Remittances have become a major component of the balance of payments of nations. According to a report by the World Bank, India leads the current chart of remittance flows, becoming the largest remittances receiving country, with an estimated $72 billion (roughly Rs 4.3 lakh crore) in the year 2015, followed by China ($64 billion) and Philippines ($30 billion).
In an outward flow, the US was the largest remittance source country with an estimated $56 billion in outward flows in 2014, followed by Saudi Arabia ($37 billion), and Russia ($33 billion).
The report, produced by the World Bank Group's Global Knowledge Partnership on Migration and Development (KNOMAD) initiative said, “International migrants will send $601 billion to their families in their home countries this year, with developing countries receiving $441 billion”. The report also added. “At more than three times the size of development aid, international migrants' remittances provide a lifeline for millions of households in developing countries. In addition, migrants hold more than $500 billion in annual savings”.
As per the report, the top ten migrant source countries also include Mexico, Russia, Bangladesh, Pakistan, the Philippines, Afghanistan, Ukraine and UK, along with the countries mentioned above and the top ten migrant destinations are the US, Saudi Arabia, Germany, Russia, the UAE, UK, France, Canada, Spain and Australia.
India emerging as the top receiver of remittances is especially attributed to the large pool of migrants working across the world.