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The World Bank report also highlighted a 5.8% year-on-year growth in remittances for 2024.
NRIs sent record $129 billion in 2024.
For the third consecutive year, India has topped the global rankings for remittances, with non-resident Indians (NRIs) sending a record $129 billion (approximately Rs 10.7 lakh crore) back home in 2024. This marks a significant increase from the previous year, when remittance flows to India totaled Rs 8.95 lakh crore.
According to a recent World Bank blog post, India remains the largest recipient of remittances, followed by Mexico, China, the Philippines, and Pakistan. The flow of remittances to India is a vital source of foreign exchange, contributing to the country’s financial stability and economic resilience. While the Gulf nations have historically been a major source of these remittances, developed countries such as the United States, the United Kingdom, Australia, and Canada have increasingly become important contributors as well.
The World Bank report also highlighted a 5.8% year-on-year growth in remittances for 2024, a marked improvement from the 1.2% growth recorded in 2023. This surge is largely attributed to the recovery of the global job market, especially in Organisation for Economic Co-operation and Development (OECD) member countries, following the disruptions caused by the COVID-19 pandemic. Over the past decade, global remittances have increased by 57%, while foreign direct investment (FDI) has experienced a 41% decline, underscoring the growing importance of remittances as a financial lifeline for many countries.
Remittances to low and middle-income countries (LMICs) have also seen significant growth. The World Bank projects that remittance flows to LMICs will reach $685 billion in 2024, with South Asia leading the charge. India, Pakistan, and Bangladesh are expected to see the largest increase in remittance inflows, with South Asia projected to experience a robust 11.8% growth rate in 2024.
India’s position as a remittance powerhouse is not new. In 2022, it became the first country in history to receive over $100 billion in remittances, with NRIs sending $111.22 billion (around Rs 9.28 lakh crore) back to the country. This achievement underscored the significant role of the Indian diaspora in supporting the nation’s economic and social development.
Experts from the World Bank stressed the importance of leveraging remittance inflows for poverty alleviation, financing healthcare, education, and promoting financial inclusion. They believe that harnessing the full potential of remittances can significantly enhance access to capital markets for both state and non-state enterprises, thereby fostering long-term economic growth and social development in recipient countries.
