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India’s Diaspora Remittances Surge to Record $135.46 Billion in FY25

They now serve as India’s most reliable external funding source through covering nearly half of the merchandise trade gap, outstripping foreign direct investment.

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US Dollar banknotes are seen in this illustration taken July 17, 2022. Representational Image/Reuters
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Overview

  • In FY25, diaspora transfers jumped 14% to a record $135.46 billion.
  • Remittances accounted for over 10% of India’s $1 trillion current account inflows.
  • The United States, United Kingdom and Singapore now supply 45% of all transfers, while remittances from Gulf Cooperation Council countries have declined with weaker oil-linked flows.
  • These private transfers financed 47% of the $287 billion merchandise trade deficit, easing external deficit pressures.
  • Inflows have more than doubled since 2016-17 and now outpace gross inward foreign direct investment, underscoring their stability.