Rise in remittances from Indians in advanced economies

This comes amid decline in amount sent home by those working in Gulf countries

- Debarshi Dasgupta

NEW DELHI - While working in India, software engineer Abhinav Gupta was on the lookout for better opportunities when one of his clients told him about an exciting role in Singapore to build programmes for contact centres.

The offer came with an attractive salary and brought with it the opportunity to move to a city known for its high liveability index. "I did a little bit of research and I was like, okay, it (Singapore) is basically the New York City of South-east Asia, so why not?" said Mr Gupta.

Mr Gupta (name changed on request) relocated to Singapore in March 2023 and today earns an almost six-figure annual salary, allowing him to invest $1,000 to $2,000 each month in India's stock market and mutual funds.

"I'm doing this because I do believe in the Indian market. I think it's a good return," said Mr Gupta, who did not want to be identified publicly with his investments.

Skilled workers in advanced economies such as Mr Gupta are a growing breed among the overseas Indian population, estimated at 18.5 million - a group that has traditionally been dominated by migrants in Gulf countries, many of whom are low- or semi-skilled workers.

This shift has led to an increase in the share of remittances from advanced economies such as the US and Britain, which has boosted India's total remittance inflow, despite a decline in the amount of money sent home by Indians based in the Gulf Cooperation Council (GCC) countries in recent years.

India's remittances could, in fact, reach as high as US$300 billion (S$391 billion) in the next 10 years if the country manages to send "the right people with the right skills to the right place", Dr S. Irudaya Rajan, chairman of the International Institute for Migration and Development, told The Straits Times.