WB predicts 50% drop in Indian remittances growth for 2024
New Delhi: The World Bank (WB) has predicted more than 50 per cent drop in foreign remittances of India, saying, “the diversification of India’s migrant pool between a large share of highly skilled migrants employed mostly in high-income OECD (Organization for Economic Cooperation and Development) markets, and the less-skilled migrants employed in GCC markets is likely to lend stability to migrants’ remittances in the event of external shocks.”
According to Kashmir Media Service, the Word Bank revealed that the remittance flows from the UAE to India, comprising 18 per cent of total remittances and being the second-largest source after the US, was bolstered by the February 2023 free trade agreement (FTA).
“The latter (FTA) established a framework to promote the use of local currencies for cross-border transactions and cooperation for interlinking payment and messaging systems between India and the UAE. The use of dirhams and rupees in cross-border transactions is instrumental in channeling more remittances through formal channels. In addition to the UAE, Saudi Arabia, Kuwait, Oman and Qatar account for 11 per cent of India’s total remittances,” it added.
