New Delhi
CNN Business
 — 

The in depth Indian diaspora will assist the South Asian nation attain a particular milestone this yr.

Asia’s third largest economic system is on monitor to obtain greater than $100 billion in yearly remittances in 2022, in accordance with a World Bank report printed Wednesday. This would be the first time a rustic will attain that milestone determine, it mentioned.

Remittances, or cash transfers from migrant staff to households again residence, are an essential supply of revenue for households in poorer nations. They not solely scale back poverty in growing nations however have additionally been related to increased faculty enrollment charges for kids in deprived households.

Over the previous few years, the World Bank report mentioned, Indians have moved to high-skilled jobs in high-income nations such because the United States, United Kingdom, and Singapore — from low-skilled employment in Gulf nations akin to Saudi Arabia, Kuwait and Qatar — and sending extra money again residence because of this.

India had acquired $89.4 billion in remittances in 2021, in accordance with the World Bank, making it the highest recipient globally final yr.

“Remittance flows to India were enhanced by the wage hikes and a strong labor market in the United States,” and different wealthy nations, the financial institution mentioned.

Despite being poised to achieve the file determine, India’s remittance flows are anticipated to account for under 3% of its GDP in 2022, it mentioned.

Apart from India, the opposite high recipient nations for remittances in 2022 are anticipated to be Mexico, China, and the Philippines. The subsequent yr could also be more difficult for Indian diaspora, nonetheless.

2023 will “stand as a test for the resilience of remittances from white-collar South Asian migrants in high-income countries,” due to rising inflation within the United States and slowing international development, in accordance with the report.

Globally, remittances to low and center revenue nations are anticipated to develop an estimated 5% to $626 billion this yr, it added.