Remittances To India Rose 2.5 Times In Decade To USD 151 Billion: UN Agency

(MENAFN- IANS) United Nations, Sept 14 (IANS) Remittances to India, which is the world's largest recipient, rose significantly by more than two-and-a-half times in the last decade, a UN agency said on Monday.

Private remittances went up to USD 151 billion last year from USD 63 billion in 2016, according to the UN's International Fund for Agricultural Development (IFAD).

The amounts represent the money sent home by the diaspora privately and do not include foreign direct investments or other institutional transfers.

Globally, the remittances reached USD 728.6 billion last year – almost double the figure of 2016, and the report shows how these flows help households meet essential needs, respond to crises and uncertainty, and build economic resilience, IFAD said.

IFAD President Alvaro Lario said,“As remittances help families meet their basic needs, they are also building financial growth and resilience to shocks".

“Their potential benefits are greatest when families have access to affordable and trusted financial services, together with the knowledge, freedom and appropriate options to use their resources according to their own needs and aspirations,” he added.

The report said that India's Aadhaar digital identity system and Unified Payments Interface (UPI) helped get the money to the recipients and shows "the value of strong domestic digital foundations".

The report said that diaspora contributions go beyond just remittances, especially through digital connectivity.

"Professional expertise, research collaboration, mentoring, technology transfer, international business networks and philanthropic engagement all contribute to development in ways that are difficult to measure, but that can offer catalytic impact", IFAD said.

"Digital connectivity has expanded these opportunities, allowing many migrants to contribute knowledge and expertise remotely while remaining economically active abroad," it said.

The report noted that the Gulf countries were an important source of remittances for India and other South and South-Eastern Asian countries, supporting millions of households there.

But it cautioned, "This concentration creates both opportunity and exposure. Strong demand for migrant labour can sustain employment and remittance growth, while disruptions to recruitment, economic activity or transport can quickly affect workers and their families".

However, it said that remittances have stayed steady despite the "recent shocks".

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