India has secured its position as the leading recipient of remittances in 2023, as per the latest migration and development brief from the World Bank. The report indicates that India received a substantial $125 billion in remittances, with the United States maintaining its status as the primary source of remittances. Other countries that follow India in remittance receipts include Mexico ($67 billion), China ($50 billion), the Philippines ($40 billion), and Egypt ($24 billion). Notably, India has implemented savings programs to attract foreign currency deposits from non-resident citizens, resulting in non-resident Indian deposits in the country reaching $143 billion as of September 2023.
The World Bank brief also highlights the potential of diaspora finances in contributing to a country’s development and strengthening its debt position. It suggests that diaspora bonds can be structured to directly tap into diaspora savings held in foreign destinations, providing a stable and potentially long-term source of capital. Additionally, the report emphasizes the counter-cyclical nature of remittances, their indirect contribution to public finances, and their ability to enhance a country’s sovereign ratings, ultimately improving its debt repayment capabilities.
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