Indians working across the globe sent home USD 62.7 billion in the year 2016, making India the top remittance-receiving country, as per a United Nations report titled ‘Sending Money Home: Contributing to the SDGs, one family at a time’.
The study was conducted by the UN International Fund for Agricultural Development (IFAD).
The study went on to say that 200 million migrants globally sent more than USD 445 million in 2016 as remittances to their families, helping to lift millions out of poverty.
The first-ever study highlights the role these funds play in helping development countries attain the UN Sustainable Development Goals (SDGs).
Key highlights of the report
• Global remittances to developing countries increased by 51 per cent, while the number of migrants from these same countries increased by 28 per cent and the populations of those countries of origin increased by only 13 per cent.
• Remittances to, and migration from, the AsiaPacific region reflects dynamic change during this period. Inflows to the region increased much faster (87 per cent) than its migration (33 per cent).
• In comparison, European remittances (5 per cent) and migration (19 per cent) had the smallest increases of any region.
• These numbers also indicate that individual migrants from Asia-Pacific are sending on average more money home on a regular basis, while the reverse is true for migrants in Europe, who are sending less.
• Growth in remittance flows to Africa (36 per cent), Latin America and the Caribbean (18 per cent), and the Near East and Caucasus (37 per cent) are consistent with their increase in migration, respectively 33 per cent, 21 per cent and 38 per cent.
• About 40 per cent of remittances – USD 200 billion – are sent to rural areas where the majority of poor people live.
• There are about 200 million migrants from low and middle-income countries, who send money to their families back home.
• An estimated 800 million people worldwide are directly supported by remittances.
• Between 2015 and 2030, an estimated USD 6.5 trillion in remittances will be sent to low-and middle-income countries.
• Most of these resources will be used by remittance-receiving families to reach their own individual goals: increased income, better health and nutrition, educational opportunities, improved housing and sanitation, entrepreneurship, and reduced inequality.
• Regular remittances lift most families above the poverty line and help them avoid falling back into “poverty traps.”
• About three quarters of family remittances are used to cover immediate basic needs (food, shelter and recurring bill payments).