India Secures 14.3% of Global Remittances in 2024

According to the World Bank, India secured 14.3% of Global Remittances in 2024, highest share ever. 
 

• Remittances are financial transfers made by individuals working abroad to support their families in their home country.
   

Remittance Trends in 2024
 

1. Top five recipients in 2024: India at $129 billion (Compared to $125 billion in 2023), Mexico, China, Philippines, and Pakistan, driven by recovery in job markets in high-income countries of OECD.
    
2. Remittances to Low- and Middle-Income Countries are projected to surge to $685 billion in 2024, with 5.8% growth rate.
    
3. China's share of global remittances dropped to 5.3% in 2024, its lowest share in two decades, due to reduced low-skilled emigration stemming from its rising economic prosperity and aging population.
    

Factors Contributing to High Remittances in India
 

1. Large Diaspora Population: India is home to one of the largest diaspora populations in the world, with over 18 million Indians living abroad as of 2023 (according to the UN World Migration Report 2024).
    
2. Shifts in Migration Destinations: Increasingly, Indian migrants are moving to high-income countries like the United States, United Kingdom, and Australia.
    
3. Diverse Labor Force: Indian migrants are diverse in skill sets, ranging from highly skilled professionals (such as IT and healthcare workers) to semi-skilled and unskilled laborers.

Significance of High Remittances for India
 

1. For Recipient Households: Remittances play a crucial role in supporting household expenses, including food, healthcare, and education, directly improving the living standards of recipients.
    
2. For the National Economy: Remittances are a significant source of foreign exchange for India, reducing reliance on foreign aid. They help fund current account deficits and fill fiscal shortfalls, thus contributing to macroeconomic stability.