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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)
| Country/Region | Share in FY21 (%) | Share in FY24 (%) |
|---|---|---|
| United States | 23.4 | 27.7 |
| United Arab Emirates | 18.0 | 19.2 |
| United Kingdom | 6.8 | 10.8 |
| Singapore | Not available | 6.6 |
| Canada | Not available | 3.8 |
| Australia | Not included in FY21 data | 2.3 |
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
