Surge in Indian Remittances from Advanced Economies

The share of inward remittances to India from advanced economies, such as the US and UK, has overtaken those from Gulf economies as of 2023-24, according to an RBI Bulletin. This reflects a shift towards a more skilled Indian diaspora contributing significantly to India's economic resilience.

The latest RBI Bulletin highlights a significant shift in India's remittance landscape, with advanced economies surpassing Gulf nations in 2023-24 as the primary source of the country's remittances. This development underscores the growing influence of a skilled Indian diaspora in advanced economies like the US and the UK.

India's remittances have seen remarkable growth, doubling from USD 55.6 billion in 2010-11 to USD 118.7 billion in 2023-24. These funds not only finance around half of India's merchandise trade deficit but have also been a crucial buffer against external economic shocks.

The RBI's sixth survey on remittances reveals the increasing prominence of countries such as the US, which now accounts for 27.7% of India's remittances, and the UK, contributing 10.8%. The findings come as India's working-age population continues to rise, positioning the country as a leading global labor supplier.

(With inputs from agencies.)