Key Details
The International Fund for Agricultural Development’s Sending Money Home 2026 report examines remittance flows, transfer costs and digital access in low- and middle-income countries.
Global flows: US$728.6 billion in 2025, up 94% from 2016; an estimated 32% reached rural areas.
India: US$150.7 billion, making it the largest recipient and accounting for 39% of Asia-Pacific inflows.
Transfer costs: Fully digital services averaged 4.59%, against 7.30% for non-digital services; India’s non-bank average was 3.3%.
Digital gap: More than half of remittance value was initiated digitally, but only 35% of measured services were digital at both ends.
The 2025 totals use the latest country data available from 2023–2025; rural estimates are indicative rather than officially recorded.
India Accounts for Two-Fifths of Asia-Pacific Inflows
India remained the world’s largest remittance recipient, with inflows rising from US$63 billion in 2016 to US$150.7 billion in 2025—about 39% of the US$384.9 billion received across Asia and the Pacific.
The increase is measured in current US dollars and therefore reflects exchange-rate and price changes as well as migrant earnings and transfers.
The GCC remains an important destination for migrants from Southern and Southeast Asia, alongside Europe and North America. The report does not provide India-specific corridor shares, so these regions’ contributions to India’s total cannot be determined from it.
Most Remittances Meet Immediate Family Needs
Around three-quarters of remittances are used for food, housing, utilities and other immediate needs. The remaining quarter—more than US$180 billion annually—supports healthcare, education, housing improvements, savings and income-generating activities.
Remittances are private transfers between families, not development finance. Their scale does not transfer responsibility for social protection, climate finance or essential services from governments to migrant households.
The policy opportunity is to reduce transfer costs and give recipients voluntary access to suitable savings, credit, insurance and investment products.
Digital Transfers Are Not Yet Fully Digital
More than half of remittance value was initiated digitally by 2025, with fully digital services costing an average 4.59%, compared with 7.30% for services involving cash at either end.
Yet only 35% of measured services were digital end to end. Transfers initiated through an app may still require recipients to collect cash or pay withdrawal charges.
India’s average 3.3% non-bank cost for sending US$200 is close to the SDG target of below 3%, but does not mean every Indian corridor or provider meets it.
The report highlights Aadhaar and UPI as strong domestic digital foundations. Translating these into cheaper cross-border transfers additionally requires interoperability, competition and transparent foreign-exchange pricing.
Rural Remittances Have Wider Local Effects
IFAD estimates that US$233 billion, or 32% of global remittances, reached rural areas in 2025. Recipient households are estimated to invest around US$22 billion annually in rural agrifood systems, exceeding global official development assistance to agriculture.
These are modelled estimates rather than directly observed flows, since official remittance statistics do not distinguish rural from urban recipients.
The figures nevertheless indicate how remittance spending, savings and insurance can support local businesses, agriculture, employment and household resilience.
India Shows Another Route for Mobilising Diaspora Savings
Diaspora communities worldwide are estimated to hold around US$500 billion in annual savings. The report highlights India’s non-resident deposit schemes as an example of mobilising such savings through established financial institutions.
The example suggests that trusted regulation and familiar banking channels may matter as much as creating specialised diaspora investment products.
The distinction from remittances is important: non-resident deposits mobilise savings and investment, while remittances primarily support households.
Remittances and Diaspora Investment Are Not the Same
Remittances are personal transfers to families or households, generally used for consumption, education, healthcare, housing or savings.
Diaspora investment places money in deposits, bonds, businesses, property or other assets with an expectation of preserving capital or earning a return.
A migrant may do both, but diaspora investment should not be treated as a substitute for family remittances.
What the Report Recommends
For governments and development institutions: Modernise regulation without weakening financial integrity; connect digital identity and payment infrastructure across providers and borders; preserve rural cash-out and agent networks; improve corridor-, gender- and location-specific data; and keep remittance services functioning during crises.
For financial and payment providers: Disclose fees, exchange-rate margins and delivery times before payment; combine digital channels with accessible cash services; strengthen fraud protection and complaints mechanisms; and offer voluntary savings, credit and insurance suited to remittance-receiving families.
Both sets of recommendations emphasise that technology alone will not reduce costs. Competition, interoperability, consumer protection and last-mile access determine whether efficiency gains reach families.
Policy Relevance
India’s 3.3% average non-bank transfer cost suggests that the policy priority is becoming more specific than reducing the national average. Corridor-level data are needed to identify routes where fees, exchange-rate margins or limited competition still leave migrants paying substantially more.
The report also points to two distinct policy opportunities. Remittances primarily support family consumption and resilience; non-resident deposits mobilise diaspora savings for investment. India has institutions serving both purposes, but their success should be judged differently:
Family remittances | Diaspora savings |
|---|---|
Lower the full cost and improve reliable last-mile receipt | Offer secure, competitive and transparent investment products |
Measure how much money reaches families and how quickly | Measure deposit stability, investor protection and productive use |
Preserve the recipient’s freedom to use private household funds | Attract capital through voluntary investment decisions |
India’s policy challenge is therefore not simply to extract more “development value” from remittances. It is to make family transfers cheaper and more reliable while building separate, trusted channels for diaspora investment.
Follow the Full Report Here: Sending Money Home 2026