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%).