Cross-Border Remittance

Cross-Border Remittance, often simply referred to as remittances, is the process by which migrants send money back to their families and communities in their country of origin. This flow of funds is one of the most stable and significant sources of external financing for low- and middle-income countries (LMICs), often surpassing Foreign Direct Investment (FDI) and official development assistance. The sheer scale of this activity underscores its profound global economic impact: in 2024, global remittance flows were estimated to have reached approximately $905 billion, an increase of 4.6% from the previous year, demonstrating its resilience even in the face of global economic volatility. For countries like India, which is consistently the world's largest recipient, remittances can account for a substantial portion of the Gross Domestic Product (GDP), providing a crucial buffer against poverty and economic shocks. For example, in 2023, India received over $125 billion in remittances, a figure that highlights the massive scale of this financial lifeline.