Indians residing overseas sent home a record $129.4 billion in remittances in 2024, with the final quarter alone contributing $36 billion, according to an analysis of the Reserve Bank of India’s balance of payments data. For the third consecutive year, India has received over $100 billion in remittances, maintaining its status as a global leader in this domain. India has been among the world’s top recipients of remittances for over 25 years, a trend that began with the IT sector’s expansion in the 1990s. Since 2008, the country has consistently held the number one position, according to a report by The Economic Times.
A combination of increased services exports and the migration of skilled professionals to developed nations in North America and Europe has played a crucial role in boosting remittance inflows. These new sources of funds complement traditional remittances from Gulf Cooperation Council (GCC) countries, which have long been a primary source of foreign income for Indian households.
The volume of remittances is closely tied to employment conditions in the countries sending them and migration trends in the countries receiving them. Over the decades, the number of Indian international migrants has grown significantly, rising from 6.6 million in 1990 to 18.5 million in 2024. Consequently, their share among global migrants has increased from 4.3% to over 6% in this period. Nearly half of all Indian migrants worldwide reside in GCC countries, continuing the region’s importance as a key source of remittances.
An analysis in the Reserve Bank of India’s monthly bulletin emphasized the role of skilled workers in driving remittance growth. “The competitive edge and the penetration of Indian IT services overseas at the start of the century, the number of skilled emigrants to advanced economies, especially to the US, has risen significantly. Thus, besides the GCC, advanced economies have also emerged as a major source of inward remittances to India over the years,” the analysis stated. This trend reflects the growing contribution of professionals in technology, finance, and healthcare sectors who work in high-income nations and send money back to their families.
India remains the leading recipient of remittances globally, with a significant gap between its inflows and those of other nations. In 2024, Mexico ranked second with $68 billion in remittances, while China secured the third spot with an estimated $48 billion in inflows. The growth in India’s remittances, which stood at 17.4% for the year, far exceeded the global average growth projection of 5.8%. This surge highlights the increasing financial contributions from the Indian diaspora and the robust economic ties they maintain with their home country.
Since the onset of the COVID-19 pandemic in 2020, India’s remittance inflows have increased by an impressive 63%, demonstrating the resilience and adaptability of its migrant workforce. A World Bank blog noted that “The recovery of the job markets in the high-income countries of the Organization for Economic Co-operation and Development (OECD), following the onset of the COVID-19 pandemic, has been the key driver of remittances.” This recovery has played a crucial role in sustaining remittance growth despite economic uncertainties.
Inflationary pressures in major remittance-sending regions such as North America and Europe have not dampened the upward trend. Instead, these economic challenges have reinforced the dependence of families in India on financial support from relatives abroad. “This is a reflection of dependents in India being more reliant on relatives,” remarked Madan Sabnavis, chief economist at Bank of Baroda. “Partly due to fall in domestic income as well as inflation being high.” His observation underscores the dual impact of domestic economic conditions and global employment trends on remittance flows.
The Reserve Bank of India classifies private transfers in the balance of payments as remittances and expects this upward trajectory to persist. The central bank projects that these inflows will continue to grow, reaching approximately $160 billion by 2029. If this projection holds, India will further cement its position as the world’s top recipient of remittances, underscoring the economic significance of its global diaspora.
