The money transfer by an individual who is working in a foreign country to a person in his or her home country is called as remittance. In developing countries, remittances made by migrants compete as one among the largest financial inflows, with international aid. Workers’ remittances form a notable chunk of capital flows from foreign countries, chiefly with respect to the countries exporting labour.
A new record was set in the year 2014 when a whopping $436 billion came into the developing economies. A total of $583 billion was seen across the globe. Developing economies such as China and India have inflow of billions of US dollars in the form of remittances each year from their expatriates. An estimated amount of $64 billion of remittance was received by China and $70 billion worth of remittances by India in the year 2014.