India has once again topped the global charts for receiving the highest remittances from its diaspora, with a record-breaking USD 135.46 billion sent back home during the previous financial year. This marks a significant milestone, reinforcing the country’s long-standing position as the world’s leading recipient of remittances for over a decade.
According to the latest balance of payments data released by the Reserve Bank of India, remittances, categorised as ‘private transfers’, rose by 14 percent compared to the previous year. The upward trend in financial inflows has been consistent over the years, more than doubling from USD 61 billion in 2016-17 to the current levels.
These inward remittances made up over 10 percent of India’s total gross current account inflows, which stood at USD 1 trillion for the fiscal year ending March 31. The RBI also pointed out that India remains one of the countries with relatively lower costs for transferring amounts like USD 200, making it more accessible for the overseas community to send money home.
Much of this growth has been linked to the rising number of skilled Indian workers migrating to developed countries such as the United States, the United Kingdom, and Singapore.
These three nations alone now contribute 45 percent of total remittance inflows to India. At the same time, the share of remittances from Gulf Cooperation Council countries, which are often sensitive to changes in oil prices, has been declining.
Apart from remittances, other major sources of current account inflows include earnings from software services and business services, each of which brought in over USD 100 billion during the fiscal year. Together with remittances, these three components contributed to more than 40 percent of India’s gross current account inflows.
The RBI noted that remittance inflows continue to play a crucial role in supporting the Indian economy, often exceeding the country’s gross foreign direct investment (FDI) inflows. In the fiscal year 2024-25, these remittances helped bridge nearly half of India’s merchandise trade deficit, which amounted to USD 287 billion.
Globally, India remained ahead of other major remittance-recipient countries. The World Bank ranked Mexico in second place with an estimated USD 68 billion in inflows, followed by China with approximately USD 48 billion. Remittances around the world represent cross-border household income sent by migrants to their families in their home countries, often contributing significantly to domestic finances.
In India’s case, the majority of these funds are personal transfers, mainly for family maintenance, along with withdrawals from non-resident deposit accounts. These are recorded in the balance of payments under secondary income, in line with international guidelines set by the International Monetary Fund.
