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India leads remittance inflows at $129 bn in 2024
India’s diaspora continues to be a cornerstone of the nation’s economic resilience, remarked a World Bank economist.
India's remittance inflows outpaced other nations by a wide margin. / World Bank
India has once again solidified its position as the world’s largest recipient of remittances, with a record-breaking inflow of $129 billion in 2024, according to World Bank data. This amount not only underscores the significance of its diaspora but also highlights its critical role in the nation’s economic framework.
Surpassing FDI and defense budgets
The remittance inflow significantly exceeded India’s Foreign Direct Investment (FDI) for the year, which stood at $62 billion till the September quarter, and even surpassed the country’s defense budget by more than $55 billion. In comparative terms, India’s remittances are almost as much as the combined annual budgets of Pakistan ($67 billion) and Bangladesh ($68 billion).
India has seen a 57 percent growth in remittance inflows over the last decade, totaling $982 billion between 2014 and 2024. While the country received $70 billion in 2014, the figure has grown steadily, crossing the $100 billion mark in 2021 and now reaching an all-time high. Even during the COVID-19 pandemic in 2020, when remittances dipped globally, India managed to secure $83 billion.
Top Recipients of Remittances among Low- and Middle-Income Countries in percent of GDP, 2024e. / World bank blogThe year-on-year growth rate for 2024 stood at 5.8 percent, a sharp increase from 1.2 percent in 2023.
India's remittance inflows outpaced other nations by a wide margin. Mexico secured the second position with $68 billion, followed by China at $48 billion, the Philippines at $40 billion, and Pakistan at $33 billion. The resilience of remittances reflects global migration trends and the critical role of Indian expatriates in high-income economies.
The recovery of job markets in high-income countries, especially in the United States, has been a significant factor. Foreign-born workers in the US saw their employment levels rise 11 percent above pre-pandemic levels, driving strong remittance flows.
South Asia registered the highest regional growth in remittance inflows at 11.8 percent, with India, Pakistan, and Bangladesh leading the charge.
Strategic Importance
Remittances remain a critical source of foreign exchange for India, dwarfing other financial inflows like FDI. The funds contribute to poverty alleviation, education, healthcare, and financial inclusion. They also provide a stable financial lifeline during economic disruptions.
“India’s diaspora continues to be a cornerstone of the nation’s economic resilience,” remarked a World Bank economist.
As migration pressures driven by demographic shifts, income disparities, and climate change persist, remittances are expected to grow further. Experts emphasize leveraging these inflows to strengthen social infrastructure and economic stability.
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