The Reserve Bank of India (RBI) released the sixth round of India’s remittances survey on March 19, 2025, revealing significant shifts in the sources of remittances.
Changing Trends in Inward Remittances
- US takes the top spot: 27.7% of India’s remittances now come from the United States, surpassing the UAE.
- UAE drops to second place: Its share declined to 19.2%, from 26.9% in 2016-17.
- Declining share of Gulf nations:
- GCC nations (UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain) now contribute 37.9%, down from 46.7% in 2016-17.
- Rise of advanced economies:
- The US, UK, Singapore, Canada, and Australia together now account for over 50% of India’s remittances.
Why the Shift?
Employment Differences:
- UAE: Large Indian workforce in blue-collar jobs (construction, healthcare, hospitality, tourism).
- US: Higher earnings from white-collar professionals in IT, finance, and healthcare.
Top Remittance-Receiving States
- Maharashtra takes the top spot (20.5%), surpassing Kerala.
- Kerala drops to second place (previously first in 2016-17 with 19%).
- Tamil Nadu’s share grows from 8% (2016-17) to 10.4% (2023-24).
(Source: Business Line)
