Remittance Growth Hinges on Immigration Policies in Advanced Economies

India's remittance growth has been resilient despite global crises and economic slowdowns. The country received over $155 billion in remittances in FY26, a 14.5% increase from the previous year.

The source of these remittances is shifting from Gulf countries to advanced economies such as the US, Canada, UK, and Australia. This means that India's remittance growth will increasingly depend on immigration policies in these countries.

Economists warn that tighter visa rules and higher salary thresholds could slow down the pipeline of new migrants, making future growth more uneven. According to Gaurav Mehndiratta, Partner and Head, Corporate and International Tax at KPMG in India, 'There does not seem to be an immediate risk of a sharp fall in remittances or FCNR inflows, but tighter immigration policies globally could moderate the pace of growth over the medium term.'

India's remittance story remains structurally resilient, but the risk profile is changing. The country's NRI deposit base has grown significantly, from around $67 billion in 2013 to nearly $167 billion currently.