For years, India’s remittances—money sent home by Indians working abroad—were dominated by the Gulf nations. The UAE, Saudi Arabia, Qatar, and others were the top contributors, thanks to a large workforce employed in construction, hospitality, and other industries.
But times are changing. According to the latest data from the Reserve Bank of India (RBI), advanced economies like the United States, UK, Canada, Australia, and Singapore now account for over half of India’s total remittances. This marks a major shift in the migration and earnings landscape.
What’s Behind This Shift?
- Rise of High-Skilled Migrants
- More Indians are moving to the US, UK, and Canada for higher education and skilled jobs in sectors like IT, healthcare, business, and finance. These jobs come with better pay, leading to larger remittances back home.
- The US Leads the Way
- The United States alone contributed 27.7% of all remittances to India in 2023-24. The UK’s share also increased, while the UAE remained the largest contributor among Gulf nations.
- Declining Share from the Gulf
- The Gulf nations now contribute only 38% of India’s total remittances, a drop from earlier years. While many Indians still work there, most are in blue-collar jobs, which generally pay less than high-skilled professions in advanced economies.
Where is the Money Going?
The states receiving the most remittances have also changed:
- Maharashtra still receives the largest share (20.5%) but has seen a decline.
- Kerala’s share has nearly doubled to 19.7%, reflecting the strong migration of its residents to both Gulf nations and Western countries.
- Tamil Nadu, Telangana, and Karnataka also receive significant inflows, driven by IT professionals and students settling abroad.
What Does This Mean for India?
This shift in remittances signals a positive economic transition. More Indians are securing high-paying jobs abroad, strengthening family incomes back home. It also reflects India’s growing global footprint in industries like technology, healthcare, and finance.
As this trend continues, remittances from advanced economies are expected to grow even further, reshaping India’s migration and economic story.