India received a record-breaking $135.46 billion in diaspora remittances during the 2024–25 fiscal year, registering a 14% year-on-year growth, according to the Reserve Bank of India’s latest balance of payments data. These remittance inflows—categorized under “private transfers”—continue to keep India at the top spot globally for cross-border income from its overseas citizens.
This remarkable growth marks more than double the amount received eight years ago, when the country recorded $61 billion in FY17. The remittances in FY25 constituted over 10% of India’s total current account inflows, which amounted to $1 trillion, playing a pivotal role in stabilizing the country’s balance of payments.
Economists note that this surge has taken place despite a slump in crude oil prices, which typically impacts remittances from Gulf Cooperation Council (GCC) nations. The increase is largely attributed to a growing number of skilled Indian professionals relocating to developed economies such as the United States, United Kingdom, and Singapore, which now collectively account for 45% of the remittance share, as highlighted by Gaura Sengupta, chief economist at IDFC First Bank. In contrast, the GCC’s contribution is seeing a gradual decline.
These remittances are not only helping families back home but are also a vital source of external financing, often outpacing India’s foreign direct investment (FDI) inflows, according to an RBI staff study. For perspective, the FY25 inward remittances covered nearly 47% of India’s merchandise trade deficit, which stood at $287 billion.
In addition to remittances, software services and business services income also contributed more than $100 billion each to India’s current account. Together, these three sources made up over 40% of all inflows, highlighting their central role in the nation’s economic resilience.
The World Bank’s 2024 report reconfirmed India’s top position globally in receiving remittances, with Mexico and China trailing significantly at $68 billion and $48 billion, respectively.
A March 2025 RBI bulletin further clarified that India’s inward remittances mainly comprise personal transfers for family support, and withdrawals from non-resident deposit accounts, following the IMF’s remittance classification framework from 2009.
