International Day of Family Remittances

International Day of Family Remittances History

The International Day of Family Remittances (IDFR) is a global observance that recognizes and celebrates the significant contributions of migrant workers to their families and communities back in their home countries. It aims to raise awareness about the vital financial lifelines provided by millions of migrants across the globe and the need for improved financial inclusion to boost the economic development of their home countries. The event emphasizes the importance of supporting the well-being of migrants and fostering partnerships among various stakeholders, including the private sector and governments, to reduce the costs and increase the impact of remittance services.

This observance holds a special significance for India, as the country has a sizeable migrant population that contributes enormously to both the national and global economy. In 2019, India received the highest remittance inflow worldwide, accounting for USD 83 billion. Established by the International Fund for Agricultural Development (IFAD) in collaboration with over 100 partners in June 2015, the observance promotes awareness of the critical role played by remittances in alleviating poverty and promoting sustainable development for families and communities back home. The IDFR resonates with the aspirations of millions of Indian migrants, who work hard to support their families and contribute to the nation's growth.

In India, the International Day of Family Remittances is observed through a series of events and activities that aim to raise awareness and encourage dialogue around the issue of remittances. Financial institutions, non-government organizations, and government departments organize seminars, workshops, and panel discussions to explore the challenges and opportunities in the remittance sector. Initiatives are undertaken to promote better use of digital channels, incentivize formal remittance methods, and advocate for cost reduction in money transfer services. The International Day of Family Remittances takes place annually on June 16, serving as a reminder of the crucial role played by remittances in the lives of people and communities in India and across the globe.

Facts about Family Remittances

• In countries such as Tonga, Kyrgyz Republic, and Haiti, remittances can make up more than a quarter of the GDP each year.
• Global remittances inflows are expected to grow by 2.0% in 2023.
• Family remittances are closely linked to migration patterns. The financial support provided through remittances can incentivize migration, as individuals seek better economic opportunities abroad to support their families back home.
• In 2021, India received the largest volume of remittances in the world, amounting to approximately 83 billion US dollars. The majority of remittances come from the United Arab Emirates, the United States, Saudi Arabia, Qatar, and Kuwait. The remittance corridor between India and the UAE is one of the largest in the world, accounting for more than 22% of India's total remittance inflows.
• According to the World Bank, remittances accounted for approximately 2.9% of India's GDP in 2020. These inflows help to create a balance of payments and maintain foreign exchange reserves.

In the News and Trending in India for International Day of Family Remittances

Top things to do in India for this observance

• Watch the IFAD's 2020 International Day of Family Remittances video if you missed it.
• Watch a documentary to learn more about family remittances in India. Here are our suggestions:
  1. India's Frontier Railways (2015)- This BBC documentary series features the Matheran Hill Railway, built by migrant Indian laborers who sent remittances back to their families. The train connects rural communities and plays a significant role in the economic development of the region.
  2. Money in the Bank (2001)- This documentary directed by Anwar Jamal showcases the story of a small Indian village's progression, driven primarily by international remittances sent back by family members working abroad.
  3. Migration Diaries (2019)- A short documentary series by Observer Research Foundation that explores various aspects of migration and remittance narratives from different regions of India, including Kerala, Punjab, and Uttar Pradesh.
• Read a book to learn more about family remittances in India. Here are our top picks:
  1. Remittances: Autonomy and Dependence: Indian migrant workers in the Gulf and their families at home by Leela Fernandes
  2. India Migration Report 2020: Gulf Migration edited by Sadanand Sahoo and Prem Kumar Vijayan
  3. The Remittance Market in India: Opportunities, Challenges, and Policy Options by Gabi G. Afram