India Tops Global Remittances for 2024

December 20, 2024

India continues to lead the world in remittances, with non-resident Indians (NRIs) sending home a remarkable $129 billion in 2024, marking an increase from the previous year’s remittance of Rs 8.95 lakh crore. The World Bank report confirms India’s position as the largest recipient, outpacing Mexico, China, the Philippines, and Pakistan.

Growth in Global Remittances

Global remittances experienced a 5.8% increase in 2024, recovering from the pandemic’s effects. The growth is primarily attributed to improvements in the job market across OECD countries. In comparison, the growth rate was only 1.2% in 2023, indicating a strong rebound.

Traditionally, Gulf countries have been major contributors to remittances. However, developed nations such as the United States, United Kingdom, Australia, and Canada are becoming increasingly sources. This shift reflects changing migration patterns and economic opportunities in these countries.

Remittances to Low and Middle-Income Countries

Recently, remittances to low and middle-income countries (LMICs) are projected to hit $685 billion. South Asia is expected to lead this growth, with India, Pakistan, and Bangladesh experiencing the largest increases. The region’s growth rate is forecasted at 11.8%.

Historical Context of India’s Remittance Dominance

India first surpassed $100 billion in remittances in 2022, receiving $111.22 billion that year. This milestone telld the vital role of the Indian diaspora in supporting the nation’s economy and development.

Experts highlight that remittances extend beyond basic needs. They contribute to poverty alleviation, healthcare, and education funding. Additionally, they promote financial inclusion and enhance access to capital for governments and businesses, encouraging long-term economic growth.

GKToday Notes:
NRIs: Non-Resident Indians (NRIs) are Indian citizens living abroad. They play important role in India’s economy through remittances, contributing to foreign exchange and financial stability.
OECD: The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental organisation. It promotes policies that improve economic and social well-being worldwide, particularly among developed nations.
LMICs: Low and Middle-Income Countries (LMICs) are nations with varying income levels. They rely heavily on remittances for economic stability, with substantial growth projected in remittance inflows.
Remittance Dominance: India’s remittance dominance began in 2022, surpassing $100 billion. This achievement telld the Indian diaspora’s vital role in encouraging the country’s economic development.

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