US is now India’s largest remittance source

India's remittance landscape is changing. According to a recent survey by the Reserve Bank of India (RBI), the United States has become the largest source of remittances to India, surpassing Gulf nations. This shift has taken place over the last four years. Remittances are money or goods sent by people working in other countries to support their families back home. India has seen a significant increase in these funds, growing from $55.6 billion in 2010-11 to $118.7 billion in 2023-24. The RBI's latest report highlights that the US contributed 27.7 percent of India's total remittances in 2023, up from 23.4 percent in 2020. The UK is also increasing its share of remittances. It rose from 3 percent in 2017 to 10.8 percent in 2023-24. Together, the US and the UK accounted for nearly 40 percent of all remittances to India in the last fiscal year, an increase from 26 percent in 2017-18. In contrast, contributions from traditional sources like the United Arab Emirates (UAE) and Saudi Arabia have not kept pace. The UAE, once India's top source, provided only 19.2 percent of remittances in 2023-24, down from 26.9 percent in 2016-17. Remittances from Saudi Arabia fell to 6.7 percent from 11.6 percent in the same period. The trend reflects changing migration patterns. More highly-skilled Indian workers are now moving to advanced economies rather than Gulf countries. In these developed nations, Indians are more likely to work in higher-paying white-collar jobs in sectors such as finance and technology. The RBI noted that increased education opportunities in countries like Canada, the UK, and Australia might also drive more remittances from these regions. The top Indian states receiving these funds are Maharashtra, Kerala, and Tamil Nadu, with Maharashtra receiving the largest share. Looking ahead, the RBI projects remittances to India could reach approximately $160 billion by 2029.