India cemented its position as the world’s top remittance recipient in 2024, receiving an unprecedented $129.1 billion, according to World Bank data.
Meanwhile, China’s share of global remittances fell to its lowest point in two decades, reflecting shifting migration and economic trends.
According to swarajyamag.com, a recent blog by the World Bank, India accounted for 14.3 per cent of global remittances in 2024, the highest share recorded for any country since 2000.
What Are Remittances and Why Do They Matter?
Remittances refer to money sent home by individuals working abroad, often serving as a lifeline for households in developing nations. These inflows not only improve household incomes but also play a vital role in the recipient country’s economic stability, especially in low- and middle-income nations.
India Leads, Mexico and China Follow
Following India’s record-setting remittances, Mexico and China secured the second and third positions, respectively. Other significant recipients in 2024 included the Philippines, France, Pakistan, Bangladesh, Egypt, Guatemala, and Germany.
China’s remittance trends offer an intriguing perspective. While China matched India’s remittance share in the late 2000s, its share fell sharply to 5.3 per cent in 2024—a two-decade low.
The World Bank attributes this decline to China’s rising economic prosperity and ageing population, which have slowed the pace of emigration of less-skilled workers.
In contrast, India’s remittance share has remained consistently above 10 per cent since 2000, with significant growth in the post-pandemic years. India’s share in global remittances in 2024 was nearly double that of Mexico (7.5 per cent).
A Lifeline for Developing Economies
For low- and middle-income countries, remittances remain a crucial source of income. In 2024, these nations collectively received $685 billion in remittances—the highest ever in a single year. These inflows have consistently outpaced other financial flows, such as Foreign Direct Investment (FDI) and Official Development Assistance (ODA).
While FDI involves foreign investments in businesses, ODA is aid from richer nations to poorer ones, often in the form of grants or concessional loans. However, remittances surpass both in terms of their magnitude and direct impact on households.
