Flurl

  • Home
  • About
  • Traveling
  • Lifestyle
  • Technology
  • Successful
  • Spots
  • Healthy
  • Decor
  • Blog
  • Business
  • Contact Me

4 Reasons Why India Remains The Globe’s Biggest Recipient Of Remittance Payments

Blog

2 May

With remittances at an all-time high, do you know which the country is currently receiving the lion’s share of payments today?

Although not representing the bulk of the country’s GDP, a recent World Bank report notes that India received $69 billion in 2017 from remittances alone.

Fueled by payments from expats in the UAE, Saudi Arabia and the United States, India is a well-known case of a country reliant on money abroad. Given that sending remittances back to India is easier than ever as such payments go up globally, perhaps that $69 billion figure doesn’t come as too much of a surprise.

That said, boasting a massive workforce of over 500 million people (among a population of 1.3 billion) , there’s no denying that India is somewhat of a paradox in terms of their reliance on remittance. There is wealth and widespread work available within the country, so why the stagnation?

Fair question. That’s why we’ve assessed five major reasons why India needs these payments so much and why aid abroad is considered a necessity.

Income Inequality

Simply put, India is cited as one of the largest cases of income inequality worldwide. Even with the ever-changing definition of what’s considered below the poverty line, approximately one-in-five people living in India fall under that category.

This income inequality has led to a lack of public spending on programs to get people out of poverty. Combined with a questionable tax code, it’s no surprise that many migrants make their way to the UAE or Saudi Arabia for opportunities in search of a more level playing field economically.

High Population

Boasting well over one billion people, India’s population is often noted as contributing factor toward the country’s poverty problem. However, this argument does have some holes when compared to the likes of China which also houses a massive population minus the economic woes.

Chalk it up to a general lack of resources and heavy competition for the good-paying jobs that are available. Again, this makes going abroad an attractive option in fields or areas which are quite literally overcrowded.

Lack of Growth

On a similar note, India’s poverty profile sheds insight on the fact that upward movement economically is nearly impossible. Once people find themselves in poverty, it’s nearly impossible to get out of it.

Think about it. With lack of basic resources such as clean drinking water or a formal education in extreme cases, how could someone truly expect to escape their situation?

The options available are to either try one’s luck in the city or look elsewhere, both of which might be easier said than done for unskilled workers with limited funds.

Regulations and Widespread Corruption

Finally, a combination of heavy regulations and general corruption make it difficult for those looking to do business in India. These instances are well-documented in a sort of “rich get richer, poor get poorer” situation. While the country is taking steps to fight corruption, only time will tell how these efforts play out.

While there’s no denying that India is a country with a rich culture that certainly has its wealth and respective industries, the facts also spell out a major problem in terms of income inequality. With these facts in mind, it’s clear why remittances remain so important to its natives.

 

Tweet
Pin
Share
0 Shares

Leave a Comment

« What Does Gutter Cleaning Involve?
Ways To Maintain Your Mental Health »

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

About US

Hey I’m Samantha, but everyone calls me Sam. I have a love for loud, heavy music and writing. I am one of those responsible bad asses that everyone thinks is scary, but when you get to know me you realize I’m super nice! Read More…

View My Blog Posts

Archives

  • January 2021 (11)
  • December 2020 (11)
  • November 2020 (7)
  • October 2020 (10)
  • September 2020 (14)
  • August 2020 (30)
  • July 2020 (15)
  • June 2020 (24)
  • May 2020 (15)
  • April 2020 (24)
  • March 2020 (30)
  • February 2020 (35)
  • January 2020 (20)
  • December 2019 (31)
  • November 2019 (21)
  • October 2019 (22)
  • September 2019 (23)
  • August 2019 (33)
  • July 2019 (57)
  • June 2019 (31)
  • May 2019 (33)
  • April 2019 (23)
  • March 2019 (26)
  • February 2019 (25)
  • January 2019 (25)
  • December 2018 (18)
  • November 2018 (20)
  • October 2018 (26)
  • September 2018 (21)
  • August 2018 (13)
  • July 2018 (27)
  • June 2018 (29)
  • May 2018 (25)
  • April 2018 (38)
  • March 2018 (59)
  • February 2018 (59)
  • January 2018 (45)
  • December 2017 (10)
  • November 2017 (18)

Popular Posts

NEWSLETTER

Recent Posts

  • Why Use An E Cigarette Over a Traditional Tobacco Cigarette?
  • Content Marketing or PPC: Which Is Best for Your Brand?
  • 3 Tips For Decorating A Home For Someone With Mobility Issues
  • How to Select the Right Fintech Provider for Opting a Personal Loan?
  • 3 of the Most Beautiful Places to Cycle in Quebec
Flurl

About US

Hey I’m Samantha, but everyone calls me Sam. I have a love for loud, heavy music and writing. I am one of those responsible bad asses that everyone thinks is scary, but when you get to know me you realize I’m super nice! Read More…

View My Blog Posts

Recent Posts

  • Why Use An E Cigarette Over a Traditional Tobacco Cigarette?
  • Content Marketing or PPC: Which Is Best for Your Brand?
  • 3 Tips For Decorating A Home For Someone With Mobility Issues
  • How to Select the Right Fintech Provider for Opting a Personal Loan?

Let’s Connect

  • Email
  • Facebook
  • Google+
  • Instagram

Copyright © 2021 · Refined theme by Restored 316