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Indian diaspora sent record $135.46 billion home in FY25
RBI data shows that remittances, listed under “private transfers”, contributed over 10 percent to the gross current account inflows, which totaled $1 trillion in FY25.
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Pranavi Sharma - Tue, 01, Jul 2025
- 02:35 EDT
- 12
RBI logo. / RBI
The Indian diaspora sent a record $135.46 billion in remittances to India in the first half of 2025, according to the Reserve Bank of India’s (RBI) latest balance of payments data. Reported by The Economic Times, this figure marks a 14 percent increase over the previous fiscal year, making it the highest level of inward remittances received by the country.
India has consistently been the world’s top recipient of remittances for more than a decade. The inflows have more than doubled since 2016-17, when the figure stood at $61 billion.
The RBI data show that remittances, listed under “private transfers”, contributed over 10 percent to the gross current account inflows, which totaled $1 trillion during the fiscal year ending March 31.
“The strong growth in remittances has persisted despite weakness in crude oil prices,” Gaura Sengupta, chief economist at IDFC First Bank, told The Economic Times. “This is a result of rising share of the skilled labour force migrating to developed markets such as the US, UK and Singapore.” She added, “As per RBI data, these three countries account for a 45 percent share in total remittances. Meanwhile, the share of GCC countries has been reducing.”
Oil prices have traditionally influenced remittance flows from Gulf Cooperation Council (GCC) nations. A drop in oil prices typically dampens the ability of migrants in the region to send money home.
According to an RBI research paper, India remains one of the most cost-effective destinations for sending remittances of $200, which likely contributes to the continued growth in such flows.
Remittances were not the only major source of current account inflows. Software services income and business services income each exceeded $100 billion last fiscal year. Together, the three categories — remittances, software, and business services — made up more than 40 percent of India’s gross current account inflows.
“India’s remittance receipts have generally remained higher than India’s gross inward foreign direct investment (FDI) flows, thus establishing their importance as a stable source of external financing,” The Economic Times reported, quoting an RBI staff report based on a remittance survey. These inflows also play a significant role in financing India’s trade deficit. In FY24, gross inward remittances were equal to 47 percent of the country’s merchandise trade deficit of $287 billion.
World Bank data cited in the report show that India led global remittance receipts in 2024, followed by Mexico with $68 billion and China with $48 billion.
An RBI paper published in its March 2025 monthly bulletin explained that most inward remittances to India are personal transfers from Indian workers living abroad, including withdrawals from non-resident deposit accounts.
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