remittances have significantly helped in cushioning the country’s current account deficit —the difference between inflows and outflows of a foreign currency.