Indians will send 23% less Money from Abroad, big loss to Economy Forecast

The economy of the world is going through a period of turmoil due to Corona virus infection. The impact of this crisis is also likely to affect the earnings of the overseas Indian people.

By the way, overseas Indians are at the forefront of sending money to their country. This is the reason that India has been at the top in terms of remittances sent by migrants for a long time. But this year, Corona virus infection is going to have an impact on remittances as well.

• By the way, in the matter of sending money to their country, the Indian Diaspora is at the forefront. This is the reason that India has been at the top in terms of remittances sent by migrants for a long time. But this year, Corona virus infection is going to have an impact on remittances as well.

• The World Bank has estimated that in 2020, remittance in India may come down by 23 percent. This year, overseas Indians can send remittances of $ 64 billion. A year ago, in 2019, an amount of 83 billion dollars was sent to the country. Last year, there was an increase of 6 percent in remittances.

• According to a statement issued by the World Bank, the world economy has been affected due to corona infection and lockdown. This is the reason that global remittances can fall by 20 percent this year. In the context of India, the remittance is estimated to be 23 per cent less. This is the biggest decline in the last several years.

What will Happen to the Neighboring Countries?

If we talk about India’s neighboring countries, Pakistan’s remittance can also fall by 23 percent and it will be around 17 billion dollars. A year ago, in 2019, $ 22.5 billion was sent by migrant Pakistanis.  Bangladesh is expected to receive $ 14 billion in remittances this year. This is 22 per cent less than a year ago. Similarly, the remittances in Nepal and Sri Lanka can fall by 14 percent and 19 percent respectively.

27.5% lower remittance in Europe-Central Asia

According to World Bank estimates, in Europe and Central Asia, remittances are estimated to be 27.5 percent. Similarly, 22.1 per cent in South Asia, 19.6 per cent in the Middle East and North Africa, may come down. In this case, Latin America and the Caribbean are estimated to lose 19.3 per cent.

What is remittance?

When a migrant sends money to his country via bank, post office or online transfer, it is called remittance. When an Indian worker, working in a Gulf country, sends money to his parents or family in India, that amount is kept in the category of remittance. The economy of the country benefits from remittances. Through this, we earn foreign exchange, which is a good thing for the economy.