The dilemma of developing countries is that they struggle to provide the basic amenities of life to the people. You name any developing country in the world, and you will find that the policies of the governments remain people-unfriendly, by and large.
Most of the populations of developing countries continue to suffer and find it hard to have viable access to the necessities of life like healthcare, education, shelter, food and security, etc.
And when the developing country happens to be one of the most populous worldwide, like India, these problems aggravate to unmanageable proportions. In this context, the people of India migrate to developed countries for work, earn remittances, and then send money to India.
The reasons why the people of India travel to developed countries are many, including poverty, unemployment, lack of quality education and other necessities of life, etc. We will discuss these reasons briefly. But, first, looking at the Indian economy and population is essential to understand better.
India – economy and population statistically.
- India is a middle-income developing economy.
- By nominal Gross Domestic Product (GDP), India is the 6th largest economy globally.
- By Purchasing Power Parity (PPP), India is the 3rd largest economy globally.
- In February 2022, Indian foreign exchange reserves were $632.95 billion
- In January 2022, Indian goods and services exports were about $61.41 billion
- India is the world’s second-most populous country after China, with about 1.38 billion people
- India’s population accounts for 17.7% of the total world population
- The median age is 28.4 years in India
- According to the International Monetary Fund (IMF), India ranked 145th by nominal GDP based on per capita income.
- The same report ranked India 122th based on GDP PPP.
These figures show that the Indian economy is developing fast, but as mentioned above, the policies of the successive governments have remained hostile towards the people by and large. That is the primary reason why the people of India migrate to developed countries in huge numbers annually to earn remittances and then send money to India online.
Let’s take a quick look at some of the reasons that force Indian people to travel to other countries for better employment opportunities.
Compelling reasons for leaving India
Here are a few reasons why the people of India go to the developed world.
Rampant unemployment
The biggest reason is that the government of India cannot create jobs and work opportunities at the same rate at which the job-seeking youth are entering its job market every year. This results in high levels of unemployment in the society. Talking about the advent of driverless cars in India shortly, a renowned Indian analyst said that if this happens, it will render over 35 million Indian drivers jobless since they have no other way to earn a living.
Abject poverty
Since rampant unemployment exists in India, the hovering of deep clouds of poverty over the population comes naturally. A sizeable Indian population lives far below the poverty line. Poverty in India is so intense that people cannot even manage toilet facilities in their residences. It is also difficult for the Indian people to put food on the tables.
Lack of quality education
Sound education can secure and financially healthy future. But the problem in developing countries like India is that the people cannot access quality education. The quality of the education available in public institutions is so low that educating from there or not means almost the same. It does not yield any dividends in helping students get excellent jobs in the future. And the institutions offering quality education are so expensive that most cannot simply afford it, as most of the population lives far below the poverty line.
The way out
These and many other reasons compound the people’s miseries, some of whom somehow manage to travel to developed countries to break the iron grip of poverty and unemployment. It is not that all the poor people tend to go out; only those who can manage and somewhat afford to do so. These Indian expatriates then earn better and look for companies for a secure online money transfer to India.
Instant international money transfer to India
Banks had monopolised money transfer across borders despite being a time-consuming and tedious process. But, banks’ monopoly was challenged and somewhat significantly shattered by the advent of many credible online money transfer companies, including ACE Money Transfer. These companies instantly transfer funds to the country of residence of an Indian expatriate back to India, and that too simply and conveniently, through their international money transfer app(s).
Let’s look at some of the benefits of instant money transfers.
Electronic transfers are fast.
Instant money transfers are called thus as they are speedy. Here you initiate a transaction, and the recipient is notified about it.
Wider accessibility and 24/7 availability
Unlike banks, online money transfer companies are available widely and also their services never shut down since they are available online and are well within reach of the customers.
Paperwork is not required.
In instant online money transfer, the paperwork is no longer needed, as with banks where you have to fill loads of papers to initiate and execute a transaction.
Comparatively low fee
Online money transfer companies have the advantage of charging a lower fee for international transfers than banks. Transactions with online money transfer companies are considered the cheapest way to transfer money internationally.
Favourable currency exchange rates
Online money transfer companies that offer instant funds transfer offer competitive currency exchange rates that fluctuate according to international market trends, enabling the customers to initiate a transaction when rates are most favourable.
Security and safety
Money transfers with some companies are secure and safer than the banks. Of course, the chance for online fraud is still there, but it marginalises credible companies due to their strict security protocols.
Now, let’s take a look at the Indian expatriates worldwide and the volume of remittances Indian expatriates send back.
Indian expatriates – at a glance
- Overseas Indians are officially known as the Non-Resident Indians (NRIs) or Overseas Citizens of India (OCIs)
- A report by the Indian Ministry of External Affairs stated that about 32 million Indian expatriates reside in different countries. It is the world’s largest overseas diaspora. But, it does not end here.
- Every year about 2.5 million Indians travel to other countries for the reasons explained above. This is the highest annual number of migrants in the world.
- No wonder then that India has held the position of being the biggest recipient of remittances in the world for the past several years now and continues to do so
- In 2021, India received about $87 billion as remittances from its millions of NRIs spread worldwide.
- Of these $87 billion, the US remained the most prominent source accounting for more than 20% of the total amount.
The number of remittances is projected to increase in the coming years, given the massive number of Indians going abroad yearly.
It will not be unfair to assert that one of the reasons behind the swollen volume of remittances is the wider availability and easy accessibility of online money transfer companies providing the best international money transfer services to expatriates worldwide.
Although the number of online money transfer service providers is enormous, many unscrupulous companies operate in this field with a dubious reputation. Therefore, selecting a service provider with care and caution is necessary to ensure satisfaction. You can send money to India online using ACE Money Transfer, trusted by millions of expats worldwide for fast, secure, and smooth transactions.
