High-value, white-collar inflows now dominate our remittances

A greater share of transfers from abroad has been coming from the US and our better industrialized states are top recipients

- RAJRISHI SINGHAL

Remittances sent home by Indian workers overseas have long been a savior for the Indian economy, which has become dependent on foreign savings to finance the economy. Recent data releases from the Reserve Bank of India (RBI) show that the nature of remittances has been changing over time, revealing not only emerging trends but also potentially reviving some old debates.

Remittances to India have more than doubled from $55.6 billion in 2010-11 to $118.7 billion in 2023-24 (the graph alongside has calendar years). In fact, India leads the global league tables in remittances, being the top recipient. Remittances crossed the $100-billion mark in 2021. And, looking at the run-rate so far, remittances are likely to touch a new record for 2024-25.

RBI's sixth round of surveys on inward remittances for 2023-24, covered in its bulletin's March 2025 edition, states that despite the contraction during the pandemic, the resurgence in subsequent years points to an improvement in employment opportunities in advanced economies. To wit, remittances from the US to India had the highest share among inward remittances from all countries, at 27.7%. The UAE came in second with a 19.2% share. This same pecking order was in evidence during 2022-23 and is a complete reversal from the traditional ranking. For example, in 2016-17, the UAE had a 26.9% share while the US had 22.9%, and the ongoing reshuffle indicates shifting dynamics.