Thursday, December 8 2005 15:07 Hrs (IST) - World Time -

New Delhi: Indians working abroad sent a whopping 21.7 billion dollars to their kins in 2004, making the country highest recipient of remittances worldwide, a World Bank report said today (Dec 8,2005).

Remittance inflows to India was higher than China (21.3 billion dollars), Mexico (18.1 billion dollars), France (12 billion dollars and Philippines (12 billion dollars), the World Bank report on Global Economic Prospects said today.

Among South Asian nations, Indian migrants sent back home more than five times than their counterparts in Pakistan (3.9 billion dollars) and Bangladesh (3.4 billion dollars).

With rise in migration of workers across the borders, remittances worldwide are set to touch 232.8 billion dollars this year from 225.8 billion dollars in 2004.

"Of this, developing countries are expected to receive 167 billion dollars, more than twice the level of development aid from all sources," it said.

Remittances to developing nations were at 160.4 billion dollars last year.

"Remittances sent through informal channels could add at least 50 per cent of the official estimate, making remittances the largest course of external capital in many developing nations," it said.

"The increase in remittances reflected a rise in migration, which can generate substantial welfare gains for migrants and their families, as well as the home country, "the bank said.

"With the number of migrants worldwide now reaching almost 200 million, their producitivity and earnings are a powerful force for poverty reduction," World Bank Chief Economist Francois Bourguignon said.