RBI Paper
Share of advanced econs in remittances to India tops Gulf nations, says RBI paper
This story was originally published at 19:30 IST on 19 March 2025
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NEW DELHI – The share of advanced economies in India's inward remittances has surpassed the share of Gulf economies, reflecting a shift in migration pattern towards skilled Indian diaspora, the Reserve Bank of India staff said in a paper. The results of the sixth round of RBI's India's Remittances Survey showed that the India's remittances from the US, the UK, Singapore, Canada, and Australia are now higher than remittances from the Gulf Cooperation Council countries.
India's remittances have more than doubled to $118.7 billion in 2023-24 (Apr-Mar) from $55.6 billion in FY11. Remittances from the US, the UK, Singapore, Canada, and Australia together accounted for more than half of the remittances in FY24. The Gulf Cooperation Council countries--the UAE, Saudi Arabia, Kuwait, Qatar, Oman and Bahrain--together contributed 38% to India's total remittances last year.
The US had the largest share in India's total remittances at 27.7% in FY24, rising from 23.4% in 2020-21, reflecting a steady recovery in the US jobs market, the staff paper said. The share of inward remittances from the UK also increased to 10.8% in 2023-24 from 6.8% in 2020-21, which, the RBI staff said, may be attributed to the ‘Migration and Mobility Partnership' between India and the UK. The article was written by RBI staff and the views expressed in the article do not reflect the central bank's views.
The share of remittances from Singapore, Canada, and Australia rose to 6.6%, 3.8%, and 2.3%, respectively, in FY24 from FY21. United Arab Emirates remained the second largest source of India's remittances, with its share increasing to 19.2% in FY24 from 18% in FY21.
Maharashtra, Kerala, and Tamil Nadu received the largest chunk of remittances among Indian states in FY24. Maharasthra received 20.5% of India's total remittances last year, although its share declined from 35.2% in FY21. Kerala, the second biggest recepient of remittances, saw its share rise to 19.7% in FY24 from 10.2% in FY21.
The cost of sending remittances to India is lower than the global average cost, driven by digitalisation but remains higher than the Sustainable Development Goals target. The Sustainable Development Goals target to lower the global average cost of sending $200 in remittances to 3% or less by 2030. "Furthermore, fintech companies offer affordable cross-border remittance services, fostering competition among different remittance service providers," the staff paper said. End
US$1 = INR 86.44
Reported by Shubham Rana
Edited by Akul Nishant Akhoury
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