India continues to maintain its crown as the world’s top recipient of diaspora remittances, with inflows hitting a record $135.46 billion in the 2024–25 fiscal year. This figure represents a 14% increase from the previous year and highlights the growing economic influence of the Indian diaspora across the globe. However, emerging policy shifts in major host countries-especially the United States-signal potential threats to this vital financial lifeline.

According to data cited by The Economic Times, the $135.46 billion in remittance inflows accounted for over 10% of India’s gross current account receipts, which totaled $1 trillion. These remittances are classified under “private transfers” in India’s current account and have traditionally played a significant role in bolstering the nation’s external finances.

In a report by the Reserve Bank of India (RBI), the central bank underscored the continued importance of remittance receipts, stating that they “have generally remained higher than India’s gross inward foreign direct investment flows.” This observation emphasizes that while FDI remains volatile and sensitive to global capital trends, remittances have proven to be a more consistent and reliable source of foreign exchange.

The Indian diaspora is spread across more than 100 countries, but a handful of host nations account for the bulk of remittance inflows. According to The Indian Express, the United States led the pack, contributing 27.7% of total remittances to India in 2024–25. The United Arab Emirates followed with 19.2%, while the........

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