$135 Billion Sent Home by NRIs in FY24

India’s global diaspora continues to power its economy—this time with a historic milestone. In the fiscal year ending March 2024, overseas Indians sent home a staggering $135.46 billion, the highest ever on record, according to the Reserve Bank of India’s latest Balance of Payments data. This marks a 14% jump over the previous year and cements India’s long-standing position as the world’s top recipient of remittances.

A Decade-Long Lead—and Growing

India has held the crown as the top remittance destination for over a decade. In fact, inward remittances have more than doubled in just eight years, up from $61 billion in FY17. This surge comes even as remittance flows from traditional oil-rich economies such as the Gulf countries are tapering off.

Who’s Sending the Money?

The shift in global migration patterns is playing a big role. According to IDFC First Bank’s Chief Economist Gaura Sengupta, the remittance boom is being driven by a rising number of skilled Indian professionals migrating to developed economies like the US, UK, and Singapore—which together now account for 45% of total remittance inflows. Meanwhile, remittances from Gulf Cooperation Council (GCC) countries are shrinking, partly due to fluctuating oil prices and changes in labor demand.

How Important Are These Remittances?

Quite simply: they are vital. In FY24, remittances made up over 10% of India’s $1 trillion gross current account inflows. That places them alongside software and business services income—each of which also crossed the $100 billion mark—as the top three contributors to India’s external account. Together, they accounted for more than 40% of total inflows.

Even more telling, RBI researchers noted that remittances have consistently exceeded foreign direct investment (FDI) inflows into India, positioning them as a more stable source of external financing.

Bridging the Trade Gap

The impact goes beyond just currency inflows. India’s massive $287 billion merchandise trade deficit in FY24 was nearly 47% offset by remittance inflows. In essence, money sent home by NRIs is helping bridge India’s import-export imbalance—quietly but effectively.

Why India Remains Attractive

Another reason for India’s top spot: it’s one of the lowest-cost destinations to send $200, as highlighted in an RBI research paper. Lower transaction fees mean more money reaches families, making India a preferred remittance destination for workers around the globe.

How Does the World Compare?

Globally, India is far ahead. According to World Bank estimates, Mexico was a distant second in 2024 with $68 billion in remittance inflows, followed by China at $48 billion. These flows are classified under two heads in an economy’s balance of payments: compensation of employees (under primary income) and personal transfers (under secondary income). In India’s case, personal transfers dominate, driven by family maintenance payments and withdrawals from non-resident Indian (NRI) deposit accounts.

India’s $135 billion remittance record is more than just a headline figure—it’s a testament to the power of its global diaspora. Beyond supporting families, these funds are helping stabilize India’s economy, offset trade deficits, and outperform FDI inflows. As more Indians settle in high-income nations and take up skilled jobs, the remittance engine is likely to grow even stronger.