MIGRATION, REMITTANCES AND DEVELOPMENT: INDIA'S SUPREMACY AND SUSTAINABILITY

DIMENSIONS OF MIGRATION 

 Human migration is an integral part of the development process. It is a mechanism for reallocating labour across economic sectors and geographical areas. The word migration  generally denote movement of people from one place to other.While movements within the same country  is referred as internal migration,  movements   across  one country to the other is termed as emigration or immigration depending on movements is externally or internally from abroad. When they work in their host place or host country they recieves their remuneration for work and when they sent money to the native  country it is termed as inward remittances.The  Inward remittances are transfers made by people working abroad to support their families in the home country. Inward rremittances can be optimally utilised for buttressing the balance of Payments position of the country through funding foreign exchange component to reduce current account deficit and to  correct disequilibrium in the financial sector. In fact migration makes very valuable contributions towards both poverty eradication and economic development in many countries. Migration often  brings new skills ,resources, dynamism and development etc. Not only the host country is benefitted by migration but also it provides generally income employment and balance of Payments support to the home country as well. According  to World bank's World Development Report 2023 there were 184 million migrants across globe and nearly 43 percent of them live in low and middle income countries. 

Existing geo political conflicts and tensions are likely to create complex migration pressures with regional security and strategic implications  for both international migration as well as domestic migrants, impinging  migration patterns. Migration issues are becoming more complex and urgent largely due to severe divergences  between and within countries  in terms of real wages, labour market opportunities, demographic patterns and climate costs. Migration can also largely be taken as a response to global shocks and imbalances in terms of massive gaps in income,living conditions, and wellbeing across countries. It is estimated that in 2020 about about  84% percent total migrants lived in wealthier nations than their own.Similarly climate change affected 3.5 billion people who are exposed to landslides, water shortages ,heat,, rising sea levels and extreme events like floods and tropical cyclones resulting in their dwindling domestic livelihood opportunities.

INFLOW OF REMITTANCES 

It has been observed that migrants are generally  attracted by both push and pull  forces to attain better opportunities offered by other countries.In any case  Inflow of remittances associated with migration is considered to be the most important benefit available to economies across the globe.Data indicated that in more than 60 countries remittances account for more than percent of GDP. and small and fragile economies are heavily dependent on  remittances. As  per World Bank's latest estimate in 2024 India recieved $ 129.1 billion accounting for 14.3% of global remittances.Remittances to other countries include Mexico $ 68 billion ,China $48 billion, Phillipines $ 40 billion and Pakistan $ 33 billion,as  against India $120 billion Mexico $ 66 billion,China $50 billion,Philippines $ 39 billion and  Pakistan $ 27 billion in  2023.It may be noted here that China occupied third position in remittances.In fact China 's share of global remittances grew from 1%  in early 2000s to over 10% by late 2010s. After 2020  China's share declined sharply leading to present 5.3%.Onthe other hand India has been recieving the largest share of  foreign remittances since 2008.  India's share more  or less  remained consistent at  double digit level since 2010.Lions share of remittances to India are contributed by OECD and GCC countries wherein USA ranked first followed by UAE, UK,Singapore and Saudi Arabia. Moreover the interlinking payment and messaging system and use of Dirhams and rupees with  UAE and remittances through formal channels with countries like Saudi Arabia, Kuwait, Oman and  Qatar, depreciation of rupee etc were contributory factors that contributed to inceased remittance flows to India.Significantly remittance flows to the country surpassed both FDI  flows to India and even the combined budget of Pakistan and Bangladesh. It has been observed that remittances flows to smaller countries like Lebanon  Tajikistan, Nicaragua, Samoa ,Tonga Honduras etc  surpassed 25% or more of their respective GDP. In contrast the share of remittances in India accounts for only 3.3% of GDP. In many low and middle income countries remittances had even surpassed  both Foreign Direct Investment (FDI) flows and Official Development Assistance (ODA) reciepts from abroad. ODA include development assistance provided in the form of grants,softloans,technical assistance, assistance to refugees etc.

SUSTAINABILITY OF INDIAN EMIGRATION 

India is set to reach the third largest fastest growing major global economy, with large scientific and technical manpower, provided by more skill development and above all a nation with largest share of global population coupled with wealthy and  rich demographic dividend. It  has been supplying manpower mainly to different regions and countries comprising of ageing developed countries, capital rich Gulf countries and many countries  of Africa, Asia and Australia which remain major destinations of emigration from India. Measures like liberalised  foreign exchange rate policy and adoption of fintech innovation in remittances added to the increased remittances to India Not only India remained the largest recipient of global remittances from 2008 to 2024, her share remained largely above 10% mark reaching 14.2 % in 2024.Migration is increasingly necessary for countries at all income levels making migration work better that  requires doing things differently.

Despite India being in the forefront of emigration stream scattered around the globe,  some observers believes that it is not a rosy picture and some clouds are looming around.As per the data supplied in the Parliament 16 lakh Indians have surrendered their Indian citizenship since 2011 and Indians have taken up foreign citizenship in 135 countries. Since technology has converted entire world into a tiny global village many  high networth Indians are disconnecting from their roots and opting for entirely new social and cultural eco system abroad. Many celebrities and High Networth Indian families also have taken up citizenship offered by Carribbean nations Antigua , Barmuda and Golden Visa offered by Spain, Greece and UAE. In any case such developments are a part of emigration process. Even after abolition of slavery and "indentured labour" in Colonial plantations and later among migration of educated professionals many opted for host country to settle down permanently. In many cases the business people settled abroad are mainly complaining about lack of ease of doing business facility  with too much bureaucratic  control, lack of transparency and multiplicity of rules and regulations In India. Obviously a research study to ascertain the extent of  veracity of such concerns and measures to increase emigration and remittance flows are very much appropriate to undertake.