India’s Top Sources of Remittances in FY24
India has solidified its position as a leading nation in receiving remittances, with the total inflows significantly increasing from $55.6 billion in 2010-11 to an impressive $118.7 billion in the fiscal year 2023-24. This information comes from the Reserve Bank of India’s recent Remittances Survey.
In the fiscal year 2024, it was noted that over half of the remittances to India originated from advanced economies such as the United States, the United Kingdom, Singapore, Canada, and Australia. This marks a noticeable shift in the global remittance landscape.
On the other hand, the Gulf Cooperation Council (GCC) countries, which have historically been major sources of remittances to India, have experienced a significant decline over the years.
In FY24, the United States topped the list as the largest source of remittances, contributing 27.7% of the total, up from 23.4% in FY21. The United Arab Emirates followed as the second-largest source, but its share dropped to 19.2% in FY24 from 27% in FY17. Despite this decline in percentage, the UAE’s contribution has seen a slight increase of 1.2% since FY21.
The difference between the US and UAE indicates a broader trend: while the UAE has a larger population of Indian migrant workers, many of whom are in blue-collar jobs, the US has a workforce that is primarily composed of white-collar professionals. As a result, even with fewer Indian migrants in the US, the country sends a significantly larger amount in remittances.
Singapore has also made notable progress, achieving its highest share of Indian remittances since FY17, accounting for 6.6% in FY24 compared to 5.5% in FY17.
For the fiscal year 2023-24, the share of remittances is based on two main components: transfers meant for family support and savings, as well as local withdrawals from non-resident bank accounts.
As India continues to receive robust remittances, these changes mark an important evolution in the global remittance patterns, showing new opportunities and challenges for the country.
