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India's Remittances Soar: High Costs Hamper Global Reach
16 Sep
Summary
- India's remittances exceed 3% of GDP, highest among top economies.
- Remittance costs in Australia and Saudi Arabia are double UN targets.
- India's UPI links connect with only three of ten major remittance countries.
India's personal remittances have become a vital economic component, accounting for over 3% of its GDP in 2025, the highest among major global economies. While most transactions are for amounts under $200, a substantial share also involves sums over $500. This highlights the importance of the UN's 2030 goal to lower the average cost of sending $200 to 3% or less.
As of the third quarter of 2025, several of the top 10 remittance-sending countries still have costs exceeding this target, with Australia and Saudi Arabia facing double the desired rate. India currently has Unified Payments Interface (UPI) links with only three of these ten countries: the UAE, Singapore, and Qatar. Enhancing these cross-border payment connections is seen as a key fintech priority to reduce remittance costs for the Indian diaspora.
