India’s Overseas Remittances Surge to Record $129.4 Billion in 2024

India received a record $129.4 billion in remittances in 2024, marking its third consecutive year exceeding $100 billion, according to RBI data. This growth is driven by skilled migration to developed nations and traditional inflows from GCC countries. Indian migrants, now 18.5 million globally, contribute significantly, with remittance growth outpacing global averages. Despite global economic challenges, these inflows have risen by 63% since 2020. The RBI projects remittances could reach $160 billion by 2029, showcasing their vital role in India's economy.

Indians residing abroad sent a staggering $129.4 billion back home in 2024, with $36 billion of that amount arriving during the December quarter alone, as revealed by the Reserve Bank of India's (RBI) balance of payments data. This marks the third year in a row that India has received over $100 billion in remittances, a trend that underscores its strong position as one of the world’s top recipients of such inflows. Since the IT sector boom of the 1990s, India has consistently ranked as a leading remittance destination and has held the global top spot since 2008, according to an Economic Times report. 

The surge in remittances can be attributed to the growing export of services and the increasing migration of skilled professionals to developed economies in North America and Europe. These factors have complemented the traditional remittance streams from Gulf Cooperation Council (GCC) nations, which have been a foundation of India’s inward remittances for decades. 

The flow of remittances is closely tied to employment opportunities in the source countries and migration patterns from India. The number of Indian international migrants has risen significantly, from 6.6 million in 1990 to 18.5 million in 2024. Their share of the global migrant population has also grown from 4.3% to over 6% during this period. Notably, about half of these Indian migrants reside in GCC nations. 

An analysis in the RBI’s monthly bulletin points out that "The competitive edge and the penetration of Indian IT services overseas at the start of the century, the number of skilled emigrants to advanced economies, especially to the US, has risen significantly. Thus, besides the GCC, advanced economies have also emerged as a major source of inward remittances to India over the years." 

Globally, India’s 2024 remittance inflows far outpaced other nations. Mexico ranked second with $68 billion, and China followed in third place with $48 billion in estimated inflows. India's remittance growth rate of 17.4% significantly exceeded the global average growth projection of 5.8% for the year. 

The contributions from India’s diaspora have surged by 63% since the onset of the COVID-19 pandemic in 2020. A World Bank blog highlights that "The recovery of the job markets in the high-income countries of the Organization for Economic Co-operation and Development (OECD), following the onset of the COVID-19 pandemic, has been the key driver of remittances." 

Despite economic challenges such as inflation in source regions like North America and Europe, the upward trend in remittances has continued. Madan Sabnavis, chief economist at Bank of Baroda, noted, "This is a reflection of dependents in India being more reliant on relatives. Partly due to fall in domestic income as well as inflation being high." 

The RBI remains optimistic about the future of remittances, which it classifies as private transfers in its balance of payments. The central bank projects that these inflows could reach an impressive $160 billion by 2029, reinforcing their critical role in India’s economic landscape. 

India’s remarkable growth in remittances highlights the resilience and global success of its diaspora, as well as the enduring support they provide to families and communities back home.