ANDALIB AKHTER
Every single day, millions of migrants across the world send a quiet yet powerful message back home—one not made of words, but of money. But this money is not just currency; it is love in motion, sacrifice in numbers, and hope wrapped in a transaction. It becomes a child’s school fee, a mother’s medicine, the seed of a small business, or the bridge to a long-awaited dream. To honour this silent, steadfast lifeline, the world observes June 16 as the International Day of Family Remittances—a day to celebrate those whose hard-earned money not only supports their families but keeps entire economies afloat.
It is against this backdrop that the World Migration Report 2024 reminds us of the growing impact of remittances on global development, human resilience, and financial stability. And in this global picture, India stands tall—not just as the world’s top recipient of remittances, but as a living testament to how migration and money, when tied to emotion and purpose, can change the lives of millions of families back home.
The 2024 report shows that the global remittance flow to low- and middle-income countries (LMICs) reached a record $831 billion in 2022 and remains strong into 2024. Despite geopolitical tensions, inflation, and pandemic aftershocks, remittances have proven remarkably resilient, growing even when other financial flows like foreign direct investment and development aid have declined. In this scenario, one country stands tall—India, which continues to be the single largest recipient of remittances globally.
India’s remittance inflows crossed $111 billion in 2022 and are estimated to have reached nearly $125 billion in 2023, with further growth projected in 2024. This is not a sudden development but the result of decades of outward migration, especially to the Gulf countries, the United States, and the United Kingdom. According to the Ministry of External Affairs, India’s diaspora is over 35 million strong, with millions working as blue-collar labourers, professionals, and students abroad. Their financial contributions are not just acts of personal care but engines of national economic support. These transfers account for a significant chunk of India’s foreign exchange reserves and serve as a cushion for families, especially in rural areas where other forms of income are either unstable or insufficient.
The Gulf corridor, notably the United Arab Emirates and Saudi Arabia, remains crucial, accounting for over 40% of India’s total remittance inflows. The US and Europe follow closely, where Indian IT professionals, healthcare workers, and entrepreneurs form a major part of the skilled workforce. The World Migration Report emphasizes that even amid tighter immigration rules and economic slowdown fears, these corridors have remained surprisingly robust, owing to high demand for Indian labour and emotional ties that migrants maintain with their home country.
What makes remittances especially powerful is their direct impact on the lives of people. Unlike large-scale aid or infrastructure investments, remittances go straight into household budgets. They pay for food, education, healthcare, housing, and often serve as a safety net during emergencies. In India, they also support local entrepreneurship, help repay debts, and enable social mobility. In states like Kerala, Punjab, Uttar Pradesh, and Bihar, entire local economies have been shaped around these financial inflows.
However, the report also flags several concerns. One major issue is the high cost of sending remittances, which globally averages around 6.4% for sending $200, double the UN Sustainable Development Goal target of 3%. In some sub-Saharan and Asian corridors, costs can soar to over 8%. While digital payment platforms have helped reduce fees in urban corridors, many migrants still rely on expensive traditional agents, especially those in lower-income or rural areas with limited digital access.
Another pressing challenge is policy uncertainty in host countries. For instance, recent legislative proposals in the United States that consider taxing remittances sent by non-citizens have raised concerns among migrant communities, including Indians. If implemented, such policies may lead to a rise in informal and unregulated transfers, potentially exposing families to fraud, delays, and reduced transparency. The World Bank and other global bodies have cautioned against such barriers, suggesting that they undermine the very financial inclusion goals that the global development agenda promotes.
Yet, even amid these challenges, the World Migration Report and the International Day of Family Remittances send out a strong message of hope and recognition. More than 200 million migrant workers globally support over 800 million family members, demonstrating how migration, often seen through the lens of politics or crisis, is in fact a stabilizing human phenomenon. For India, whose economic aspirations depend in part on a global, mobile workforce, there is a clear incentive to facilitate, protect, and empower its migrant citizens.
The report suggests that India, along with other major migrant-sending nations, can do more to maximize the developmental impact of remittances. Financial literacy among recipients, better access to bank accounts and digital tools, and incentives to use formal channels are all areas that need attention. At the same time, destination countries can work toward creating safer migration pathways, transparent labour contracts, and fair recruitment practices that benefit both migrants and host economies.
India’s own policy architecture has seen improvements in recent years, including the Pravasi Bharatiya Bima Yojana (an insurance scheme for Indian workers abroad), pre-departure orientation programs, and increased bilateral agreements on labour mobility. However, experts say more can be done to build a systemic framework that supports not just the economic, but also the social well-being of migrant families. Initiatives like community-based investment schemes or matching funds for migrant households could further amplify the role of remittances in sustainable development.
According to the International Organization for Migration (IOM), in 2024 alone, migrants sent nearly 700 billion dollars to their low- and middle-income home countries. These remittances have now surpassed official development assistance and foreign direct investment received by these countries, making them one of the most reliable sources of external financing for such economies.
IOM Director General Amy Pope stated that when migrants send money back home, the benefits go beyond their immediate families — these remittances help uplift entire regions. They enable children to access education, empower women to start businesses, and provide critical support during times of crisis. When used wisely, remittances become powerful tools for development, benefiting not only the countries receiving them but also those from which they are sent.
As the world looks to an increasingly interconnected future, the story of Indian remittances is both timely and instructive. It speaks to a quiet but profound form of global cooperation, driven not by treaties or summits, but by the daily commitment of workers far from home. On the International Day of Family Remittances, their contribution deserves more than statistics—it deserves visibility, policy focus, and above all, dignity.
