India Sets Historic Record with Over $100 Billion in Remittances in 2022

United Nations: India has achieved a significant milestone by becoming the first country in the world to receive over $100 billion in remittances, according to the United Nations migration agency. In 2022, India received a staggering $111 billion in remittances, the largest amount recorded globally.

The International Organisation for Migration (IOM) highlighted this achievement in its World Migration Report 2024, released on Tuesday. The report noted that in 2022, India, along with Mexico, China, the Philippines, and France, were the top five countries in terms of remittance receipts.

“India was well above the rest, receiving more than USD 111 billion, the first country to reach and even surpass the USD 100 billion mark. Mexico was the second-largest remittance recipient in 2022, a position it also held in 2021 after overtaking China, which historically had been the second-biggest recipient after India,” the report said.

Historical data from the report showed that India has consistently been the top country receiving remittances, with amounts of $53.48 billion in 2010, $68.91 billion in 2015, and $83.15 billion in 2020, eventually crossing the $100 billion mark in 2022.

The report underscored that with a substantial number of migrant workers, Southern Asia receives some of the largest inflows of remittances globally. Countries such as India, Pakistan, and Bangladesh are among the top ten recipients of international remittances, emphasizing the importance of labor migration from this region.

“With India estimated to have received more than USD 111 billion in 2022, it is by far the largest recipient of international remittances in the world and the first country to ever reach that figure,” the report said. Pakistan and Bangladesh were the sixth and eighth largest international remittance recipients in 2022, receiving nearly $30 billion and $21.5 billion respectively.

The report, however, noted that while remittances provide crucial financial support for many people in the subregion, migrant workers from these countries continue to face numerous challenges, including financial exploitation, excessive debt from migration costs, xenophobia, and workplace abuses.

The Gulf States continue to be significant destinations for migrant workers, and the 2022 FIFA World Cup highlighted the vital role of migrant labor in these regions, as well as the associated rights violations. Migrants constitute a significant proportion of the population in many Gulf Cooperation Council (GCC) States, with the United Arab Emirates, Kuwait, and Qatar having migrant populations of 88%, 73%, and 77%, respectively.

Many migrants, hailing from countries such as India, Egypt, Bangladesh, Ethiopia, and Kenya, are employed in sectors like construction, hospitality, security, domestic work, and retail.

The report further added that nearly 18 million or 1.3% of India’s total population are international migrants, making India the origin of the largest number of international migrants globally. Significant Indian diasporas reside in countries such as the United Arab Emirates, the United States, and Saudi Arabia.

India also ranks as the 13th largest destination country for immigrants, with 4.48 million people. Notably, migration corridors such as India-UAE, India-US, India-Saudi Arabia, and Bangladesh-India are among the top 10 international country-to-country migration routes.

Mexico, now the second-largest recipient of international remittances, received over $61 billion in 2022, while China received about $51 billion, having been overtaken by Mexico in 2021. The decline in remittances to China has been attributed to demographic changes, including a shrinking working-age population and the country’s stringent zero-COVID policy.

The report also highlighted that Asian countries are the origins of the largest number of internationally mobile students. In 2021, over one million internationally mobile students came from China, the highest number globally, followed by India with around 508,000 students.

The United States is the most popular destination for international students, with over 833,000, followed by the UK, Australia, Germany, and Canada. China is also a significant destination for international students, particularly from countries such as the Republic of Korea, Thailand, Pakistan, and India.

The report noted that in Europe and Northern America, including the US, Canada, France, Spain, and Italy, as well as in India, there are more female than male international migrants. In contrast, countries like India, Bangladesh, and Pakistan have a higher proportion of male emigrants.

Irregular migration to the US remains a major policy issue, with increasing numbers of migrants from atypical origin countries. In 2022, there were 2.4 million encounters at the US-Mexico border, the highest on record, including many repeat attempts. Traditionally, most irregular migrants were from Mexico, Guatemala, El Salvador, and Honduras, but recent years have seen more arrivals from Venezuela, Cuba, and Nicaragua, as well as from Haiti, Brazil, India, and Ukraine.

The report attributed this shift in migration patterns partly to Title 42, which suspended the right to claim asylum under US and international law to prevent the spread of COVID-19.

The impact of the pandemic has been particularly harsh on Indian migrant workers, especially those in low-skilled jobs, informal sectors, or without proper documentation. Many faced job losses, wage theft, and a lack of social security, plunging them into debt and insecurity.

“The pandemic has had an overwhelming effect on internal labor migration patterns and has reshaped work in both rural and urban areas. There has been a decline of almost 10 percent in blue-collar workforce mobility towards cities, which has drastically cut the labor supply for major industries. The official estimate of reverse internal migration is 51.6 percent for men and 11 percent for women,” the report stated.

In summary, while India’s record-breaking remittance receipts highlight the critical role of its diaspora, the challenges faced by migrant workers underscore the need for better protections and policies to safeguard their rights and well-being.