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International Relations GS 2 In the news 3 times

India's Remittance Economy

India has been the world's largest recipient of remittances for over two decades. Remittances constitute approximately 3–4% of India's GDP — a figure that exceeds Foreign Direct Investment (FDI) and Official Development Assistance (ODA) combined in most years. The World Bank's 2024 data shows India's share in global remittances reached 14.3%, its highest ever. Remittances provide a stable, counter-cyclical foreign exchange inflow that supports the Indian rupee and current account balance.

Key details
  • India received approximately $129 billion in remittances in 2025 — far ahead of Mexico ($68 billion) and China ($48 billion).
  • GCC countries contribute roughly 40% of India's total remittances despite housing only about one-quarter of the overseas Indian population.
  • States most dependent on Gulf remittances: Kerala (where remittances constitute ~35% of state income), Tamil Nadu, Andhra Pradesh, Telangana, and Uttar Pradesh.
  • UAE is the single largest source country of remittances to India.
In the news

Tracked since March 19, 2026 · last seen June 08, 2026 · updates as the daily brief publishes

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