Remittance inflows reach $135.5 bln in FY25, up 14% on year, says fin min
This story was originally published at 15:06 IST on 28 July 2025
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--Fin min: Remittance inflows tops $135.5 bln in FY25, up 14% on year
NEW DELHI – India continues to be "leading destination for global remittances", with inward remittances to the tune of $135.5 billion in 2024-25 (Apr-Mar), up 14% on year, the finance ministry said Monday. "These inflows now comprise over 12% of total current account receipts in FY25 and play a crucial role in supporting household consumption and maintaining macroeconomic stability," the ministry said in its Monthly Economic Review for June.
India's current account deficit totalled $23.3 billion in FY25, accounting for 0.6% of GDP, lower than the $26 billion in FY24, or 0.7% of GDP. "This improvement was primarily driven by a stronger performance in net invisibles, particularly due to robust growth in services exports and private remittances," the ministry said.
Although experts remain hopeful about India continuing to be a top remittance-receiving nation, the Asian Development Bank, in its outlook for July, said India could lose remittance worth $315 million from the US due to Washington's 1% tax on foreign remittances. India being US' top remittance receiving country, New Delhi's loss would be the largest in absolute terms, but it amounts to just 0.01% of GDP, the multilateral development bank said last week.
Under US President Donald Trump's "Big, Beautiful Bill," which was passed in the US senate early July, 1% tax is set to be imposed on remittances from January 2026. The final rate of 1% adopted by US Congress is much lower than the originally proposed 5%. End
US$1 = INR 86.58
Reported by Priyasmita Dutta
Edited by Vandana Hingorani
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