New Delhi: India continues to lead globally in remittance inflows, reinforcing the strength of its external sector, according to the Economic Survey 2025–26 tabled in Parliament on Thursday.
The Survey noted that India remained the world’s largest recipient of remittances, with inflows reaching $135.4 billion in FY25, providing vital support to external account stability. A growing share of these remittances originated from advanced economies, reflecting increased participation of skilled and professional Indian workers abroad.
The Survey emphasised that enhancing manufacturing competitiveness through cost reduction is critical for strengthening India’s export performance. It added that durable external resilience and stronger currency credibility would emerge from expanding manufacturing exports, supported by disciplined industrial policy, productivity gains, and the complementary growth of high-value services.
India also attracted substantial investment inflows, with gross investment amounting to 18.5 per cent of GDP in FY25, even amid tightening global financial conditions. According to UNCTAD data, India remained the largest recipient of gross FDI inflows in South Asia, surpassing peers such as Indonesia and Vietnam.
The country ranked fourth globally in Greenfield investment announcements in 2024, with over 1,000 projects. India also emerged as the largest destination for Greenfield digital investments between 2020 and 2024, attracting $114 billion.
Between April and November 2025, gross FDI inflows rose to $64.7 billion, up from $55.8 billion during the same period a year earlier. However, the Survey observed volatility in foreign portfolio investment (FPI) flows, influenced largely by global financial developments.
India’s foreign exchange reserves climbed to $701.4 billion as of January 16, compared to $668 billion at the end of March. The reserves are sufficient to cover nearly 11 months of imports and about 94 per cent of external debt, providing a comfortable liquidity buffer.
India’s external debt stood at $746 billion at end-September 2025, with the external debt-to-GDP ratio at 19.2 per cent, while external debt accounts for less than 5 per cent of total public debt, mitigating external sector risks.
The Economic Survey concluded that India’s currency strength and external stability will continue to depend on domestic savings, export competitiveness, stable FDI inflows, and productivity-led growth.
