India to receive record remittances but experts worry CAD will still widen

Of $90 billion remittances that India is expected to receive in 2022, only $27.4 billion has come in the first half of the year

India is likely to receive $100 billion in remittances this calendar year but experts say the record inflow may not be able to tame the widening current account deficit (CAD).

According to the latest World Bank report titled Migration and Development Brief, India’s remittances are expected to reach the $100-billion milestone in 2022 due to wage hikes and a strong labour market in the US and other OECD countries. This represents a 11.8 per cent growth over $89.4 billion received by India in 2021. In 2020, India received $83.1 billion in remittances.

For CAD, net remittances, which are the balance