With over $21 bn in kitty, India top of heap in foreign remittances

Washington, Nov 17 | Updated: Nov 18 2005, 06:13am hrs
With recorded inflows of $21.7 billion, India is among the top three countries worldwide to receive the maximum amount of remittances along with China and Mexico.

According to the World Banks Global Economic Prospects (GEP) report for 2006, China received $21.3 billion and Mexico $18.1 billion in 2004.

While estimating the overall growth in South Asia at 6.9% in 2005, up from 6.8% in 2004, the report said this years performance reflects stable growth of about 7% in India.

Of the other South Asian countries, the report said Pakistan received remittances worth $3.9 billion and Bangladesh $3.4 billion. Sri Lankas remittance receipts were larger than its tea exports, and in Nepal, remittances accounted for nearly 12% of its GDP.

The report pointed out that remittances sent from developing countries represent 30-45% of the total remittances.

It forecasts that South Asia will receive some $32 billion in remittances this year, a 67% increase from 2001. Remittances recorded worldwide in 2005 are estimated to exceed $232 billion. Of this, developing countries are expected to receive $167 billion, more than twice the level of development aid from all sources, the report added.