India’s diaspora sent a record-breaking $129.4 billion in remittances in 2024, according to the Reserve Bank of India’s (RBI) balance of payments data. Despite inflation in source countries like the US and Europe, the trend continued upward, with the December quarter alone accounting for $36 billion. The OECD job market recovery post-pandemic has been a significant factor in driving remittance growth.
India Maintains Global Lead in Remittances
For the third consecutive year, India received over $100 billion in remittances, maintaining its global leadership position since 2008. India’s dominance in global remittances began after the IT sector boom in the 1990s, leading to a surge in skilled professionals migrating abroad.
In 2024:
- Mexico ranked second with $68 billion in remittances.
- China followed at $48 billion.
- India’s remittance growth rate of 17.4% far outpaced the global average of 5.8%.
Key Drivers of Rising Remittances
Several factors have contributed to this continued rise:
- Skilled Migration – The Indian workforce in IT and healthcare has expanded significantly in North America and Europe, complementing traditional remittance sources from GCC (Gulf Cooperation Council) countries.
- Growing Indian Diaspora – The number of Indian international migrants increased from 6.6 million in 1990 to 18.5 million in 2024, accounting for over 6% of global migrants.
- OECD Job Market Recovery – The post-pandemic rebound in high-income nations has boosted earnings and, in turn, remittance inflows.
- Increased Dependence on Remittances – Inflation and lower domestic income in India have made many households more reliant on funds from abroad.
Future Projections and Economic Impact
According to the RBI, private transfers included in the balance of payments indicate sustained growth in remittances, with projections reaching $160 billion by 2029.
As India’s diaspora expands and integrates into high-income economies, remittances will continue to support the nation’s foreign exchange reserves, reduce current account deficits, and bolster household incomes.
