According to the World Bank, India was the top receiver of remittance payments among all countries in the world in 2016. This means the nation had more people sending more money home from investments and careers abroad than any other country on earth, making it a large market for international money transfers. Ria Money Transfer clients have helped to contribute to this, as Ria makes it easy to send money online by making sure transfers are quick and reliable, and fees are easy to predict.
What Remittances Mean for Recipient Countries
Measuring remittance is a specific kind of assessment performed by the World Bank, and it gives a few insights into important economic factors in the recipient countries. Typically, when a country’s receipt of remittance payments goes up, it means the following things:
- Workers and investors are going abroad to build wealth, but they are sending it back home
- Local economies are stimulated by the influx of cash, leading to increased economic activity and investment
- Growth in local economies provides new opportunities, strengthening the likelihood that the country will itself become attractive to investors and workers
When you use Ria Money Transfer to send money to India and support your family at home, you help contribute to that pattern. When a country trends toward the top of the remittance list, it’s an indicator of a large injection of funds into that country’s local economy, and that means the rate of change in that virtuous circle of economic growth is more likely to pick up.
What Kinds of Cash Transfers Count as Remittance?
Not every transfer of funds between countries counts as a remittance payment. When measuring this phenomenon, the World Bank explicitly avoids counting direct investments and other transfers of funds that are primarily for business purposes. Instead, the increased economic activity being measured is related strictly to private transfers of wealth between individuals in families and other socially bonded groups. This includes not only payments to spouses, parents, and other relatives but also charitable giving.
In fact, holidays are an especially busy time of year for organizations such as Ria Money Transfer, with holidays leading to more people deciding to send money abroad. Similarly, during Ramadan, Pakistan and India see an influx of funds that includes both gifts and charitable donations from abroad.
India Is Likely To Dominate Remittance Payments for 2017 Too
While it’s probably going to be a few months or more before there is a full report available documenting remittance payments and receipts around the world, India is predicted to be the top recipient in 2017 as well. This is based on both the trends over the past few years and the size of the country’s lead over other top recipients of these kinds of payments. Projections have the 2017 numbers around $65 billion, which would be a significant increase over the $62.4 billion sent to the nation during 2016. So far, those estimates are based on rough calculations of early data, and they will be clarified in coming months. Predictions for 2018 are approximately 2.5 percent higher than the rough numbers for 2017.
Ria Money Transfer provides fast, efficient service to as many people who need to send money internationally as possible. They have expert staff with experience facilitating these transfers, and they work hard to make sure every transfer goes through as quickly as possible, because that money is needed at its destination. This allows clients all over the world access to efficient cash transfers with predictable, reasonable rates, making it easier than ever to help everyone at home no matter where you go.