India top recipient of remittances globally driven by uptick in job creation: Economic Survey

Finance Minister Nirmala Sitharaman tabling the Economic Survey 2024-25 in Lok Sabha.

India was the top recipient of remittances in the world, driven by an uptick in job creation in Organization for Economic Co-operation and Development (OECD) economies, according to the Economic Survey tabled in Parliament by Finance Minister Nirmala Sitharaman.

"As per the World Bank, India was the top recipient of remittances in the world, driven by an uptick in job creation in OECD economies. These two factors combined to ensure that India's current account deficit (CAD) remains relatively contained at 1.2 per cent of GDP in Q2 FY25," it stated.

Government initiatives are playing a key role in enhancing the formalisation of the job market. "Formalisation of the job market, as reflected in payroll data from the Employees’ Provident Fund Organisation (EPFO), indicates that government initiatives are helping foster greater economic formalisation," the Survey states.

India's formal sector has seen significant growth, with net Employees' Provident Fund Organisation (EPFO) subscriptions more than doubling from 61 lakh in FY19 to 131 lakh in FY24. In April -November 2024, net additions reached 95.6 lakh, driven largely by youth. Workers aged 18-25 years contributed to 47 per cent of the net payroll additions. This indicates a growing trend towards formal employment, which enhances workers' access to social security and stability.

According to the Economic Survey, India's economy will grow at 6.3-6.8 percent in the financial year 2025-26. The Economic Survey is an annual document presented by the government ahead of the Union Budget to review the state of the economy.