Foreign Remittances Into India Jump To $119 Bn On The Back Of A Weak Rupee

Foreign remittance into India has galloped to $118.7 bn in 2023-24, recording the highest growth ever of 7.6%. In 2022-23, the forex inflow was $111 bn. Remittance from the U.S. has emerged as the biggest at 27.7% followed by the UAE 19.2% and other Gulf countries, as per Reserve Bank of India’s 2025 bulletin. Now, U.S. President Donal Trump is proposing a 5% tax on all international money transfers made by non-US citizens. One key driver for the heavy inflow has been the weakening of Indian rupee vis a vis the dollar. Over the last five years, the U.S. dollar has depreciated from Rs 75.71 to Rs 85.45, a 13% drop in value. This adds more value to every dollar sent to India. Maharashtra has emerged as the highest recipient of forex at 20. 5% followed by Kerala at 19.7%. Interestingly, Kerala which has been a big dependent on remittances from the Gulf countries — UAE, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain today finds the U.S. as the biggest contributor. Incidents like 9/11, Covid-19, extreme weather conditions and obviously depreciating value of the rupee have all contributed to non-resident Indians investing in homes, land, stock market etc back home. According to sources at the International Institute of Migration and Development, remittances from the Gulf may fall in the coming years, while inflows from the U.S., the UK and Canada could rise. There are 45 lakh overseas Indians in the U.S., including 32 lakh PIOs. An international study at the FLAME University, Pune indicates that while students and skilled workers are increasingly heading West, the Gulf will remain important for many. There is a shift in migrant profile: more students, more professionals and more loans are taken to finance migration. This could help maintain strong inflows.