India is Anticipated to be the First Country in the World to Collect Remittances Worth $100 Billion from Migrant Workers Abroad

India, the third-largest economy in Asia, is expected to be the first nation in the world to receive $100 billion in remittances from migrant workers abroad this year.

Also, as the largest source country for remittances, the United States has surpassed the United Arab Emirates (UAE), according to the Reserve Bank of India's (RBI) monthly bulletin. In 2020–21, nearly one-quarter of all remittances to India came from the US, reverting to the pattern seen before 2008

Even last year, the biggest beneficiary of remittances worldwide was India. The country received $89.4 billion in 2021, according to the World Bank. Next with $53 billion in remittances each is China, followed by Mexico.

Several factors contributed to the decrease in remittances from the Gulf countries. Due to the recent economic recession, migration from India to the gulf countries has decreased. Then, factors including fluctuating oil prices, harsher labor rules, the implementation of nationalization legislation, higher work permit renewal costs, and taxes all came into play.

Remittances are financial transfers made to family, friends, or relatives who live in India by non-resident Indians (NRIs) who are employed abroad. Nearly 3% of India's gross domestic product comes from remittances (GDP). 

Also, the huge percentage of Indian migrants who make relatively high salaries in the United States, United Kingdom, and East Asia is expected to sustain a 4 percent increase in remittances to India the following year. 

In the Context of Nepal:

The percentage of remittances to the nation's GDP is anticipated to increase to 22% in 2022 due to a noticeable increase in remittance revenues. According to data compiled by Nepal Rastra Bank (NRB), the country had 20.8 percent remittance of its GDP last year.

A recent surge in remittance inflows has given Nepal some cushion. The three months macroeconomics data of the current fiscal year saw a 16.8% increase in receipts under this area, totaling Rs 281.05 billion. As a result, the country's balance of payments in the review period remained positive by Rs 12.43 billion.

According to the most recent World Bank research, Nepal's remittance inflow is anticipated to increase to US $8.5 billion, up from US $8.2 billion in 2021.