India remains the top remittance recipient globally, receiving $118.7 billion in 2023-24. The United States is the largest remittance contributor, followed by the United Arab Emirates. The growth in remittances reflects recovered job markets in wealthier nations, especially the U.S., and denotes India’s increasing global workforce presence.

India has solidified its position as the world’s leading recipient of remittances, attracting inflows amounting to $118.7 billion for the fiscal year 2023-24. Among the countries contributing significant remittances, the United States ranks first, while the United Arab Emirates claims the second position, surprising many with its notable contributions.

According to the Reserve Bank of India (RBI) bulletin released in March 2025, the share of remittances from the United States increased from 23.4% in 2020-21 to 27.7% in 2023-24. The United Kingdom also saw a substantial increase, rising from 6.8% to 10.8% during the same period. Notably, the UAE’s contribution grew from 18% to 19.2%, reinforcing its status as a critical contributor to India’s remittance inflows.

The RBI’s bulletin highlights the evolving role of India within the global workforce and the increasing financial support from its expatriates. An update from 2024 indicates that India received an estimated remittance inflow of $129 billion, leading the world, followed by Mexico, China, the Philippines, and Pakistan. This upward trend signals a growth rate forecasted at 5.8% for the current year, in stark contrast to the 1.2% growth witnessed in 2023.

The recovery of job markets in high-income economies, particularly those belonging to the Organization for Economic Co-operation and Development (OECD), has significantly influenced this increase in remittances. This trend is notably evident in the United States, where the employment of foreign-born workers has surpassed pre-pandemic levels by 11% since February 2020.

Additionally, as per the RBI’s comparison of remittances, despite the consistent inflow of remittances into India, its ratio to GDP has remained steady at around 3% since 2000, a stark contrast to China’s 0.3%. The Philippines has consistently received higher remittances as a percentage of its GDP over the past decade, illustrating varying trends in global remittance flows.

In summary, the United States leads as the primary source of remittances to India, with the United Arab Emirates following as the second-largest contributor. The trends indicate a robust recovery in employment within high-income countries, benefitting India’s remittance inflows. Furthermore, the consistent ratio of remittances to GDP emphasizes the importance of these financial contributions to India’s economy.

Original Source: www.india.com

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