India has achieved a historic milestone in 2024, recording a total of $129.4 billion in remittances from Non-Resident Indians (NRIs).
According to the Reserve Bank of India (RBI), the country received an all-time high of $36 billion in the October-December quarter alone.
India continues to lead the global remittance market, significantly surpassing Mexico, which ranked second with $68 billion.
China followed in third place with $48 billion, while the Philippines and Pakistan secured the fourth and fifth spots with $40 billion and $33 billion, respectively.
These figures, compiled by World Bank economists, highlight India’s dominance in the sector.
Strong Growth Amid Rising Migration Trends
Remittance growth in 2024 stood at 5.8%, a sharp rise from 1.2% in 2023, as per World Bank data.
The number of Indians working abroad has seen a significant increase over the decades, rising from 6.6 million in 1990 to 18.5 million in 2024.
India’s share in global migration has also expanded from 4.3% to over 6% during the same period.
Migrants in Gulf countries continue to form the largest share of Indian expatriates, contributing significantly to remittance inflows.
The strong economic recovery in high-income nations, particularly in the Organisation for Economic Co-operation and Development (OECD) region, has played a crucial role in boosting remittance inflows.
OECD Job Market Recovery: A Key Driver
The post-pandemic recovery in job markets across OECD nations has significantly impacted remittance growth.
The United States, a major source of remittances for India, has witnessed a robust resurgence in employment, particularly among foreign-born workers.
As of 2024, employment among this group has increased by 11% compared to pre-pandemic levels in February 2020.
Officially recorded remittances to low- and middle-income countries (LMICs) are projected to reach $685 billion in 2024.
These inflows have consistently outpaced foreign direct investment (FDI) over the past decade, with remittances increasing by 57%, while FDI has declined by 41%.
Migration Pressures & Future Outlook
According to the World Bank, remittance growth will continue in the coming years due to mounting migration pressures driven by demographic shifts, income disparities, and climate change.
The growing demand for skilled labor in developed economies is driving high remittance flows to India and other major recipient nations.
As India maintains its position as the top remittance-receiving country, the government plans to utilize these inflows to boost economic growth, enhance infrastructure, and promote financial inclusion initiatives.
India’s record-breaking remittance inflows in 2024 reaffirm the critical role of its global workforce in driving economic resilience.
With continued migration trends and favorable job markets abroad, the Indian diaspora remains a vital contributor to the nation’s financial ecosystem.
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