The Reserve Bank of India (RBI) has released the findings from the sixth round of India’s Remittances Survey for 2023-24, and it points to a significant change in migration trends. More skilled professionals are heading abroad, resulting in a rise in remittances from advanced economies that now outstrip those coming from Gulf countries.
Introduction to India’s Changing Remittance Trends
According to the latest RBI survey, there’s been a notable change in the remittance landscape of India. Historically, a big share of remittances flowed in from the Gulf Cooperation Council (GCC) countries, where Indian workers, mostly in blue-collar jobs, were the main contributors. But now, the survey indicates that remittances from advanced economies like the United States, the United Kingdom, Canada, and Australia have actually surpassed those from the Gulf.
Key Findings of the RBI Remittances Survey (2023-24)
1. Leading Source Countries for Remittances
The United States has taken the lead as the biggest source of remittances, making up 27.7% of the total inflows to India for the 2023-24 period. The United Arab Emirates, which used to be the top contributor, has now slipped to second place with a 19.2% share. Other significant players in the remittance game include the UK, Singapore, Canada, and Australia, which together represent over half of the total remittances. Meanwhile, the Gulf Cooperation Council countries—UAE, Saudi Arabia, Kuwait, Qatar, Oman, and Bahrain—now account for 37.9% of remittances, a decrease from 46.7% back in 2016-17.
2. Shift in Migration Patterns: Blue-Collar vs. White-Collar Jobs
- The UAE continues to be the top destination for Indian migrant workers, especially in fields like construction, healthcare, hospitality, and tourism.
- On the other hand, the US draws in a lot of highly skilled Indian professionals, with a whopping 78% working in lucrative jobs across management, business, science, and the arts.
- This is why we see remittances from the US surpassing those from the UAE, even though the Indian migrant community is smaller there.
3. State-Wise Remittance Distribution
- Maharashtra has overtaken Kerala as the top recipient of remittances, with 20.5% of the total share in 2023-24.
- Kerala, which held the top position in 2016-17 (19% share), is now in second place.
- Tamil Nadu has also increased its share from 8% (2016-17) to 10.4% (2023-24).
4. India’s Global Share in Remittances
- According to World Bank data, India’s share in global remittances has risen from 11% in 2001 to 14% in 2024.
- Remittance inflows are projected to increase to around $160 billion by 2029.
- Other major recipients of remittances include Mexico, China, the Philippines, France, Pakistan, and Bangladesh.
5. Role of Digitalization in Remittance Transfers
- The cost of sending remittances to India has declined, thanks to advancements in digital payment methods.
- 73.5% of total remittances received in India in 2023-24 were through digital channels, including fintech platforms and money transfer operators.
