In 2024–25, India received a staggering $136 billion in remittances, more than Mexico and China combined, accounting for nearly 14% of the global total. This inflow covers almost half of our merchandise trade deficit and exceeds total foreign direct investment for the year. These remittances are the world’s largest and most dependable stream of diaspora capital.
Green Earth (Pixabay)
For decades, remittances have been the quiet anchor of better lives, funding education, healthcare, homebuilding, and small businesses across the country. This consumption has lifted millions out of poverty. But the time has come to look beyond household expenditure. With thoughtful financial engineering, part of this vast capital flow can be channelled into structured, high-impact investments that not only provide solid returns but also accelerate India’s green transformation.
India has done this before. In 1998, in the immediate aftermath of the Pokhran-II nuclear tests and ensuing sanctions, the government launched the Resurgent India Bonds through the State Bank of India. In just over two weeks, the diaspora subscribed $4.2 billion, a remarkable act of trust in India’s future. That success rested on three pillars: a compelling national cause, returns superior to comparable instruments abroad, and ease of participation through familiar banking channels.
The model is not unique to India. Nigeria’s Diaspora Bond in 2017 raised $300 million for infrastructure and was oversubscribed by ~130%. Kenya’s Infrastructure Bonds have channelled diaspora funds into toll roads, ports, and power plants. The Philippines’ Overseas Filipino Workers Fund invests remittances into housing finance and entrepreneurship, offering competitive yields. In each case, governments designed instruments that matched investor expectations with national development priorities, and increasingly, with sustainability objectives.
India’s green investment needs are enormous. Meeting our Paris Agreement commitments will require at least $10 trillion by 2070. The International Finance Corporation estimates renewable energy alone will need $403 billion by 2030. Public budgets and domestic private capital cannot meet this scale on their own; international and diaspora capital must become part of the solution.
Even a modest allocation of remittances could make a big difference. If 5–10% of annual inflows were invested through Diaspora Green Bonds, India could mobilise $7–14 billion each year. Over a decade, that is $70–140 billion, enough to fund significant renewable energy additions, build a nationwide EV charging network, roll out large-scale afforestation, and strengthen climate-resilient infrastructure.
The macroeconomic benefits would be just as significant. Investing more remittance capital in productive green assets would lift the national savings rate, cut the current account deficit by reducing fossil fuel imports, and create a pool of foreign-exchange-backed domestic resources. This would make India more resilient to commodity price spikes, currency swings, and external financing shocks. Aligning the emotional pull of nation-building with the urgent priority of sustainable growth could turn our most stable inflow into our most strategic investment stream.
What would make such a green bond succeed? First, financial competitiveness, yields at or above what the diaspora can secure in global fixed-income markets. Second, sovereign or public sector guarantees to ensure safety. Third, clear use of proceeds earmarked for renewable power, green mobility, waste-to-energy, and water conservation. Fourth, digital accessibility: subscription via a seamless platform integrated with UPI to reach Indians in every time zone. And finally, impact transparency, annual reporting in line with the ICMA Green Bond Principles, with tangible metrics like installed capacity, emissions avoided, and number of beneficiaries.
India’s diaspora is large, over 35 million people, and well-placed for this challenge. Many are leaders in climate technology, renewable energy, sustainable finance, and policy. They bring not just capital but also expertise, global networks, and market access. Every dollar invested could be amplified by the knowledge, influence, and innovation that our diaspora professionals carry.
We should not underestimate the emotional dimension. Diaspora Indians remain deeply invested in the nation’s future. They want India to grow faster, create high-quality jobs, and improve the quality of life. Green bonds tied to cleaner cities, better air, biodiversity preservation, and climate resilience are a natural fit for this aspiration. The marketing needs to capture both the heart and the head: this is a safe, attractive investment that also shapes the India their children will inherit.
The precedent is powerful. In 1998, diaspora trust and national purpose turned into billions of dollars in days. In 2025, the stakes are different, not sanctions but sustainability, yet the need is equally urgent. If we act now, India can set the benchmark for linking diaspora capital to green growth, a model that other nations will study and emulate. We have the scale, the credibility, and the technology to make it happen.
Remittances are often described as private, family-to-family transfers. But they are also a reflection of trust, trust that the country of origin is worth investing in, emotionally and financially. In an era when sustainable growth is the defining global challenge, that trust can be harnessed for a national mission. Let us mobilise it, as we did in 1998, and send a powerful message to the world: India will lead in green growth.
This article is authored by Vivek Anand Oberoi, co-founder and managing director, BNW Developments, UAE and Jayant Sinha, president, Eversource Capital and visiting professor in practice, London School of Economics.
E-Paper
