India Remittance Market Research Report, 2029

India is the largest recipient of remittances globally, with a substantial proportion of its population relying on funds sent by relatives working abroad. The remittance market in India plays a pivotal role in the nation's economic development, contributing significantly to its GDP. Indian workers, particularly those in the Gulf Cooperation Council (GCC) countries, the United States, Canada, and the United Kingdom, send money back home to support their families, fund education, healthcare, and contribute to local economies. Remittances are a crucial source of income for millions of households in India, especially in rural areas, where financial access may be limited. These funds not only support household consumption but also contribute to poverty alleviation and improve the standard of living in various parts of the country. The remittance market in India has traditionally been dominated by non-digital methods such as banks and money transfer operators (MTOs), which offered reliable services but at a higher cost and with slower processing times. However, over the past few years, there has been a significant shift toward digital remittance platforms. These platforms, including mobile applications, digital wallets, and online banking services, have made it easier, cheaper, and faster for both the senders and receivers. India’s high internet penetration and the rise of mobile-based financial services have played a key role in the expansion of digital remittances. These digital solutions are transforming the remittance landscape by enabling faster cross-border transactions with lower fees, making remittance services more accessible and efficient for Indian migrants and their families. According to the research report "India Remittance Market Research Report, 2029," published by Actual Market Research, the India remittance market is anticipated to grow at more than 7.23% CAGR from 2024 to 2029. According to recent reports, India remains the top recipient of remittances in the world, with billions of dollars flowing into the country each year. The majority of remittance inflows are from migrant workers based in countries like the United Arab Emirates, the United States, Saudi Arabia, and Qatar, followed by other regions such as Europe and Australia. The remittance market in India is heavily influenced by the migration patterns of Indian workers, who predominantly work in the Middle East, North America, and Southeast Asia. These remittances are essential for supporting the financial needs of families, improving living standards, funding education, and investing in housing and healthcare. In rural and semi-urban India, remittances are often the primary source of income for households, helping to stimulate local economies and improve the quality of life. The government has also made efforts to facilitate remittance inflows by reducing transaction costs and promoting the formal channels for remittances. India's remittance market has been undergoing a significant transformation, largely driven by the rise of digital platforms. As the use of smartphones and mobile internet has proliferated, remittance services such as Paytm, Google Pay, and PhonePe have become increasingly popular, offering low-cost, fast, and easy ways to send money across borders. These digital platforms are not only reducing the cost of remittance transactions but also enhancing financial inclusion by providing migrants with access to banking services through their mobile phones. The expansion of these digital services is expected to continue, further driving the growth of the remittance market in India, making it easier for migrant workers to send money home and for recipients to access funds more conveniently.

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In India, the remittance market is segmented into inward and outward remittances. Inward remittances refer to the funds sent by foreign workers to their families in India. These remittances are crucial for millions of households and have a profound impact on economic stability in rural and economically disadvantaged areas. Indian migrant workers, particularly in the Middle East and Southeast Asia, send money back to their families to cover daily expenses, medical costs, education fees, and other essential needs. Inward remittances contribute significantly to poverty alleviation and play a central role in improving the standard of living for many Indians. On the other hand, outward remittances are funds sent by Indian expatriates and migrant workers to their families or businesses abroad. The volume of outward remittances from India has been growing steadily, driven by the increasing number of Indian workers overseas, particularly in countries like the United States, Canada, and the United Arab Emirates. Outward remittances also include funds sent by Indian businesses and professionals working abroad for investment or savings purposes. Both inward and outward remittances are facilitated by a wide range of financial service providers, including banks, money transfer operators (MTOs), and digital platforms. These remittances help maintain strong economic ties between India and the rest of the world, and their continued growth is expected to bolster India's position as a global remittance hub. As digital platforms continue to gain popularity, the ease and speed of sending remittances both in and out of India will increase, further driving market growth. The remittance market in India is divided into two primary categories based on the platforms used for transferring money: non-digital and digital platforms. Non-digital platforms primarily include banks and money transfer operators (MTOs) such as Western Union, MoneyGram, and others. These platforms have been the traditional means of remitting money to India, offering secure and reliable transfer methods. However, these services are often associated with higher fees, slower transfer times, and a more complex user experience, which makes them less attractive for many users, especially younger migrants who are more tech-savvy. On the other hand, digital remittance platforms have gained immense popularity in India, as they offer faster, cheaper, and more convenient ways to send money. With the advent of smartphones and mobile internet, digital wallets like Paytm, Google Pay, and PhonePe have emerged as popular platforms for remittances. These platforms offer seamless money transfers, reduced transaction costs, and faster processing speeds. Furthermore, digital solutions allow users to send money to recipients in rural areas who may not have access to traditional banking services, helping to bridge the financial inclusion gap. The increasing popularity of these digital platforms is reshaping the remittance landscape in India, allowing for a more inclusive, efficient, and cost-effective method of transferring funds. The continued growth of digital remittance services in India is expected to accelerate, providing a range of benefits for migrant workers and their families. The remittance market in India is also influenced by the channels through which money is transferred. The primary channels include banks, money transfer operators (MTOs), mobile banking and online platforms, and other emerging services. Banks have been a trusted and secure method for remitting money to India, especially for high-value transactions. However, traditional bank transfers can be slow, expensive, and cumbersome, making them less appealing for smaller remittances. Money transfer operators, such as Western Union and MoneyGram, have historically been widely used for remittance transfers due to their broad global reach and well-established networks. However, these traditional methods are also being increasingly outpaced by digital platforms. Mobile banking and online platforms, including digital wallets like Paytm, Google Pay, and PhonePe, have emerged as the dominant channels for sending remittances in India. These digital platforms offer faster transfers, lower fees, and a more user-friendly experience, making them the preferred choice for many users. Additionally, emerging channels, such as peer-to-peer (P2P) platforms and cryptocurrency-based remittance services, are gaining traction in India due to their lower transaction costs and real-time transfer capabilities. As digital financial services continue to evolve in India, these channels will provide more options for users, making remittance services faster, more affordable, and more accessible for the millions of migrant workers and their families who rely on them. With continued advancements in technology, India’s remittance market is expected to experience rapid growth, driven by the increasing preference for digital platforms and the emergence of innovative solutions.

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Kripa Shah

Senior Analyst

Considered in this report • Geography: Global • Historic Year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Global Remittance Market with its value and forecast along with its segments • Region & country wise Remittance market analysis • Application wise Remittance distribution • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Types • Inward remittance • Outward remittance

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By Platform • Non-Digital • Digital By Channel • Bank • Money Transfer Operators (MTO) • Mobile banking/Online platform • Others By End User • Business • Personal The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.