India (Commonwealth) _India received the largest number of remittances ever received by any nation in any one year, with an estimated $129.1 billion in 2024. In addition, India’s proportion of international remittances this year was 14.3%, the highest percentage of any nation since the year 2000. Based on a World Bank blog post from last week, the findings were drawn.
People who work overseas send money home to support their family, which is known as remittances. They can provide a substantial economic contribution to the recipient nation and are frequently a vital source of income for households in developing nations.
The other nations on the list are France, Bangladesh, Egypt, Germany, the Philippines, and Guatemala. Even though China ranked third, the data from previous years offers some intriguing insights.
By generating $129.1 billion in remittances in 2024—the most remittance inflow for any nation in a single year—India has reached a historic milestone. India accounted for 14.3% of global remittances in 2024, the most share of any nation since 2000, according to a recent World Bank blog.
Money returned home by people who work overseas is known as remittances, and it frequently provides a lifeline for homes in underdeveloped countries. In addition to raising household incomes, these inflows are essential to the economic stability of the recipient nation, particularly in countries with poor and medium incomes.
China and Mexico came in second and third place after India’s record-breaking remittances.
The remittance patterns from China provide an intriguing viewpoint. China’s remittance share dropped precipitously to 5.3% in 2024, a two-decade low, even though it had matched India’s in the late 2000s.
The World Bank ascribes this reduction to China’s aging population and growing economic success, which have slowed the rate at which less-skilled individuals are leaving the country.
On the other hand, since 2000, India’s remittance contribution has continuously remained above 10%, with notable increases in the years after the epidemic. In 2024, India’s proportion of international remittances was over double that of Mexico (7.5%).
Remittances continue to be a vital source of revenue for low- and middle-income nations. Remittances to these countries totaled $685 billion in 2024, the most ever in a single year. Other financial flows, like official development assistance (ODA) and foreign direct investment (FDI), have continuously lagged behind these inflows.
ODA is aid given by wealthier countries to poorer ones, frequently in the form of grants or concessional loans, whereas FDI entails foreign investments in firms. But when it comes to their size and direct influence on households, remittances outweigh both.
Before progressively dropping to less than 10% in the late 2010s, China’s proportion of remittances increased from a little over one percent in the beginning of the 2000s to over 10% by the end of the 2000s and early 2010s, reflecting India’s figures.
The share fell sharply from 2020 to 2024, when it hit a two-decade low of 5.3%. The World Bank claims that this reduction was caused in part by China’s aging population and growing economic prosperity, which slowed the rate of emigration of those with lower levels of education.
Since 2000, India’s contribution has, for the most part, stayed over the 10% threshold. In reality, its share has rapidly increased in the years after the outbreak. In terms of worldwide remittances, India accounted for twice as much as Mexico in 2024 (7.5%), with Mexico coming in far behind.
Even though India receives the most remittances overall, they are more important in certain economies for covering fiscal shortfalls and current account deficits.
In 2024, remittances accounted for more than 25% of Nepal’s GDP. In 2024, remittances accounted for more than 25% of the GDPs of Tajikistan, Nicaragua, Samoa, Honduras, and Tonga. Remittances accounted for 3.3% of India’s GDP this year.
Remittances are a significant source of revenue for many low- and middle-income nations. Remittances to these nations totaled $685 billion in 2024, the most ever in a single year. Remittances to these nations have continuously surpassed other forms of external money flows.
Remittances have even outpaced foreign direct investment (FDI) in low- and middle-income nations combined in recent years. Additionally, remittances are far greater than the official development assistance (ODA) that these nations get. In low- and middle-income countries, FDI fell 41% over the last ten years, whereas remittances rose 57%.