Indian Diaspora Remits Record $135.46 Billion in FY25

Remittances from the Indian diaspora reached an unprecedented $135.46 billion in the last fiscal year, according to new data released by the Reserve Bank of India (RBI). The figure marks a 14% year-on-year increase and more than double the amount recorded in 2016–17, when remittance inflows stood at $61 billion.

India continues to hold its position as the world’s leading recipient of remittances, with this latest surge underlining the critical economic role played by its global diaspora. Remittance inflows accounted for over 10% of India’s total gross current account inflows, which crossed $1 trillion in FY25.

The rise in remittances comes despite global economic headwinds and declining crude oil prices. Gaura Sengupta, Chief Economist at IDFC First Bank, attributed the growth to an increasing number of skilled Indian workers migrating to developed economies. “The US, UK, and Singapore now contribute 45% of total Indian remittances, while the share from GCC nations continues to decline,” she noted.

According to the RBI, the bulk of the inflows come from personal transfers, including funds sent for family maintenance and withdrawals from non-resident deposit accounts. These transfers have consistently outpaced foreign direct investment (FDI) inflows, making them a reliable and stable source of external financing.

In FY25 alone, gross inward remittances helped cover 47% of India’s merchandise trade deficit, which was estimated at $287 billion. Alongside income from software and business services each exceeding $100 billion remittances have become a foundational component of India’s external economy.

World Bank data ranks India as the top global remittance destination, followed by Mexico with $68 billion and China with $48 billion in 2024.

With inflows now at historic highs, India’s diaspora continues to demonstrate its enduring economic impact not just as migrants, but as vital financial contributors to the country’s development.