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India Makes History, Exceeds $100 Billion Remittance Mark

The report identifies India, Mexico, China, the Philippines, and France as the top five recipients of remittances in 2022…reports Asian Lite News

The United Nations migration agency reported that India reached a significant milestone in 2022 by receiving more than $111 billion in remittances, becoming the first country to surpass the $100 billion mark.

The International Organisation for Migration (IOM) unveiled its World Migration Report 2024, highlighting India’s exceptional feat among other notable trends in global migration.

In its comprehensive analysis, the report identifies India, Mexico, China, the Philippines, and France as the top five recipients of remittances in 2022. However, India stands out as the leader, far surpassing its counterparts with remittances exceeding USD 111 billion.

“India was well above the rest, receiving more than USD 111 billion, the first country to reach and even surpass the USD 100 billion mark. Mexico was the second-largest remittance recipient in 2022, a position it also held in 2021 after overtaking China, which historically had been the second-biggest recipient after India,” the report said.

This achievement underscores India’s dominance in the global remittance landscape, a position it has maintained consistently over the years. Notably, India was the leading recipient of remittances in 2010, 2015, and 2020, with figures steadily climbing to reach the unprecedented USD 111.22 billion mark in 2022.

The report emphasises the significance of Southern Asia as a key recipient of remittances, with India, Pakistan, and Bangladesh collectively ranking among the top ten recipients globally. The substantial inflow of remittances underscores the vital role of labour migration from the subregion.

“With India estimated to have received more than USD 111 billion in 2022, it is by far the largest recipient of international remittances in the world and the first country to ever reach that figure,” the report said.

Pakistan and Bangladesh also feature prominently as significant recipients of international remittances, ranking sixth and eighth, respectively, with remittances totalling nearly USD 30 billion and USD 21.5 billion in 2022.

However, amid these positive trends, the report sheds light on the challenges faced by migrant workers from Southern Asia. These challenges include financial exploitation, excessive debt due to migration costs, xenophobia, and workplace abuses, underscoring the vulnerabilities inherent in labour migration. The Gulf States emerge as crucial destinations for migrant workers, with the 2022 football World Cup accentuating the region’s reliance on migrant labour. Notably, migrants constitute 88 per cent, nearly 73 and 77 per cent of the national populations, respectively in the United Arab Emirates, Kuwait, and Qatar.

In the United Arab Emirates, migrants represent 88 per cent of the national population. In the United Arab Emirates, Kuwait and Qatar, migrants made up 88 per cent, nearly 73 and 77 per cent of the national populations, respectively.

Most migrants – many of whom come from countries such as India, Egypt, Bangladesh, Ethiopia and Kenya – work in sectors such as construction, hospitality, security, domestic work and retail. India, with a diaspora of approximately 18 million individuals, stands as the origin of the largest number of international migrants globally.

“In 2022, India, Mexico, China, the Philippines, and Egypt were (in descending order) the top five remittance recipient countries, although India was well above the rest, with total inward remittances exceeding USD 111 billion, the first country to reach and even exceed USD 100 billion,” the report noted.

These diasporas are dispersed across countries such as the United Arab Emirates, the United States, and Saudi Arabia, the report noted.

Moreover, India features prominently in international migration corridors, with significant migration flows observed between India and the United Arab Emirates, the United States, Saudi Arabia, and Bangladesh.

Furthermore, the report assesses the impact of the COVID-19 pandemic on migrant workers, particularly in India, where low-skilled migrants faced job losses, wage theft, and insecurity.

“The pandemic has had an overwhelming effect on internal labour migration patterns and has reshaped work in both rural and urban areas. There has been a decline of almost 10 per cent in blue-collar workforce mobility towards cities, which has drastically cut the labour supply for major industries. The official estimate of reverse internal migration is 51.6 per cent for men and 11 per cent for women,” the report said citing experts and official data.

Since 2000, the IOM has been publishing its flagship World Migration Reports biennially, offering comprehensive insights into global migration trends and challenges. (ANI)

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‘India has unexplored, unattended opportunities’

Hinting at a foray in India, Warren Buffett said it would not take much time before it pursues opportunities in the country…reports Asian Lite News

Legendary investor and Berkshire Hathaway Chairman and CEO Warren Buffett is bullish on India. Presiding over the company’s annual meeting on Sunday, the nonagenarian investor said there are loads of opportunities in India.

To a question on whether his company Berkshire was actively looking for opportunities in India, Buffett, without getting into specifics, said there are unexplored or unattended to opportunities and areas in India.”

Berkshire Hathaway’s business and investment model is focused on acquiring and managing businesses across multiple industries

“In India, I am sure that there are loads of opportunities in a place like India, and the question is do we have any advantage, in either insights into those businesses or contacts that will make possible for some transactions that participants in India would particularly want us to participate,” the nonagenarian investor said.

“I would say that’s something that more energetic management at Berkshire could pursue because we do have a reputation now and is known around the world and our Japanese experience has been fascinating. In that respect, so there may be an unexplored or unattended to opportunities and area (in India),” he added.

Hinting at a foray in India, he said it would not take much time before it pursues opportunities in the country He added Berkshire’s new management will decide on investments in India.

“We will see how the next management plays the game out at Berkshire and fortunately you don’t have too long to wait on that generally,” he said.

Firm GDP growth forecasts, inflation at manageable levels, political stability at the central government level, and appreciable central bank monetary policy, have all contributed to painting a bright picture for the Indian economy in recent quarters.

India’s GDP grew at a massive 8.4 per cent during the October-December quarter of the current financial year 2023-24, and the country continued to remain the fastest-growing major economy and is poised to maintain its growth trajectory going ahead.

India is set to remain the fastest-growing among major economies in 2024, according to latest International Monetary Fund’s latest World Economic Outlook. IMF, in its latest outlook, raised India’s growth projections for 2024 from 6.5 per cent to 6.8 per cent.

U.S. dollar banknotes in Washington. (Xinhua/Liu Jie/IANS)

India’s economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22, respectively.

India’s GDP is currently ranked 5th, after the US, China, Germany, and Japan, and is projected to become the third in a few years.

Meanwhile, Buffett addressed concerns about the US debt and inflation during Berkshire Hathaway’s annual meeting.

He emphasized the resilience of the dollar as a reserve currency and expressed confidence in the US economy despite the national debt.

“It won’t be the quantity of the national debt. There isn’t any alternative to the dollar as a reserve currency,” said Warren Buffet, Chairman and CEO of Berkshire Hathaway.

He also praised Federal Reserve Chairman Jerome Powell, acknowledging his wisdom and highlighting the limitations of monetary policy in addressing fiscal challenges.

“Jerome Powell is not only a great human being but a very wise man. But he doesn’t control fiscal policy. Every now and then, he sends out a disguised plea, saying please pay attention to this,” said Buffet.

During the meeting, he also raised apprehensions about the potential consequences of unchecked inflation on the global economic landscape. He cautioned against allowing inflation to spiral out of control, warning that it could pose a threat to the entire world’s economic stability.

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