Global Indians Sent Whopping Rs 1,09,79 Crore Back Home In 2024; Highest In World - Numbers

India remains the largest recipient of remittances in 2024, with an estimated inflow of $129 billion, followed by Mexico ($68 billion), China ($48 billion), the Philippines ($40 billion), and Pakistan ($33 billion). This marks a significant 5.8% growth in global remittances compared to 1.2% in 2023, according to World Bank economists.

Remittance Inflows of Top Ten countries 2024

Remittance Inflows: Drivers of Growth

The recovery of job markets in high-income OECD countries post-pandemic was a key factor driving this growth. Migration pressures, income disparities, and climate change also contributed to the steady rise in remittance flows.
 

Remittance Inflows: Significance for Smaller Economies
For smaller economies, remittances play a crucial role in supporting GDP. Tajikistan leads with remittances accounting for 45% of GDP, followed by Tonga (38%), Nicaragua (27%), Lebanon (27%), and Samoa (26%). These inflows help fund fiscal deficits and stabilize current accounts.
 

Global Trends in Remittances

Remittances to low- and middle-income countries (LMICs) are projected to reach $685 billion in 2024, outpacing other financial inflows like Foreign Direct Investment (FDI). Over the last decade, remittances grew by 57%, while FDI declined by 41%, emphasizing the increasing reliance on remittance inflows.
 

Policy Recommendations

The World Bank suggests leveraging the resilience of remittance flows to:

• Reduce poverty and fund critical sectors like health and education.
• Enhance financial inclusion for households.
• Improve access to capital markets for both state and private enterprises.

These measures can help countries maximize the impact of remittance inflows on economic development.