ECONOMY
BoP in stable zone, aided by remittances, services exports and FDI flows in FY25
- IBJ Bureau
- May 02, 2026
India’s balance of payments (BoP) retains structural strength, with resilient remittances, services exports and FDI inflows, helping offset weaker portfolio flows and cushion the economy against external shocks, Reserve Bank of India Deputy Governor Poonam Gupta has said.
Despite global uncertainties related to the West Asia conflict, Ms Gupta has expressed optimism about India’s growth and noted the effective transmission of monetary policy despite bond yield elevations.
“Our remittances are solid, $135 billion-plus, and they only move in one direction, which is a healthy growth every single year. Even during COVID, they had declined by only a tiny bit,” Ms Gupta has said, speaking at ICPP Growth Conference.
India has retained its position as the world’s largest remittance recipient in FY25, with inflows reaching a record $135.4 billion (around 3.5 per cent of the GDP).
During April-December FY26, remittances stood at $110.9 billion, reflecting a robust y-o-y growth of 10.1 per cent and placing full-year inflows on track to surpass the previous year’s peak.
The on-going West Asia conflict presents a material, albeit uncertain, risk to this income stream, given the continued importance of the Gulf Cooperation Council (GCC) economies as a source region.
“I would also like to believe now that the conflict is more narrowed down to a stalemate in the Strait of Hormuz, and the rest of the region is not impacted…. migrants would return sooner. As the reconstruction effort starts, they will be employed more than before,” she has said.
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