Map: India tops 2013 global remittances with $70 bn, more than annual software exports

India’s economy may be in a wobbly state, but here’s something to cheer. According to a World Bank report,India leads the 2013 list of countries receiving global remittances, with a whopping $70 billion in its kitty; that’s a little more than the $65 billion earned from the country’s flagship software services exports.

India’s neighbour, China, follows second with $60 billion in global remittances. The report notes that international migrants from developing countries are expected to send $436 billion in remittances to their home countries in 2014, despite more deportations from some host countries.

For a look at some of the top countries receiving global remittances in 2013, take a look at the map below.(Click on the tab on the top right for a full-screen view.)

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In its latest issue of the Migration and Development Brief, the World Bank said this year’s remittance flows to developing countries will increase 7.8 percent over 2013’s figure $404 billion, and rise further to $516 billion by 2016. India accounted for about 17 percent of global remittances to developing countries in 2013.

Global remittances, including those to high-income countries, are estimated at $581 billion this year, from $542 billion in 2013, rising to $681 billion in 2016, the report added.

“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, followed by China with $60 billion and the Philippines with $25 billion,” said Kaushik Basu, Senior Vice President and Chief Economist of the World Bank, in a press release.

The depreciation of the Indian rupee during 2013 appears to have attracted inflows through a surge in the deposits of non-resident Indians rather than remittances, the World Bank said.

The bank said growth in remittances to the South Asia region has slowed, rising by a modest 2.3 per cent to $111 billion in 2013, compared with an average annual increase of more than 13 per cent during the previous three years.

The slowdown was driven by a marginal increase in India of 1.7 percent in 2013, and a decline in Bangladesh of 2.4 percent, the bank said.“In Bangladesh, the fall in remittances stems from a combination of factors, including fewer migrants finding jobs in the GCC countries, more migrants returning from GCC countries due to departures and deportations, and the appreciation of the Bangladeshi taka against the US dollar,” the bank said.

In addition to the top three, India, China and the Philippines, other main receivers of remittances were Mexico ($22 billion), Nigeria ($21 billion), Egypt ($17 billion), Pakistan ($15 billion), Bangladesh ($14 billion), Vietnam ($11 billion) and Ukraine ($10 billion).

In terms of remittances as a share of GDP, the top recipients were Tajikistan (52 percent), Kyrgyz Republic (31 percent), Nepal and Moldova (both 25 percent), Samoa and Lesotho (both 23 percent), Armenia and Haiti (both 21 percent), Liberia (20 percent) and Kosovo (17 percent).

With inputs from PTI