Context
RBI’s Remittances Survey (2023-24) reveals a major geographic shift in the source of inward remittances to India.
India received $118.7 billion in remittances in FY24 (more than double since 2010-11).
🌍 Key Findings
📈 Rising Contribution from Advanced Economies
AEs now contribute over 50% of India’s total remittances.
U.S.: Top contributor since FY21
▸ 23.4% (FY21) → 27.7% (FY24)
UK + U.S.: Share rose from 26% (FY17) → 40% (FY24)
Singapore: 6.6% in FY24 (up from 5.5% in FY17)
Other AEs: Canada, Australia show steady growth
📉 Declining Share from Gulf Countries (GCC)
UAE: Still 2nd highest at 19.2%, but down from 26.9% (2016-17)
🔍 Why Autonomy Matters
Way Forward:
Legislative reforms to insulate regulators from political interference
Institutional mechanisms for independent oversight
Focus on climate finance, cybersecurity, and PSB governance reforms
Drop in Saudi Arabia, Kuwait, and Qatar contributions
GCC now accounts for less than half of total remittances
Why This Shift?
🔻 GCC Decline Reasons
COVID-19 impact → Job losses, pay cuts
“Saudisation” policies (e.g. Nitaqat Scheme) → Preference for locals
Rising costs of living and limited growth for blue-collar workers
🔼 AE Rise Reasons
Higher wages, stronger currencies → Greater per capita remittances
Surge in skilled Indian professionals in STEM, healthcare, finance
Indian students abroad (loan repayments, family support)
Rising diaspora integration in AEs