~Samriddhi Singh Mahar
India’s outward remittances rebounded from previous declines, sharply to USD 2.7 billion in January 2025 from USD 2.4 billion in December 2024, a nearly 20% increase. This brings remittances back to the same level as in September 2024, as per the latest data by 1Lattice.
In January 2025, travel expenses accounted for 59%, followed by education, family maintenance and gift 13%, 11% and 8% respectively.
In comparison, in December 2024, travel expenses accounted for 57%, followed by family maintenance, education, and gifts, which contributed 12%, 10%, and 8%, respectively.
The sharp rise in outward remittances for education may be driven by rising tuition fees and the start of the spring semester at universities abroad in January.
The investment in equity debt has seen varying trends in the past couple of months, with it falling by approximately 41.34% from December 2024 to January 2025.
As per the latest RBI survey, India’s remittance receipts have consistently exceeded gross inward foreign direct investment (FDI) flows, highlighting their role as a stable source of external financing.
Investments in equity debt went from USD 179 million in December 2024 to USD 105 million in January 2025. The decline matches the investor sentiments of wariness towards the volatility of the market.India’s Remittances Survey, RBI
After a 3.6% decline in 2020-21 due to the pandemic, remittances rebounded strongly in the post-pandemic years (2021-22 to 2023-24), growing at an average annual rate of 14.3%.
