India may top remittances chart: World Bank

$71 bn likely via this route in 2014

India is likely to retain the top position in the global chart of remittances inflows at $71 billion this year but the growth would be only 1.5 per cent over the previous year's $70 billion, owing to firming up of the rupee against the dollar, the World Bank said.

Remittances to developing countries are expected to reach $435 billion, an increase of five per cent over $404 billion in 2013, the World Bank said in the latest issue of its Migration and Development Brief.

Globally, remittances are expected to rise 7.4 per cent to $582 billion in 2014, over $542 billion the previous year.

"With over 14 million people born in India living abroad in 2013 (estimated to be the largest emigrant stock in the world), India is projected to remain the largest recipient of officially-recorded remittance inflows, which may reach $71 billion in 2014," said the Bank.

However, remittances to India are likely to expand by only 1.5 per cent in 2014 as noted earlier.

This is also reflected in a dampening of non-resident Indian deposit flows so far this year, it added.

NRI deposits declined 29.8 per cent to $4.7 billion in the first four months of the current financial year against $6.7 billion in the corresponding period of FY14, according to the Reserve Bank of India data.

Kaushik Basu, senior vice-president and chief economist with the World Bank group, said: "India and China led the chart with projected remittance inflows of $71 billion and $64 billion, respectively, in 2014."

That way, the two Asian giants are likely to receive 23 per cent of the $584 billion of remittances across the globe in 2014.

Last year as well, India was the highest recipient of remittances, followed by China at $60 billion and the Philippines at $25 billion.

Basu said: "...India and the Philippines benefit from having migrants with the most diverse destination spread, thereby creating buffers against regional shocks."

India was projected to receive $71 billion in 2013 as well but ultimately it received $70 billion.

Despite the huge sums flowing into large countries, in many instances, they are a relatively small share of GDP.