India Tops Global Remittances at $135.46 Billion in FY24–25

Context

India continues to be the largest recipient of remittances globally, with inflows reaching $135.46 billion in FY24–25 — a 14% increase over the previous fiscal year. Remittances have more than doubled in eight years, reflecting India’s skilled diaspora, global competitiveness, and resilient economic fundamentals.

1. Scale and Significance

India received $137.7 billion in 2024, accounting for ~3.3% of GDP.
This inflow is significantly higher than the next-largest recipient, Mexico ($68 billion), and China ($48 billion).
India’s diaspora: 18.5 million strong in 2024, tripling from 6.6 million in 1990; India now accounts for 6% of global migrants.
The Gulf countries host ~50% of Indian migrants, but advanced economies (US, UK, Singapore, Canada, Australia) contributed >50% of remittances.

UPSC angle: Highlights India’s demographic dividend, skilled workforce, and global migration footprint.

2. Key Drivers

Skilled workforce: STEM graduates and professionals in IT, healthcare, and finance.
Diaspora networks: Enabled by digital payments, banking links, and international remittance channels.
Policy facilitation: Reduced tax barriers (e.g., US remittance tax cut to 1%).

3. Economic Implications

Stable external financing: Remittances complement FDI and services exports, forming ~40% of current account inflows.
Non-debt capital: Unlike borrowing, remittances strengthen household incomes and domestic consumption.
Resilience: During COVID-19, remittance flows remained largely stable, showing economic buffer capability.
Global comparison: India is fortified by remittances, unlike smaller economies (e.g., Tonga, Pakistan) that are heavily dependent on them.

4. Trends & Projections

Inward remittances have more than doubled since 2016–17 ($61 billion).
India’s share of global remittances: 11% in 2001 → 14% in 2024.
RBI projects $160 billion by 2029, reflecting continued growth of the skilled diaspora and global employment trends.

5. Conclusion

India’s record remittances underline its global workforce strength, economic resilience, and demographic advantage. They serve as a stable, non-debt source of external financing, bolstering the current account while supporting domestic consumption and human capital development. Unlike smaller economies reliant on remittances for survival, India uses them as a strategic buffer, enhancing its position in the global economic landscape.

Updated - 30 July 2025 ; 10: 20 PM | News On Air