Indian diaspora remittances hit a record $135.46 billion in FY25

India received a record $135.46 billion in remittances from its overseas citizens in FY25, a 14% jump over the previous year, Reserve Bank of India (RBI) data showed.

That keeps India the world’s top recipient of remittances for over a decade.

The US, UK, and Singapore were the biggest sources of these inflows, which accounted for over 10% of India’s total gross current account receipts of $1 trillion in the year ended 31 March.

Remittance inflows have more than doubled since FY17, when India received $61 billion.

The increase is largely driven by the growing number of skilled Indians moving to developed economies, the RBI noted.

Personal transfers for family maintenance and withdrawals from non-resident deposit accounts remain the biggest components.

At $135 billion, remittances now cover nearly half—47%—of India’s merchandise trade deficit of $287 billion in FY25.

RBI said remittances have consistently exceeded gross inward foreign direct investment (FDI) flows, underlining their role as a stable source of external financing.

India also earned over $100 billion each from software services and business services exports in FY25. Together with remittances, these three segments contributed more than 40% of the country’s current account inflows.

Remittance costs remain low by global standards. An RBI paper said India was among the least expensive countries to send $200 to, although transfers from Gulf nations continue to be influenced by oil prices.

According to World Bank estimates, India was followed by Mexico and China in 2024, with receipts of $68 billion and $48 billion, respectively.

Remittances are recorded in the balance of payments under two IMF-defined categories: compensation of employees under the primary income account and personal transfers under the secondary income account.