Indian migrants abroad remitted a record $129.4 billion to their country in 2024, including the all-time high quarterly remittance of $36 billion during the quarter ended December, based on RBI data released recently. India continues to be the world's leading receiver of remittances by far, outstripping second-place Mexico by $68 billion.
Chasing India, China takes third place with $48 billion, the Philippines fourth at $40 billion, and Pakistan fifth at $33 billion, based on World Bank data collated by economists.
Remittances' growth rate in 2024 is forecasted to be 5.8%, an increase from the 1.2% growth experienced in 2023, based on the World Bank.
The Indian diaspora population abroad has jumped from 6.6 million in 1990 to 18.5 million in 2024, while the percentage of India's share in the world's migrants has increased from 4.3% to more than 6% between these two dates. Half of all Indian diaspora populations live in Gulf countries.
The robust post-COVID-19 job market recovery in high-income countries, especially among the Organisation for Economic Co-operation and Development (OECD) nations, has been a significant driver of remittance inflows. In the United States, the foreign-born employment rate has continued to increase steadily, standing at 11% above pre-pandemic levels in February 2020.
For low-and-middle-income countries (LMICs), remittances are forecast to hit $685 billion in 2024, as per World Bank estimates.
The World Bank observes that remittances are still outpacing other external financial flows such as foreign direct investment (FDI) in LMICs and are poised to continue increasing as a result of migration pressures driven by demographic factors, income inequalities, and climate change.
In the last ten years, remittances to LMICs have increased by 57%, whereas FDI has declined by 41%, further indicating the increasing significance of remittances as a source of economic support for most countries. The World Bank report indicates that this trend will continue, fueled by powerful global migration forces.
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