Diaspora Remittances Hit $135B, Boosting India's Economy

The Reserve Bank of India attributed the surge to a growing skilled diaspora and cheaper digital transfer channels, which have lowered transaction costs and encouraged more frequent sending.

Remittances now account for roughly 3% of India's GDP, according to World Bank data, and have become a more reliable source of foreign exchange than portfolio investments, which can flee during market volatility.

Economists note that the inflows help stabilize the rupee and support household consumption in states like Kerala, Punjab, and Tamil Nadu, where overseas workers are concentrated.

The government has introduced measures such as the 'Remittances Made Easy' campaign and bilateral agreements with Gulf nations to formalize and track flows, aiming to sustain the growth in the coming years.