India Leads Global Remittances With $129 Billion in 2024, Outpacing Neighbors
India has retained its title as the world’s leading remittance recipient in 2024, receiving $129 billion, nearly matching the combined budgets of Pakistan and Bangladesh. This inflow significantly exceeds foreign direct investment (FDI) and India’s defense budget, highlighting the remarkable influence of remittances on the nation’s economy. Over ten years, India has amassed nearly $1 trillion in remittances, demonstrating their critical role in supporting families and economic growth.
India continues to lead the world in remittance receipts, with an impressive $129 billion in inflows from its diaspora in 2024. This figure not only far exceeds the remittances sent to other countries but is also nearly equivalent to the total annual budgets of Pakistan ($67 billion) and Bangladesh ($68 billion) combined. Furthermore, India’s remittance inflow is nearly double that of Mexico, the second-highest recipient, which garnered $68 billion.
The World Bank’s assessment highlights a steady trend in Indian remittances, having consistently received more than $100 billion annually for the last five years, barring the anomaly of 2020 when the COVID-19 pandemic impacted global financial flows, resulting in $83 billion. This year, remittances have shown an estimated growth rate of 5.8%, a significant increase from a mere 1.2% growth in 2023.
Remarkably, remittances to India have outstripped foreign direct investment (FDI) inflows, which were recorded at $62 billion for the quarter ending September 2024. Notably, remittances have also surpassed the Indian defense budget for 2024 by more than $55 billion, underscoring their critical role in the nation’s economy.
Over the past decade, cumulative remittances received by India have surged by 57%, totaling approximately $1 trillion ($982 billion) between 2014 and 2024. The inflow figures have demonstrated consistent year-on-year growth, highlighting the robust connections maintained by the Indian diaspora with their homeland.
Remittances have increasingly become a vital component of the Indian economy, particularly as they provide essential financial support to families and contribute significantly to domestic consumption and investments. With millions of Indians residing abroad, their remittances have helped alleviate poverty and promote economic stability in the country. The upward trend in remittance flows, despite global economic challenges, emphasizes the strong bonds between the diaspora and India, along with the effective use of remittances for development purposes.
In summary, India maintains its position as the foremost recipient of remittances globally, receiving $129 billion in 2024. This amount not only exceeds that of other significant recipients but also plays a vital role in strengthening the country’s economy. The sustained growth in remittance inflows reaffirms the critical support offered by the Indian diaspora, showcasing their enduring connection to India despite geographical distances. The robust remittance figures illustrate their importance in bolstering various sectors within the Indian economy.
Original Source: www.ndtv.com
Post Comment