Indian Economy News

Indian diaspora breaks record with US$ 107 billion remittance surge in FY24

  • IBEF
  • June 27, 2024

In FY24, Indians residing abroad sent an unprecedented US$ 107 billion in remittances to their families in India, surpassing the US$ 100 billion threshold for the second consecutive year. This net remittance amount nearly doubles the combined total of US$ 54 billion from foreign direct investments (FDI) and portfolio investments during the same period. The balance of payments data shows that gross remittances from the Indian diaspora reached US$ 119 billion in FY24. After accounting for the repatriation of income by foreign residents and other related expenses, the net private transfers amounted to US$ 107 billion. Recent studies highlight a correlation between remittances, migration levels, and employment conditions in countries of origin. The cost of remitting funds also significantly influences the volume of overseas remittances.

According to a Reserve Bank of India (RBI) survey on post-COVID-19 remittances, the United States emerged as the primary contributor, constituting 23% of the total. In contrast, remittances from the Gulf region declined. Most funds are intended for familial support, with some allocated to investments such as deposits. In 2023, the United States remained the largest global contributor to remittances. The leading recipients were India (US$ 125 billion), followed by Mexico (US$ 67 billion), China (US$ 50 billion), the Philippines (US$ 40 billion), and Egypt (US$ 24 billion). In December, the World Bank’s "Migration and Development Brief" showed India leading in remittance receipts from its diaspora for over two decades, driven largely by IT professionals migrating to North America and Europe since the 1990s. The report's lead economist, Mr. Dilip Ratha, noted that remittance flows to developing nations have outpaced foreign direct investment and official development assistance in recent years, a trend expected to widen, with a projected 3.1% increase in 2024.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.