India's vast diaspora will help the South Asian country reach a special milestone this year. Asia's third-largest economy will receive more than $100 billion in annual remittances in 2022, according to a World Bank report. This will be the first time the country has reached this milestone, CNN reports.
Remittances from migrant workers to families back home are an important source of income for households in poorer countries.
A World Bank report said that over the past few years, Indians have shifted to high-skilled jobs in high-income countries such as the United States, Britain and Singapore from low-skilled jobs in Gulf countries such as Saudi Arabia, Kuwait and Qatar - and sent home more money as a result.
India received $89.4 billion in remittances in 2021, making it the world's largest recipient last year, according to the World Bank.
"Remittance flows to India were boosted by rising wages and a strong labor market in the United States and other wealthy countries," the bank said in a statement.
Although India is poised to hit a record high, remittance flows in 2022 are expected to account for only 3 percent of its GDP, it said.
In addition to India, Mexico, China and the Philippines are expected to be the other major remittance-receiving countries in 2022. Next year, however, could be more challenging for the Indian diaspora.
According to the report, 2023 "will test the sustainability of remittances from white-collar South Asian migrants to high-income countries" because of rising inflation in the United States and slowing global growth.
Remittances to low- and middle-income countries are expected to grow by about 5 percent to $626 billion this year.