India remains world’s top remittance recipient, receives $135.4 billion in FY25

India continues to hold its position as the world’s largest recipient of remittances , with inflows reaching USD 135.4 billion in FY25, according to the Economic Survey 2025-26 tabled in Parliament by Union Finance Minister Nirmala Sitharaman.

The survey highlights that remittances from advanced economies , particularly the United States, United Kingdom, Canada, and Singapore , have grown, reflecting the increasing contribution of skilled and professional Indian workers abroad. The Gulf countries , including UAE, Saudi Arabia, Qatar, and Kuwait , remain significant sources of remittances, primarily from semi-skilled and unskilled workers employed in construction, hospitality, retail, and domestic services.

Skilled professionals working overseas are concentrated in sectors such as Information Technology (IT), finance, healthcare, and education , while labor-intensive sectors continue to be dominated by semi-skilled workers in the Gulf region.

Remittances play a key role in stabilizing India’s external account, supporting the current account, and contributing to foreign exchange reserves. India’s foreign exchange reserves stood at USD 701.4 billion as of January 16, 2026, covering approximately 11 months of imports and 94 per cent of external debt, underscoring the resilience of the country’s external sector.

The Economic Survey also notes that India remains the largest recipient of foreign direct investment (FDI) in South Asia , surpassing major peers such as Indonesia and Vietnam, and ranked fourth globally in Greenfield investment projects in 2024 , with significant inflows in the digital sector.

Experts say that the combination of strong remittances, FDI inflows, and robust reserves ensures India’s external sector stability , even amid global economic uncertainties.