Massive: The Indians Have Now Sent Over $100 Billion Home.

For the second consecutive year, the Indian diaspora has sent home a staggering amount of over $100 billion.

This significant influx of funds highlights the unwavering commitment of Indians living abroad to support their families and contribute to the economic growth of their homeland. The consistent nature of this financial flow underscores the deep-rooted ties that bind the Indian diaspora to their cultural heritage and their desire to make a positive impact on the lives of their loved ones back home.

In the fiscal year 2023–24, various factors played a significant role in shaping my remittances. Migration trends, job opportunities, and costs all impacted the amount of money sent back home. Notably, the United States emerged as the primary source of these remittances. India remains the leading recipient, driven by the migration of IT professionals to North America and Europe.

In the financial year 2023–24, overseas Indians made an impressive achievement by sending a remarkable $107 billion in remittances to their families back home. This surpasses the $100 billion milestone for the second consecutive year, showcasing their unwavering commitment to supporting their loved ones from afar. Net remittances at these levels surpass the combined amount of net foreign investments, including FDI and portfolio investments, which stood at $54 billion for the year.

The Indian diaspora’s remittances, as seen in private transfers within the balance of payments, reached a substantial amount of $119 billion in the fiscal year 2023–24. When taking into account the repatriation of income by private foreign residents and other remittances, the total amount of net private transfers comes to $107 billion.

Multiple global studies and domestic research have shown a clear connection between remittances and migration levels in various economies. These studies also highlight the impact of job opportunities and the overall situation in the countries where the remittances originate. One factor that is often taken into account when discussing overseas remittances is the cost associated with sending money abroad.

According to a recent survey conducted by the RBI, remittances in the post-Covid era have revealed some interesting findings. The United States emerged as the leading source of remittances, contributing a significant 23% to the overall total. In contrast, there was a decrease in flows from the Gulf region.

According to a survey conducted by the RBI, the majority of these remittances are believed to be used for family expenses, while some are also invested in other assets like deposits.

According to the “Migration and Development Brief” released by the World Bank in December, India maintained its position as the leading recipient of remittances from its diaspora. For more than two decades, India has consistently ranked as the leading recipient of remittances from its diaspora. This trend can largely be attributed to the significant increase in IT professionals migrating to North America and Europe starting in the 1990s.

The United States remained the leading provider of remittances. In 2023, India will lead the pack as the top remittance recipient, with a staggering $125 billion. Following closely behind is Mexico, receiving $67 billion, while China takes the third spot with $50 billion. The Philippines secures the fourth position with $40 billion, and Egypt rounds off the top five with $24 billion.

“In recent years, remittance flows to developing countries have exceeded the combined amount of foreign direct investment and official development assistance,” stated Dilip Ratha, the lead economist and author of the World Bank report.

According to the World Bank Report, remittances to low- and middle-income countries are projected to decrease to 3.1% in 2024 due to the ongoing slowdown in global economic activity. The moderated forecast is being driven by slowing economic growth and the possibility of weaker job markets in several high-income countries.