How digital integration and exchange rates boost UAE-India money transfers
Digital payments, exchange rates and trade ties are reshaping remittance flows
India is the world’s largest recipient of remittances, with the UAE among its most important sources. A large Indian workforce, strong trade links and digital payment infrastructure have made money flows between the two countries faster, more frequent and increasingly diverse in purpose.
India’s inward remittances rose to a record $135.46 billion (Dh497 billion) in 2025, according to the Reserve Bank of India, with the UAE and other GCC countries accounting for a significant share. What was once largely for family support is now also linked to business activity and trade.
A corridor that has matured
“The UAE-India remittance corridor has evolved from a largely volume-driven market into a value-led, digitally integrated ecosystem. While blue-collar workers historically dominated flows, recent years have seen rising remittances from white-collar professionals, entrepreneurs and business owners relocating to the UAE,” says Adeeb Ahamed, Managing Director of LuLu Financial Holdings.
“In 2024, the UAE contributed approximately $21.6 billion, nearly 19 per cent of India’s total inflows with strong momentum continuing into 2025,” he says.
“Structural shifts such as CEPA are expanding remittances beyond family support into trade and investment-linked transfers,” Ahamed explains.
Exchange rates drive remittances
Over the past year, currency movements have accelerated transfers from the UAE. With the rupee currently around ₹24.8 to the UAE dirham, expatriates are able to take advantage of favourable rates, boosting transaction volumes.
Digital payments
Technology continues to drive the UAE-India remittance corridor. “Payment infrastructure integration; UPI with Aani and RuPay with Jaywan will materially reduce friction, cost and settlement time,” Ahamed says.
“The corridor generated an estimated $22 billion last year with average transaction values rising 12–15 per cent. Digital channels now dominate particularly among the Indian diaspora,” he says. “End-of-month spikes are flattening as instant payments enable smaller, more frequent transfers.”
Exchange houses in the UAE are accelerating growth through omnichannel strategies, competitive pricing and zero-fee digital campaigns. “Technology has reset expectations. Customers now demand instant credit, real-time tracking, seamless e-KYC onboarding and minimal branch interaction, driving continuous digital investment.” n
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Adeeb Ahamed
Managing Director, LuLu Financial Holdings
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