Historic High in Remittances

Indians living abroad have set a new record by sending home an unprecedented $129.4 billion in 2024, with the December quarter alone contributing $36 billion, as per the Reserve Bank of India's latest data. This marks the third consecutive year that remittances to India have surpassed the $100 billion milestone, reinforcing the country's position as a global leader in receiving remittances for over 25 years.

Global Migration and Economic Trends

The surge in remittances is attributed to the increasing number of skilled Indian professionals migrating to developed nations in North America and Europe, alongside traditional inflows from Gulf Cooperation Council (GCC) countries. The RBI's analysis highlights the significant role of Indian IT services and skilled emigrants in advanced economies, particularly the US, in driving these financial flows.

Comparative Global Standing

In 2024, India's remittances grew by an impressive 17.4%, far exceeding the global average. Mexico and China followed with $68 billion and $48 billion in remittances, respectively. The diaspora's contributions have seen a 63% increase since 2020, underscoring the resilience and generosity of overseas Indians despite global challenges.

Future Projections

The Reserve Bank of India anticipates continued growth in remittances, projecting inflows to reach around $160 billion by 2029. This optimistic outlook is supported by the recovery of job markets in high-income OECD countries post-pandemic, despite inflationary pressures in key regions.