India receives record $129.4 billion in remittances in 2024

Indians working abroad sent home a record $129.4 billion in 2024, with the highest-ever inflows of $36 billion in the October-December quarter, according to the latest data from the Reserve Bank of India (RBI).

India remains the top recipient of remittances globally, surpassing second-placed Mexico with $68 billion. China follows with $48 billion, while the Philippines and Pakistan receive $40 billion and $33 billion, respectively, as per figures compiled by World Bank economists.

The growth in remittances for 2024 is estimated at 5.8%, a significant increase compared to the 1.2% growth in 2023.

The number of Indians working abroad has tripled from 6.6 million in 1990 to 18.5 million in 2024, with India’s share of global migrants rising from 4.3% to over 6% during this period. Indian migrants in the Gulf countries make up about half of the total Indian migrant population globally.

The recovery of job markets in high-income countries, particularly in the Organisation for Economic Co-operation and Development (OECD), post-pandemic has been a key driver of remittances, especially in the United States, where employment among foreign-born workers is now 11% higher than the pre-pandemic level of February 2020.

Official remittances to low- and middle-income countries (LMICs) are expected to reach $685 billion in 2024, continuing to outpace foreign direct investment (FDI) as the primary external financial flow. Over the past decade, remittances to LMICs have risen 57%, while FDI has declined by 41%.

The World Bank anticipates that remittances will continue to rise due to ongoing migration pressures driven by demographic trends, income gaps, and climate change.