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India remains the world’s top recipient of remittances, with total inward remittances doubling from USD 55.6 billion in 2010–11 to USD 118.7 billion in 2023–24, as per the Reserve Bank of India’s Sixth Round of the Remittances Survey.

Shift in Sources of Remittances

• A significant trend in 2023–24 is the growing dominance of Advanced Economies (AEs) over traditional Gulf sources.
• The United States emerged as the largest contributor with a 27.7% share, followed by the United Arab Emirates (UAE) at 19.2%.
• AEs including the UK, Singapore, Canada, and Australia now account for over 50% of India’s total remittance inflows.
  • The UK’s share increased notably from 3.4% (2016–17) to 10.8% (2023–24).
  • Australia contributed 2.3%, reflecting rising skilled migration.
• The Gulf Cooperation Council (GCC) countries (UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain) collectively contributed 38%, a decline from 47% in 2016–17.

Reasons for the Shift

• Robust Job Markets in AEs: High-paying jobs for skilled Indian migrants in the US, UK, Canada, and Australia.
  • UK-India Migration and Mobility Partnership (MMP) tripled Indian migration to the UK from 76,000 in 2020 to 250,000 in 2023.
  • Favorable immigration policies in Canada (Express Entry) and Australia boosted skilled migration.
• Declining Opportunities in GCC:
  • Post-pandemic return of Indian migrants and reduced demand for low-skilled labor due to automation and economic diversification.
  • Nationalization policies (e.g., Nitaqat in Saudi Arabia, Emiratization in UAE) favor local employment.
• Changing Migration Patterns:
  • Southern states (Kerala, Tamil Nadu, Andhra Pradesh, Telangana) now prefer AEs due to higher education levels.
  • Northern states (Uttar Pradesh, Bihar, Rajasthan) still send migrants to GCC, but limited by lower skill levels.
• Rise in Education-Driven Migration:
  • Many Indian students pursue higher education abroad and stay back for employment.
  • Indian students abroad: Canada (32%), US (25.3%), UK (13.9%), Australia (9.2%).

State-Wise Remittance Distribution (2023–24)

• Maharashtra: 20.5%
• Kerala: 19.7%
• Tamil Nadu: 10.4%
• Telangana: 8.1%
• Karnataka: 7.7%
• Notable increases observed in Punjab and Haryana.

Mode of Transfers

• The Rupee Drawing Arrangement (RDA) remains the dominant channel.
• Other channels include direct Vostro transfers and fintech platforms.
• Digital transactions account for 73.5% of remittance flows.