Question
Consider the following statements: 1)India has
the largest emigrant population and is the top remittance recipient country. 2)Remittances are the largest major source of external financing. 3) According to the world bank remittances are set to increase to USD 500 Billion by the end of 2022. Which of the statements given above is/are correct?Solution
India has the largest emigrant population and is the top remittance recipient country with remittances anticipated to reach a milestone of USD 100 billion in 2022 according to the World Bank. Hence, statement 1 is correct and statement 3 is incorrect. Remittances are the second largest major source of external financing after service export, which contributes to narrowing the CAD (Current Account Deficit) and has always been a stable constituent of the BoP (Balance of Payments). Hence, statement 2 is not correct.
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