New Delhi – Non-Resident Indians (NRIs) have once again demonstrated their economic strength and connection to their homeland. In the fiscal year ending March 31, 2024, NRIs sent a record $135.46 billion in remittances to India, making the country the world’s top recipient of remittances for the 10th consecutive year, according to data released by the Reserve Bank of India (RBI).
This figure represents a 14% year-on-year growth, driven largely by the rising number of skilled Indian workers migrating to high-income countries such as the United States, the United Kingdom, and Singapore.
🔺 Strong Surge in NRI Remittances
As per RBI’s Balance of Payments report, these inflows are classified as “private transfers”, and have seen a significant jump in the last year. This surge underlines the growing financial contribution of India’s global diaspora.
📈 Remittances Have More Than Doubled Since 2016-17
In 2016-17, India received $61 billion in remittances — a figure that has more than doubled in just seven years. RBI reports that these funds now account for over 10% of India’s total current account inflows, which crossed $1 trillion in the 2023-24 fiscal year.
An RBI research paper noted that India has one of the lowest costs for sending $200 compared to most other nations, making it a preferred destination for global remittances.
🌍 India Tops Global Remittance Rankings
According to the World Bank, India retained its position as the world’s largest recipient of remittances in 2024:
- India: $135.46 billion
- Mexico: $68 billion
- China: $48 billion
💡 What Is a Remittance?
Remittances refer to the money sent by Indians living abroad — whether temporarily or permanently — to their families in India. As defined by the IMF (2009), remittances fall under two categories:
- Compensation of Employees
- Personal Transfers
In India’s case, personal transfers, including household support and local withdrawals from NRI deposit accounts, make up the bulk of the remittance inflows.
⛽ Despite Crude Oil Drop, Remittance Growth Stays Strong
According to Gaurav Sengupta, Chief Economist at IDFC First Bank, the growth remained robust despite falling crude oil prices. This is attributed to a sharp increase in the number of Indian skilled professionals moving to developed nations such as the US, UK, and Singapore.
🌏 45% of Remittances Come from US, UK & Singapore
RBI data reveals that 45% of India’s total remittances originate from these three developed nations. In contrast, the Gulf Cooperation Council (GCC) countries’ share has declined due to their dependency on volatile oil-based income.
Interestingly, earnings from software and business services crossed $100 billion last year — nearly matching remittance inflows, and reflecting India’s dominance in global digital and professional services.
💰 Remittances Surpass FDI and Help Cover Trade Deficit
RBI further noted that remittance inflows have outpaced foreign direct investment (FDI), making them a more stable and reliable financial inflow. Together with software and business services, these three sectors contributed to over 40% of India’s current account inflows.
Moreover, in 2024, remittances helped India manage a massive $287 billion trade deficit, covering about 47% of the shortfall — offering a critical buffer to the nation’s external economy.