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Remittances

India as the World's Largest Recipient

Remittances — money sent home by Indians working abroad — are a critical component of India's external sector. They form part of the "secondary income" in the Current Account and consistently rank above FDI as a source of foreign exchange for India. The World Bank has consistently ranked India as the world's largest remittance-receiving country.

Key details
  • India's annual remittance inflows: Approximately USD 120–130 billion (FY2024-25 estimate)
  • Q3 FY26 remittances: USD 36.9 billion (vs USD 35.1 billion in Q3 FY25)
  • Top source countries: UAE, USA, Saudi Arabia, Kuwait, Qatar — Gulf states account for nearly 50%
  • Remittances are classified under Secondary Income in the Current Account (formerly "Current Transfers" in older IMF BPM5 framework)
  • Remittances are more stable than FDI or FPI — they are driven by diaspora obligations rather than financial market conditions
  • Under IMF BPM6, remittances include: Personal Transfers + Compensation of Employees
In the news

Tracked since March 02, 2026 · last seen April 20, 2026 · updates as the daily brief publishes

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