The share of inward remittances to India from advanced economies, including the US and the UK, surpassed that of Gulf countries in 2023-24. This shift reflects a rising trend of skilled migration, according to the Reserve Bank of India (RBI) March Bulletin released on Wednesday.
India’s total remittances more than doubled from $55.6 billion in 2010-11 to $118.7 billion in 2023-24. These funds financed nearly half of the country’s merchandise trade deficit. They also acted as a cushion against external shocks during this period.
The RBI article, Changing Dynamics of India’s Remittances – Insights from the Sixth Round of India’s Remittances Survey, explored various aspects of inward remittances to India. It examined the source countries, destination states, remittance size, and transmission modes.
India’s international migrant stock rose from 6.6 million in 1990 to 18.5 million in 2024. India’s share in global migrants increased from 4.3% to over 6% in the same period.
Gulf Cooperation Council (GCC) nations still host around half of Indian migrants. However, advanced economies have emerged as top remittance sources, marking a shift in India’s diaspora profile.
The US, UK, Singapore, Canada, and Australia together accounted for over half of the remittances in 2023-24. The US led with a 27.7% share, up from 23.4% in 2020-21. The UK followed with 10.8%, up from 6.8% in 2020-21.
The UAE remained the second largest source. Its share rose from 18% in 2020-21 to 19.2% in 2023-24. Most Indian workers in the UAE hold blue-collar jobs, mainly in construction, healthcare, hospitality, and tourism.
In contrast, Indian migrants in the US typically hold white-collar jobs. Maharashtra received the largest share of remittances at 20.5% in 2023-24, though down from 35.2% in 2020-21. Kerala followed with 19.7%, up from 10%. Tamil Nadu (10.4%), Telangana (8.1%), and Karnataka (7.7%) came next.
Maharashtra, Telangana, and Punjab sent the highest number of students abroad. Many stayed on for jobs, increasing their states’ remittance share.
High-value remittances above ₹5 lakh accounted for 29% of total transactions in 2023-24.
The article was authored by members of RBI’s Department of Economic and Policy Research. The RBI clarified that the views expressed are those of the authors and not of the central bank.
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