Media reports Indian diaspora remittances reach record high

(MENAFN) India received a record-breaking $135.46 billion in remittances from its global diaspora during the 2024–25 fiscal year, according to a report by The Economic Times, citing data from the Reserve Bank of India (RBI). This figure represents a 14% increase from the previous year and accounts for over 10% of the country’s total current account inflows, which reached $1 trillion.

A report by RBI staff highlighted that remittances continue to surpass foreign direct investment inflows, underscoring their reliability as a stable source of external financing.

The United States was the largest contributor, accounting for 27.7% of total remittances, followed by the UAE (19.2%), the UK (10.8%), and Saudi Arabia (6.7%), according to The Indian Express.

In 2024, the World Bank listed India as the top recipient of global remittances, estimating inflows at $129 billion. Following India were Mexico ($68 billion), China ($48 billion), the Philippines ($40 billion), and Pakistan ($33 billion).

IDFC First Bank Chief Economist Gaura Sengupta noted that the surge in remittances continued despite falling oil prices, largely due to the growing number of skilled Indian workers migrating to advanced economies like the US, UK, and Singapore.

However, potential economic slowdowns in those countries and new regulatory measures could pose risks to future remittance flows. For instance, the US Senate recently passed President Donald Trump’s “One Big Beautiful Bill Act,” which introduces a 1% tax on all overseas money transfers by non-citizens made through cash, money orders, or cashier’s cheques.

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