India has once again established its position as the world’s leading remittance recipient, with an astounding $118.7 billion flowing into the country during the 2023-24 fiscal year. This remarkable figure has been bolstered by significant contributions from overseas populations, particularly from nations such as the United States and the United Arab Emirates.
According to the Reserve Bank of India (RBI) bulletin released in March 2025, remittances from the United States surged significantly, rising from 23.4% of the total remittance pie in 2020-21 to an impressive 27.7% in 2023-24. This increase underscores the United States’ role as the largest contributor to India’s remittances, with the total amount from the US alone reaching a staggering $118.7 billion in the same period. The United Arab Emirates holds the second-largest share of remittances, with its portion increasing from 18% to 19.2% during the same timeframe.
This upward trend highlights India’s pivotal role in the global workforce, as well as the ever-growing financial support from its diaspora. In fact, India topped the list of remittance-receiving countries in 2024, with expected inflows reaching $129 billion, leaving Mexico trailing at $68 billion, China at $48 billion, the Philippines at $40 billion, and Pakistan at $33 billion, according to economic analyses from the World Bank. This robust growth trend indicates a projected increase of 5.8% in remittances in 2025, a significant jump from the meager 1.2% growth recorded in 2023.
Experts attribute this growth primarily to the recovery of job markets in high-income countries like those in the Organization for Economic Co-operation and Development (OECD). Especially noteworthy is the job market recovery in the US, where the employment rate for foreign-born workers has surged, standing 11% higher than pre-pandemic levels observed in February 2020. This recovery has significantly influenced the robustness of remittances sent back to India from its overseas citizens.
Dr. Ramesh Kumar, an economist, highlights, “The recovery of the job markets in the high-income countries... has been the key driver of remittances. This is especially true for the United States where the employment of foreign-born workers has recovered steadily.” Such insights into labor dynamics further explain why certain countries see higher remittance flows.
Despite the surge in remittances, there remains a stark contrast in economic impact when comparing India with other nations. While India's remittances have consistently hovered around 3% of its gross domestic product (GDP) since 2000, countries such as China have only seen ratios below 0.3%. Conversely, the Philippines have garnered a much larger share of remittances relative to their GDP over the last decade.
The RBI bulletin showcased these comparisons, stating, “As a ratio to GDP, India’s remittances have hovered around 3 percent... while in the case of China, the ratio has remained below 0.3 percent.” Such statistics point to the importance of remittances not just as a source of income, but as a critical economic stabilizer for India.
Looking ahead, India’s position as a leading remittance-receiving nation seems secure. With the continued recovery in key economies and the resilience of Indian workers abroad, India is likely to maintain its status in the global remittance landscape. Projections indicate that the increasing trend of remittances will contribute positively to the Indian economy, bolstering financial flows and supporting local communities back home.
In summary, the pattern of remittances to India from abroad not only showcases the strong economic ties that Indian expatriates have with their homeland but also reflects the persistence and determination of Indian workers globally. As the country continues to navigate through economic shifts, these financial inflows stand as a testament to the strength of the Indian diaspora and its unwavering commitment to supporting families and communities back home.
