India Received $135.6 Billion in Remittances in FY25
By Shishta Dutta | Updated at: Oct 27, 2025 11:58 AM IST
Mumbai, 1 July 2025: India has recorded an all-time high in remittance inflows, receiving $135.46 billion in FY25-a 14% year-on-year growth, according to the latest data released by the Reserve Bank of India (RBI). This remarkable surge reaffirms India’s position as the world’s leading recipient of remittances, with these inflows now contributing over 10% to the country’s total current account receipts.
Strong Year-on-Year Growth Places India Far Ahead of Global Peers
India’s inward remittances rose from approximately $119 billion in FY24 to $135.46 billion in FY25, showcasing the strength of its global diaspora network. Notably, the country had already attracted $129.4 billion during calendar year 2024, underlining its consistent leadership in remittance receipts.
| Metric | FY24 | FY25 | Growth (YoY) |
|---|---|---|---|
| Remittance Inflows | $119 billion (approx.) | $135.46 billion | 14% |
India Widens Global Lead in Remittance Receipts
India’s remittance inflows are nearly double that of the second-ranked country, Mexico, and significantly ahead of China, the Philippines, and Pakistan. This global lead is expected to continue with a growing number of skilled and semi-skilled Indian workers abroad.
| India | $135.46 billion |
| Mexico | $68 billion |
| China | $48 billion |
| Philippines | $40 billion |
| Pakistan | $33 billion |
Gulf Region Remains a Major Driver of India’s Overseas Earnings
The RBI report indicates that nearly 50% of India’s overseas workforce is based in Gulf Cooperation Council (GCC) nations, forming the backbone of the country’s remittance ecosystem. Since 1990, the number of Indians working abroad has grown nearly threefold, from 6.6 million to 18.5 million in 2024, increasing India’s share in global migrants from 4.3% to over 6%.
Tax Cut in the US Offers Big Relief for Indian Professionals
In a major development for the Indian diaspora in the United States, the revised draft of the One Big Beautiful Bill Act, backed by former US President Donald Trump, has reduced the proposed tax on remittances from 5% to 1%. This update provides financial relief to thousands of Non-Resident Indians (NRIs) and Indian professionals regularly transferring money to families in India.
RBI and World Bank Data Reinforce the Remittance-Driven Stability
The remittance data is compiled by the Reserve Bank of India under the “private transfers” category and remains a key component of India’s current account inflows. The global country-wise remittance rankings are based on estimates from World Bank economists.
Remittances Continue to Strengthen India’s Economic Resilience
India’s dominant position in the global remittance landscape is supported by its diverse and globally active diaspora, especially in the Middle East, North America, and Europe. These consistent inflows are critical in shoring up foreign exchange reserves, mitigating external account pressures, and supporting overall macroeconomic stability.
REF: https://www.newsonair.gov.in/remittances-by-indians-working-abroad-scale-record-high-of-135-billion-in-fy25/
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