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US, UK, Singapore lead as India's top remittance hubs; overtake GCC nations

2 min read

Changing Dynamics of India's Remittances

The landscape of India's remittances is undergoing a notable transformation, with a shift towards contributions from advanced economies (AEs) like the US, UK, Singapore, Canada, and Australia, accounting for more than half of India's remittances in 2023-24 (FY24).

Key Contributors

  • Gulf Cooperation Council (GCC) Countries: UAE, Saudi Arabia, Kuwait, Qatar, Oman, and Bahrain contributed 38% of the total remittances. However, their dominance is gradually declining. 
  • Advanced Economies: The growth of remittances from AEs has outpaced that of the GCC, indicating a shift towards a skilled Indian diaspora. 

Statistics and Trends

  • Total Remittances: India's inward remittances more than doubled from $55.6 billion in 2010-11 to $118.7 billion in 2023-24. 
  • US Contributions: The US emerged as the largest contributor, with its share rising to 27.7% in FY24 from 23.4% in FY21. This reflects a recovery in the US job market, especially with a 6.3% increase in foreign-born workers in 2022. 
  • UAE Contributions: The UAE remained the second-largest source, with its share increasing to 19.2% in FY24 from 18% in FY21. Indian migrants here are primarily engaged in blue-collar jobs. 
  • UK Contributions: Remittances from the UK rose to 10.8% in FY24 from 6.8% in FY21, influenced by the Migration and Mobility Partnership between India and the UK. 
  • Other Countries: Remittances from Singapore, Canada, and Australia also showed a notable increase in FY24. 

Indian Students Abroad

  • Canada as a Preferred Destination: As of January 2024, 32% of the 1.34 million Indian students abroad were in Canada, followed by the US (25.3%), the UK (13.9%), and Australia (9.2%). 
  • Tags :
  • Diaspora
  • Remittances
  • Indian Students Abroad
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