Make Remittance Engine Of Economic Growth

The part of the earnings that the migrants send home to support their families is known as workers’ remittance. Remittance represents the largest source of foreign exchange for many developing countries. In many developing countries remittance has been providing a lifeline for the poor. According to the World Bank, India tops the list of countries that receive largest remittances from its citizens, followed by China, Mexico and the Philippines, while the rich countries led by United States are the main sources of remittance, followed by Saudi Arabia, Switzerland and Germany. Remittance augments recipient household’s resources, smooth consumption, provide working capital, and have multiplier effects on the economy through increased household spending.