Economic Survey 2023-2024 predicts remittance growth of 3.7%, to reach $129 billion by 2025, boosted by UAE, Singapore

The Economic Survey 2023-24, presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on Monday, July 22, projects a steady increase in remittance inflows to the country over the next two years.

According to the survey, remittances to India are expected to grow by 3.7 per cent in 2024, reaching an impressive USD 124 billion. This upward trend is forecasted to continue into 2025, with a projected 4 per cent growth that would bring the total remittance inflow to USD 129 billion.

“The outlook for remittance in India for 2024 is strong, with the expectation that remittance growth will moderate to 3.7 per cent, taking remittance levels to USD 124 billion in 2024, as per the survey. 

The survey says the diversification of India’s migrant pool between a large share of highly skilled migrants employed mostly in high-income OECD markets and the less-skilled migrants employed in the GCC markets is likely to lend stability to migrants’ remittances in the event of external shocks. 

"India’s efforts to link its Unified Payments Interface (UPI) with source countries such as the United Arab Emirates (UAE) and Singapore are expected to reduce costs and speed up remittances,” as per the survey.

This positive outlook on remittances came as part of a broader economic forecast that conservatively estimates India's real GDP growth for FY25 at 6.5-7 per cent. The survey, prepared under the supervision of the chief economic adviser, provides a comprehensive overview of the country's economic state and future prospects.

While the remittance growth is a highlight, the survey also touches on other economic indicators. Inflation, for instance, is expected to align progressively with the target, with the RBI projecting headline inflation at 4.5% in FY25 and 4.1% in FY26.

The Economic Survey, an annual document that precedes the Union Budget, is crucial for policymakers and investors alike. It offers insights into various sectors of the economy, including foreign direct investment, artificial intelligence's impact on the workforce, and the performance of India's banking and financial sectors.

As India positions itself as a key player in the global economy, the projected remittance growth underscores the country's strong ties with its diaspora and increasing importance in international financial flows. This steady influx of foreign currency is expected to contribute significantly to India's economic stability and growth in the coming years.