Indians working abroad transferred a remarkable total of $129.4 billion back to India in 2024, marking a significant milestone in remittance inflows. The October to December quarter alone saw the highest-ever inflows, amounting to $36 billion, according to recent data from the Reserve Bank of India (RBI).

India remains the leading country in receiving remittances, far surpassing Mexico, which received $68 billion. Following Mexico, China received $48 billion, while the Philippines and Pakistan garnered $40 billion and $33 billion, respectively, as reported by World Bank economists.

The growth rate of remittances in 2024 is projected at 5.8 percent, a notable increase from the 1.2 percent recorded in 2023. Additionally, the number of Indians working overseas has surged from 6.6 million in 1990 to 18.5 million in 2024, with their share in global migrants increasing from 4.3 percent to over 6 percent during the same period.

Approximately half of the Indian migrants are located in Gulf countries, which play a crucial role in the remittance landscape. The recovery of job markets in high-income countries, particularly among members of the Organisation for Economic Co-operation and Development (OECD), after the COVID-19 pandemic has been pivotal for remittance flows.

In the United States, employment for foreign-born workers has rebounded significantly, exceeding pre-pandemic levels by 11 percent as of February 2020. The World Bank forecasts that officially recorded remittances to low- and middle-income countries (LMICs) will reach $685 billion in 2024.

The World Bank’s report indicates that remittances are consistently outpacing other forms of external financial flows, such as foreign direct investment (FDI), to LMICs. This trend is expected to continue due to strong migration pressures driven by demographic changes, income disparities, and the impacts of climate change. Over the past decade, remittances have increased by 57 percent, while FDI has seen a decline of 41 percent.