Skilling gulf narrows: With 28% share, US pips UAE as top remittance source

MUMBAI: While Gulf nations still host about half of Indian migrants, more skilled workers are moving to advanced economies with the US contributing 27.7% of total remittances. According to a study published by RBI,India's remittance patterns are shifting as advanced economies surpass the Gulf as the dominant source. In 2023-24, over half of total remittances came from advanced economies, reflecting a rise in skilled migration.

While the US is the largest source, rising to 27.7% in FY24 (from 23.4% in 2020-21), reflecting a steady recovery in the US job market, the share of UK has also increased to 10.8% in 2023-24 from 6.8% in 2020-21, which may be attributed to the 'Migration and Mobility Partnership' (2021) between India and the UK," the report said. Remittances also grew from Singapore (6.6%), Canada (3.8%), and Australia (2.3%). GCC countries (UAE, Saudi Arabia, Kuwait, Qatar, Oman, & Bahrain) contributed 38%.

State-wise, Maharashtra received the largest share of remittances at 20.5%, followed by Kerala at 19.7% and Tamil Nadu at 10.4%. Telangana and Karnataka also received significant inflows. A growing number of Indian students are opting for non-GCC countries for higher education.

India's migrant stock has tripled since 1990 to 18.5 million, with its share of global migrants rising from 4.3% to 6%. With the country's working-age population set to rise until 2048, it is expected to remain the world's leading labor supplier. Continuous upskilling and reskilling will be critical in maximising this potential, the report published in RBI's latest bulletin said.

Remittances remain a major source of foreign exchange, consistently exceeding gross inward FDI flows and serving as a key buffer against external shocks. They have accounted for around 3% of GDP since 2000, far exceeding China's 0.3%, though trailing the Philippines. India's remittances have more than doubled from $55.6 billion in 2010-11 to $118.7 billion in 2023-24, growing at an average annual rate of 14.3% post-pandemic. They also help fund the country's merchandise trade deficit, reinforcing their economic significance.


Stay informed with the latest business news, updates on bank holidays and public holidays.

Boost your business with AI. Join this course by GrowFast and unlock the power of artificial intelligence. Sign up now!