Remittances: Pain for India, China with Covid-19 striking across the world

Remittances are financial or in-kind transfers made by migrants directly to families or communities in their countries of origin. The World Bank compiles the data on international remittances, despite gaps because of differing definitions of migrants. The data, however, do not capture unrecorded flows through formal or informal channels, so the actual magnitude is likely larger than available estimates.

The data reflects an overall increase in remittances in recent decades, from $126 billion in 2000 to $689 billion in 2018. There was a 9 per cent jump in remittances in 2018, up from $633 billion in 2017. Seen in terms of nations, the figures are self-explanatory — its migrants across the world put India the top recipient.

With Covid-19 striking across the world, countries will face truncated remittances, but India and China will face the most pain. As migrant labourers return to Kerla from the Gulf and the US puts barriers through instruments like curtailing H1B visas, global movement of people will become harder, and less lucrative, while business slows down.

Analysis: World Migration Report 2020 and Aditi Phadnis