India has consistently been the leading recipient of global remittances, and 2024 was no exception. The country maintained its top position, with its diaspora sending home a record $129 billion. This substantial figure underscores the vital role of remittances in India’s economy, surpassing even the annual budgets of neighboring nations and many of its internal financial benchmarks.
At $129 billion, India’s remittance inflow for 2024 was nearly equivalent to the combined annual budgets of Pakistan ($67 billion) and Bangladesh ($68 billion). It also far exceeded the $68 billion received by Mexico, which ranked second on the global remittance list. World Bank economists, who compiled the latest data, placed India ahead of other major recipients, including China at $48 billion, the Philippines at $40 billion, and Pakistan at $33 billion.
India’s remittance growth has remained robust, with a 5.8% increase in 2024 compared to the modest 1.2% growth seen in 2023. Over the past five years, India consistently surpassed the $100 billion mark, except in 2020 when the COVID-19 pandemic caused a dip to $83 billion. “Despite global challenges, India continues to demonstrate resilience in its remittance inflows,” noted a World Bank official.
This inflow significantly outpaced India’s Foreign Direct Investment (FDI), which amounted to $62 billion up to the September quarter of 2024. Additionally, remittances exceeded the country’s defense budget for the year by over $55 billion, emphasizing the financial weight of these transfers in comparison to other major fiscal allocations.
Over the last decade, remittances to India have grown by an impressive 57%. Between 2014 and 2024, the country received nearly $1 trillion in remittances, specifically $982 billion. The year-by-year figures are a testament to this steady increase: $70 billion in 2014, $69 billion in 2015, $63 billion in 2016, $69 billion in 2017, $79 billion in both 2018 and 2019, $83 billion in 2020, $105 billion in 2021, $111 billion in 2022, $125 billion in 2023, and now $129 billion in 2024.
The scale of these remittances highlights their significance in India’s economic framework, particularly as they consistently surpass other major sources of foreign inflow.