Remittances and India's Balance of Payments

India is consistently the world's largest recipient of remittances. Remittance inflows contribute approximately 3–3.5% of India's GDP and are a major stabilising component of the current account. Unlike foreign direct investment (FDI) or portfolio investment, remittances are relatively stable and counter-cyclical — they tend to hold up even during economic downturns in host countries because workers remit more to support families during crises.