India’s Inward Remittances in FY24

Context:

India’s inward remittances more than doubled from $55.6 billion in FY11 to $118.7 billion in FY24. Advanced Economies (AEs) US, UK, Singapore, Canada, and Australia accounted for 51.2% of total remittances in FY24, up from 34.2% in FY21. The Gulf Cooperation Council (GCC) countries — UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain contributed 38% of India’s total inward remittances in FY24.

Shift from GCC to Advanced Economies

• According to the sixth round of India’s Remittances Survey (RBI, March 2025), there has been a clear decline in GCC dominance as the source of India’s remittances.
• The surge from AEs is attributed to changing migration patterns, with more skilled Indian professionals moving to developed economies.
• Growth of remittances from AEs outpaced that of the GCC, reflecting stronger employment prospects for skilled workers abroad.

Country-Wise Remittance Breakdown (FY24 vs FY21)

US: The Largest Remittance Source

• The US remained the top contributor with 27.7% share in FY24, up from 23.4% in FY21.
• 78% of Indian migrants in the US are employed in high-earning sectors:
  • Management
  • Business
  • Science
  • Arts
• Growth driven by a 6.3% increase in foreign-born workers in the US labor force in 2022, up from 0.7% in 2019.

UAE: The Second-Largest Source

• The UAE contributed 19.2% in FY24 (up from 18% in FY21).
• Indian migrants in the UAE are primarily employed in blue-collar jobs, especially in:
  • Construction
  • Healthcare
  • Hospitality and tourism

Other Key Contributors

• UK’s share rose significantly from 6.8% (FY21) to 10.8% (FY24), indicating robust job creation and migration.
• Singapore accounted for 6.6% of total remittances, supported by growth in financial and tech sector employment for Indian expats.
• Canada (3.8%) and Australia (2.3%) also showed rising contributions, highlighting the diversification of skilled Indian migration destinations.

Insights from RBI’s Survey

• Skilled migration to developed economies is becoming a dominant driver of India’s remittance growth.
• The higher earnings potential in AEs means larger average remittance amounts per migrant, despite fewer individuals compared to the GCC.
• The GCC remains significant, but its share is gradually declining as remittance growth from white-collar migrant destinations accelerates.

Source: BS