On Nov 5, 2026, a World Bank report released in Washington revealed that India attracted $150.7 billion in personal remittances during 2025, a sum more than four times the $35 billion recorded as foreign direct investment (FDI) in the same year.
The International Debt Report 2026 also noted a net portfolio equity outflow of $18.5 billion, underscoring that remittance receipts were roughly 4.3 times larger than FDI inflows.
India accounted for about 73 per cent of South Asia’s total remittance inflows, which the report estimates at $207.6 billion for 2025. Mexico ranked second among International Bank for Reconstruction and Development (IBRD) borrowers, receiving $65.1 billion.
Across regions, Latin America and the Caribbean collected $164.1 billion in remittances, making it the second‑largest recipient after South Asia.
When low‑ and middle‑income countries, excluding China, are examined together, remittance flows reached $687.1 billion in 2025, compared with $333.5 billion in FDI. The gap has widened markedly since 2011, when remittances and FDI were almost equal at $313.3 billion and $316.6 billion respectively. By 2025, remittances had more than doubled, while FDI grew by only 5.3 per cent.
The World Bank cautioned that remittances and FDI serve distinct roles: the former mainly supports household income and stabilises consumption, whereas the latter boosts productive capacity, creates jobs and transfers technology.
Despite the growing share of remittances, India remains a major FDI destination. Together with Brazil, Indonesia, Mexico and Vietnam, it accounted for 52.7 per cent of all FDI to low‑ and middle‑income economies, excluding China, in 2025.
India’s total external debt stood at $763.5 billion at the end of 2025, a 6.4 per cent rise from the previous year. The debt composition included $275.6 billion in public and publicly guaranteed obligations, $337.2 billion in private non‑guaranteed debt and $150.8 billion in short‑term liabilities.
Image: daijiworld.com
📰 Source: Daijiworld