Explainer | Why India is pushing to cut remittance costs at WTO

India joined several developing countries to advocate for a global framework to lower cross-border remittance costs ahead of the World Trade Organisation's 14th ministerial conference (MC14), marking a focus on development-linked financial issues in trade.The proposal, supported by Morocco, Pakistan and the African Group, addresses remittance fees, which remain above the United Nations’ Sustainable Development Goals target of under 3% by 2030. On several routes, costs still range between 5% and 6%, significantly reducing the amount that ultimately reaches recipient households.

Mint explains:The push reflects growing concern among developing economies over the slow progress in trade negotiations at WTO. Countries are now seeking to expand the agenda to include issues that directly affect household incomes and financial inclusion.

Remittances are a major source of external financing for many developing and least-developed countries, often exceeding foreign direct investment and aid flows.For India, the issue carries particular importance. The country is the world’s largest recipient of remittances.

Inflows account for over 10% of its current account receipts, at $135.4 billion in FY25. Even marginal reductions in transaction costs can translate into billions of dollars in additional disposable income for households.

For India, the US is the largest source of remittances, followed by the United Arab Emirates.On 17 March, the proposal's co-sponsors called for coordinated global action to reduce remittance costs. The proposal aims to identify barriers that raise remittance costs and to develop principles focused on transparency, interoperability and competition.In a partnership with international payments and financial