Arrangement of various world currencies including Chinese Yuan, Japanese Yen, US Dollar, Euro, British Pound, Swiss Franc and pictured in Warsaw
Brexit cost world equity market a loss of $2.1 trillion. Picture: Arrangement of various world currencies including Chinese Yuan, Japanese Yen, US Dollar, Euro, British Pound, Swiss Franc and pictured in Warsaw, January 26, 2011.REUTERS

Migrant Indians are likely to send more money home this year with the World Bank estimating that the remittances to India will rise by 2.5% in 2015.

The increase in remittances is expected despite efforts by slowing economies in Europe, particularly Russia, to curtail their outflows.

India topped the list of global remittances in 2014, with migrant Indians sending $70 billion back to the country, according to a World Bank report. The projected 2.5% increase in remittances to India in 2015 is far above the 0.6% increase witnessed last year.

"Stronger remittance growth in India reflects improving economic prospects in the United States and continued fiscally-supported economic resilience in the GCC (Gulf Cooperation Council)," the World Bank said.

Saudia Arabia, the US, Germany, Russia and the United Arab Emirates (UAE) continued to be the top five migrant destination countries for remittances to India in 2014.

"The recent depreciation of the Indian rupee may have boosted investment-oriented remittances to India," the Bank said.

Accounting for about 3.7 per cent of the country's nearly $2 trillion GDP, inflows in the form of remittances act a cushion to absorb any shock to India's economy.

However, the World Bank expects the regional growth rate of remittances to moderate to about 4% over the next two years, partly due to deceleration in remittances to Nepal and Pakistan following a spike in flows after the earthquake.

In 2014, China, Philippines, Mexico and Nigeria, apart from India, were the top five remittance recipient countries, in terms of value of remittances. India's largest neighbour China received $64 billion in inward remittances.

Also read