India tops list of countries receiving highest remittances; Indian diaspora sends home record $107 billion

India tops the list of countries with highest remittances! In the fiscal year 2023-24, overseas Indians sent a record-breaking $107 billion in remittances to their relatives in India, surpassing the $100 billion mark for the second consecutive financial year.
According to an ET report, these net remittances are nearly twice the amount of net foreign investments, which include both FDI and portfolio investments, totaling $54 billion during the same period.
Several global studies and domestic research have suggested that remittances are connected to the level of migration in various economies, as well as job opportunities and the economic situation in the source countries. The cost of remittances is also considered a factor influencing overseas remittances.
The gross remittances by the Indian diaspora, as reflected in private transfers in the balance of payments, reached $119 billion in FY 2023-24. After accounting for the repatriation of income by private foreign residents and other remittances, the net private transfers amounted to $107 billion.

The United States remained the largest source of remittances. In 2023, the top five remittance recipient countries were India ($125 billion), Mexico ($67 billion), China ($50 billion), the Philippines ($40 billion), and Egypt ($24 billion).
An RBI survey on remittances conducted after the Covid pandemic showed that the United States is the largest source of remittances, accounting for 23% of the total, while flows from the Gulf region have decreased. The survey also indicated that the majority of these remittances are used for family needs, with a portion also being invested in other assets such as deposits.
According to the World Bank's "Migration and Development Brief" released in December, India has been the top recipient of remittances from its diaspora for more than 20 years, largely driven by the increase in IT professionals moving to North America and Europe since the 1990s.
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"Remittance flows to developing countries have surpassed the sum of foreign direct investment and official development assistance in recent years, and the gap is increasing," said Dilip Ratha, lead economist and lead author of the World Bank report.
The World Bank Report predicts that due to the trajectory of weaker global economic activity, the growth of remittances to low-and-middle income countries is expected to soften further to 3.1% in 2024. This moderated forecast is driven by slowing economic growth and the prospect of weaker job markets in several high-income countries.