Overseas Indians Send Record $129.4 Billion in Remittances to India in 2024

India has seen a record inflow of $129.4 billion in remittances from its overseas diaspora in 2024, marking the highest-ever quarterly inflows of $36 billion in the December quarter, according to the Reserve Bank of India’s balance of payments data. This is the third consecutive year that the country has received over $100 billion in remittances, reinforcing its position as one of the top global recipients.

India has held this top spot for over 25 years, ever since the rise of the information technology boom in the 1990s, and has maintained its leadership in remittance inflows since 2008. The influx is driven by the migration of skilled professionals to developed economies in North America and Europe, alongside traditional sources from the Gulf Cooperation Council (GCC) countries. These migrants regularly send money back home to support their families, contributing significantly to the remittance figures.

Remittances typically correlate with employment conditions in the source country and migration patterns in the recipient country. Over the past few decades, India’s stock of international migrants has grown substantially, tripling from 6.6 million in 1990 to 18.5 million in 2024. India’s share of global migrants has also increased, rising from 4.3% to over 6% during this period. The GCC countries remain home to roughly half of India’s total global migrant population.

A recent survey published in the Reserve Bank of India’s monthly bulletin highlights the role of India’s booming IT services sector, which began penetrating global markets at the turn of the century. This contributed to a rise in the number of skilled Indian emigrants to advanced economies, particularly the United States. Over time, these advanced economies have emerged as significant sources of remittances to India, alongside the GCC nations.

In 2024, Mexico followed India in remittance inflows, with an estimated $68 billion, while China ranked third with around $48 billion. India’s remittance growth in 2024 surged by 17.4%, significantly outpacing the global average growth of 5.8%. Notably, remittance inflows have grown by 63% since the start of the COVID-19 pandemic in 2020. A World Bank blog attributes this surge to the recovery of job markets in high-income countries of the Organization for Economic Co-operation and Development (OECD), which has driven increased remittances.

Despite inflationary pressures in many source countries, particularly in North America and Europe, remittance levels have remained high. Madan Sabnavis, Chief Economist at Bank of Baroda, noted that this is a reflection of increased reliance on relatives in India, driven by challenges such as rising domestic income inequality and high inflation.

The Reserve Bank of India treats private transfers as remittances in its balance of payments data. Looking ahead, remittance inflows to India are expected to remain strong, with projections indicating an increase to approximately $160 billion by 2029.

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