India’s Inward Remittances: Shift from Gulf to Advanced Economies
Why in the news
India’s remittances have more than doubled since FY2011, and the main source has moved from the Gulf to skilled diaspora in advanced economies.
Share by source
| Source | FY21 | FY24 |
|---|---|---|
| Advanced economies (US, UK, Singapore, Canada, Australia) | 34.2% | 51.2% |
| GCC (UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain) | 50.2% | 38% |
Reasons for the shift
- More skilled migration, especially IT, healthcare and finance, to advanced economies.
- Canada and Australia eased long-term entry rules.
- Fewer low-skilled workers going to the GCC as those economies diversify.
- Better-paid jobs in the US, UK and Singapore lift per-head remittances.
Outlook
- Supporting factors: demand for skilled workers, larger diaspora in rich countries and a weaker rupee.
- Advanced economies’ share should rise; GCC share may stabilise or fall as localisation and economic transition continue.
Exam angle
- GCC = Gulf Cooperation Council, six countries named above.
- Remittances: $118.7 billion in FY24.