NEW DELHI (Diya TV) — India has returned to the top spot among the world’s largest recipients of remittances. According to new data by the World Bank, remittances reached a record-high $129 billion in 2024. This record influx is proof of how the Indian diaspora helps boost the country’s economy.

The remittance figure outstripped India’s Foreign Direct Investment (FDI), which stood at $62 billion by the end of the September quarter, and exceeded the country’s defense budget by over $55 billion. The remittances are nearly equal to the combined annual budgets of neighboring nations, Pakistan ($67 billion) and Bangladesh ($68 billion), thereby underlining their enormous influence.

The steady increase in remittances over the last ten years has contributed to India’s economic growth and stability. India’s remittance inflows have increased by 57% between 2014 and 2024, amounting to $982 billion in cumulative total. The country crossed the $100 billion mark in 2021 and continues to see an upward trend now reaching a record high in 2024.

Even during the COVID-19 pandemic in 2020, India secured $83 billion in remittances, illustrating the resilience of these flows in the face of global economic challenges.

The surge has been largely driven by India’s diaspora community, especially in high-income countries such as the United States. Job market recovery in the U.S. has been a critical factor, with employment levels among foreign-born workers up 11% above pre-pandemic levels. This recovery has helped maintain strong remittance flows back to India.

On the world scale, remittances inflows from India outshone any other country. Mexico accounted for $68 billion; China had $48 billion, followed by the Philippines with $40 billion and Pakistan at $33 billion. Such a large disparity in the amount of remittances positions India on the global leader’s position and gives evidence of its expatriate community strength and contributions.

Remittances act as an economic lifeline for Indian families by reducing poverty, ensuring healthcare, education funding, and financial inclusion. It has been an effective stabilizer in economic crises and has been one of the vital sources of foreign exchange for India, being more significant than even FDI.

“India’s diaspora remains a key plank of the nation’s economic resilience,” said a World Bank economist, referring to the critical role of remittances in supporting the country’s growth and development.