Mumbai– Remittances from Indians working overseas surged to an all-time high of $135.46 billion in the financial year 2024–25, marking a 14% increase year-over-year, according to data released by the Reserve Bank of India (RBI).
These inflows, categorized as “private transfers” by the RBI, made up over 10% of India’s total gross current account flows, which reached $1 trillion in FY25.
Personal transfer receipts — primarily representing money sent by Indians employed abroad — climbed to $33.9 billion in the January–March quarter of FY25, up from $31.3 billion in the same period the previous year.
In calendar year 2024, Indian expatriates sent home a record $129.4 billion, with a peak of $36 billion in the October–December quarter alone — the highest quarterly inflow on record.
India retained its position as the top recipient of global remittances in 2024, significantly ahead of second-ranked Mexico ($68 billion), followed by China ($48 billion), the Philippines ($40 billion), and Pakistan ($33 billion), according to World Bank estimates.
The global growth rate of remittances to India was estimated at 5.8% in 2024, compared to just 1.2% in 2023.
The number of Indians working overseas has nearly tripled over the past three decades — from 6.6 million in 1990 to 18.5 million in 2024. During this time, India’s share in the global migrant population has risen from 4.3% to over 6%. Notably, nearly half of all Indian migrants are employed in Gulf countries.
One of the key drivers of rising remittances has been the steady recovery of job markets in high-income OECD nations following the COVID-19 pandemic — especially in the United States, where employment among foreign-born workers is now 11% above pre-pandemic levels (as of February 2020).
In a welcome move for Indian professionals and Non-Resident Indians (NRIs) in the U.S., the revised draft of the One Big Beautiful Bill Act, proposed by former President Donald Trump, includes a reduced remittance tax rate of 1%, down from the originally proposed 5%.
In addition to remittances, software services and business services were also major contributors to India’s current account inflows in FY25 — each generating over $100 billion. Combined with remittances, these three segments accounted for more than 40% of India’s total current account receipts, playing a crucial role in containing the country’s current account deficit. (Source: IANS)
