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India’s Record $118.7 Billion Remittances in FY24

31 May 20251 min read
ECONOMYIndia’s Record$118.7 BillionRemittances inFY2431 May 2025safalsetu.com

Why in the news

RBI’s Sixth Round of India’s Remittances Survey (March 2025) showed record inflows that financed over half of the merchandise trade deficit.

Key facts

  • Advanced economies (US, UK, Canada, Australia, Singapore): 51.2%; US up from 23.4% in 2020-21.
  • Reflects more skilled migrants and students; they remit steadily but may settle abroad.
  • Concentration: transfers over ₹5 lakh made 29% of value, 1.4% of volume.
  • Average cost to send $200: 4.9%, versus 6.65% globally; SDG target 3%.
CorridorDigital share
Saudi Arabia92.7%
UAE76.1%
Germany55.1%
Canada40.0%
Italy35.0%

Gaps

  • Bihar, Uttar Pradesh, Rajasthan received under 6% combined, owing to uneven migration support.
  • No household data on end-use; savings-linked products and financial literacy proposed.

Exam angle

  • Survey: RBI Sixth Round.

Test yourself

1. What was India's record inward remittance figure in 2023-24, per RBI's sixth survey?

Inward remittances hit a record $118.7 billion.

2. What share of India's remittances came from the United States, according to the survey?

The US share rose to 27.7% from 23.4% in 2020-21.

3. The SDG benchmark target for the cost of sending remittances is what percentage?

India's average cost for $200 is 4.9% against an SDG target of 3%.

This topic is part of Daily Current Affairs 31 May 2025 (18 topics).

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