Editorial: Remittances cross a milestone
India must address challenges being faced by its nationals living abroad, especially of exploitation at workplaces
Emerging as the world’s largest recipient of inward remittances — crossing over $111 billion in 2022 — India has every reason to celebrate the achievement. It underscores the key role of Indian migrant workers globally in strengthening our economy and reflects the strong bond between the expatriates and their homeland. At the same time, the new milestone of remittances is also a reminder that the country’s public policies must focus on addressing the challenges being faced by Indian nationals living abroad, especially the instances of exploitation and discrimination at workplaces. The ‘World Migration Report 2024’ by the International Organisation for Migration (IOM), a United Nations body, lists India, Mexico, China, the Philippines and France as the top remittance recipient countries. India’s steady ascent on this score is a matter to be proud of. The United Arab Emirates (UAE) remains the top destination, accounting for 3.47 million Indians followed by 2.7 million in the United States and 2.5 million in Saudi Arabia. With approximately 18 million international migrants, India has the largest diaspora globally and foreign remittances account for nearly 3% of the country’s GDP. The report highlighted the steady growth of remittances to India over the years. In 2010, India received $53.48 billion in remittances, which grew to $68.91 billion in 2015, $83.15 billion in 2020 and $111.22 billion in 2022. While remittances are a lifeline for many families back home in India, the migrant workers, in their adopted countries, often face financial exploitation, excessive debt due to migration costs, xenophobia and workplace abuse.
The UN report also highlighted the risks of financial exploitation and excessive debt due to migration costs. Unscrupulous job consultants and exploitative employers make the lives of many Indian migrant workers, particularly in the Gulf countries, miserable. Despite efforts by the central and State governments and also voluntary organisations, violations persist in the Gulf Cooperation Council states. The Covid-19 pandemic has exacerbated the vulnerabilities of migrant workers. Loss of jobs, wage theft and a lack of social security have plunged many into deep insecurity and debt. The phenomenon of reverse internal migration signals a significant shift in labour dynamics, impacting industries reliant on migrant workers. The UN report also reveals trends in international student mobility, with China and India emerging as key source countries. The changing landscape of migration necessitates concerted efforts to protect the rights and well-being of migrant people. Addressing issues such as labour exploitation and access to social protection, and ensuring safe and orderly migration pathways are imperative for sustainable development and inclusive growth. While international migration remains a driver of human development and economic growth, challenges persist. With an estimated 281 million international migrants worldwide, the number of displaced individuals due to conflict, violence, disaster and other reasons has surged to the highest levels in modern-day records, reaching 117 million.
