New Delhi [India], June 20 : India’s Remittance Inflow Hits New Record. As India received $135.4 billion in remittances during financial year 2024-25 (FY25), marking the highest-ever annual inflow from Indians living abroad. The figure represents a rise of around 14% compared with FY24, when India received about $118.7 billion.
Remittances refer to money sent by Indians working overseas to their families, bank accounts, and investments in India. The latest data keeps India at the top of the global remittance rankings, ahead of countries such as Mexico and China.
Remittances Surpass FDI and FPI
The record inflow has become a major pillar of India’s external finances. In FY25, remittances exceeded foreign investment flows, including FDI and FPI, showing the strength of overseas Indian earnings.
However, if we compare the remittance figures, FY25’s $135.4 billion inflow remains significantly higher than previous years. India received around $118.7 billion in FY24, meaning remittances increased by nearly 14% in one year. Compared with FY20, when India received approximately $83.2 billion, the FY25 figure is over 60% higher, reflecting the growing strength of the Indian diaspora and the expansion of global employment opportunities for Indians.
Why Are Remittances Growing?
Experts link the rise to several factors:
Growing number of skilled Indian professionals abroad
Higher earnings in countries such as the US, UK, UAE, Canada and Singapore
Increasing use of formal banking channels for transfers
Expansion of India’s global workforce
The US, UK and Singapore have emerged as major sources of remittance flows.
Government and RBI View
According to the RBI data, remittances is one of India’s most stable sources of foreign currency inflows. The Reserve Bank has highlighted the importance of private transfers in supporting India’s external balance.
RBI Governor Sanjay Malhotra has also said India continues to remain an attractive investment destination, with gross FDI inflows rising in FY25.
Economic Impact
The record remittance figure strengthens India’s foreign exchange position and supports household spending, education, healthcare and savings across the country.
With remittances crossing the $135 billion mark, the Indian diaspora has become a major contributor to the country’s economic stability.
Ends.
Comments (0)
Be the first to comment!