India Top Global Remittance Recipient
India emerged as the top recipient of remittances in 2024, with an estimated inflow of $129 billion, surpassing Mexico, China, the Philippines, and Pakistan,
Remittance inflows globally grew at an estimated rate of 5.8 per cent in 2024, significantly higher than the 1.2 per cent growth recorded in 2023.
"The recovery of the job markets in the high-income countries of the Organization for Economic Co-operation and Development (OECD), following the onset of the pandemic, was the key driver of remittances," the blog post stated.
Officially recorded remittances to low- and middle-income countries (LMICs) are expected to reach $685 billion in 2024, reinforcing their position as a crucial source of external financial flows.
Remittances have consistently outpaced other financial inflows, driven by migration pressures stemming from demographic shifts, income disparities, and climate change.
The report noted that the gap between remittances and Foreign Direct Investment (FDI) is expected to widen further this year.
Over the past decade, remittances grew by 57 per cent, while FDI declined by 41 per cent, reflecting the resilience of remittances even during global economic uncertainties.
"Countries need to take note of the size and resilience of remittances and find ways to leverage these flows for poverty reduction, financing health and education, financial inclusion of households, and improving access to capital markets for state and non-state enterprises," the report suggested.
The Indian sub-continent is projected to lead regional growth in remittance flows, with an 11.8 per cent increase in 2024.