India may be top recipient of remittances in 2012: World Bank

ET Bureau Nov 22, 2012, 01.41AM IST

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(India is expected to be the…)

MUMBAI: India is expected to be the top recipient of remittances from its Diaspora in 2012, according to a World Bank report.

The country is set to receive about $70 billion by the end of the year, with China coming second with remittances of $66 billion, according to the study. Philippines and Mexico, with $24 billion each, and Nigeria with $21 billion follow India and China on the list. The other large recipients include Egypt, Pakistan, Bangladesh, Vietnam, and Lebanon.

Over the years, remittances by global Indians have been a steady source of foreign exchange resources for the country. They are permanent inflows against the capital inflows, which are volatile in nature.

Together with NRI deposits, the Indian Diaspora has brought in nearly $135 billion this year. Outstanding NRI deposits are estimated at $35 billion. However, unlike remittances, most NRI deposits are reversible.

During the global financial crisis of 2008 and even earlier, which resulted in a global slowdown, remittances to India were not hit. Migrant workers are displaying tremendous resilience in the face of the continuing economic crisis in advanced countries," said Dilip Ratha, manager of the World Bank's Migration and Remittances Unit.

"Their agility in finding alternative employment and reduce personal expenses have prevented large-scale return to their home countries."

http://articles.economictimes.indiatimes.com/2012-11-22/news/35300757_1_nri-deposits-dilip-ratha-world-bank-s-migration