Changing Trends in India’s Inward Remittances

India’s remittance patterns shifted significantly in FY24, with advanced economies like the US, UK, Canada, and Australia contributing over half of the total remittances, driven by a skilled Indian diaspora. While GCC nations accounted for 38%, their dominance has declined. The US led with 27.7%, reflecting high-skilled migrants in white-collar jobs. The UK, Singapore, Canada, and Australia also saw growth, supported by rising migration and education trends. This highlights India’s global talent footprint and diversification of remittance sources.

India’s remittance landscape witnessed a significant transformation in 2023-24 (FY24), with advanced economies (AEs) such as the US, UK, Singapore, Canada, and Australia collectively contributing more than half of India’s total remittances. This marks a notable shift in migration trends, driven by a growing base of highly skilled Indian professionals abroad.

The Gulf Cooperation Council (GCC) countries—including the United Arab Emirates (UAE), Saudi Arabia, Kuwait, Qatar, Oman, and Bahrain—accounted for 38% of the remittances received by India during FY24. Despite this strong presence, the dominance of GCC nations in India’s remittance inflows has seen a gradual decline over the years. According to the Reserve Bank of India’s (RBI) March 2025 bulletin, which discusses findings from the sixth round of India’s Remittances Survey, advanced economies have emerged as a dominant source of remittance growth, outpacing GCC nations.

India’s inward remittances have seen impressive growth, more than doubling from $55.6 billion in 2010-11 to $118.7 billion in FY24. The United States remains the largest contributor, with its share rising from 23.4% in 2020-21 (FY21) to 27.7% in FY24, reflecting a robust recovery in the US job market. The US labor force saw a significant 6.3% increase in foreign-born workers in 2022, compared to just 0.7% in 2019, prior to the pandemic. Meanwhile, the share of native-born workers has remained relatively stable at 1%.

Indian migrants in the US are primarily employed in high-earning sectors such as management, business, science, and the arts, with 78% of them working in these fields. This contrasts with the UAE, the second-largest source of India’s remittances, where Indian workers are predominantly engaged in blue-collar jobs, particularly in construction, healthcare, hospitality, and tourism. The UAE’s share of remittances increased from 18% in FY21 to 19.2% in FY24. Despite having a larger Indian migrant population, the nature of their employment results in lower remittances compared to the US.

The RBI study also highlighted a surge in remittances from the UK, which rose from 6.8% in FY21 to 10.8% in FY24. This increase can be attributed to the Migration and Mobility Partnership between India and the UK. The number of Indians migrating to the UK annually has more than tripled, growing from 76,000 in 2020 to approximately 250,000 by the end of 2023. Roughly 50% of these migrants moved for employment opportunities.

Other advanced economies have also shown notable growth in their contribution to India’s remittances. Singapore’s share rose to 6.6%, Canada’s to 3.8%, and Australia’s to 2.3% in FY24, reflecting a broader diversification of India’s remittance sources. Canada, in particular, remains a favored destination for Indian students pursuing higher education. Of the 1.34 million Indian students studying abroad as of January 2024, 32% were in Canada, followed by 25.3% in the US, 13.9% in the UK, and 9.2% in Australia.

India’s evolving remittance patterns highlight the growing impact of its skilled diaspora in advanced economies. This shift not only underscores the expanding global footprint of Indian talent but also reflects the diverse opportunities available to Indian migrants in today’s interconnected world.