Skilled Indian Migrants Shift to Advanced Economies

March 20, 2025

Recent trends indicate shift in the demographics of Indian migrants. According to the Reserve Bank of India’s latest survey, skilled professionals are increasingly moving to advanced economies. This change is reflected in the rising share of remittances from countries like the United States, which now leads in sending money back to India.

Remittance Trends in 2023-24

In the financial year 2023-24, the United States contributed 27.7% of total remittances to India. The United Arab Emirates followed with a 19.2% share. This marks a notable change from previous years, where Gulf Cooperation Council (GCC) nations dominated remittance flows. In 2016-17, the UAE led with 26.9%, while the US was at 22.9%.

Shift in Migration Patterns

The RBI survey marks a transition in the types of jobs held by Indian migrants. In the US, a majority of Indian migrants are employed in high-earning white-collar occupations. These include management, business, science, and arts. Conversely, many Indian workers in the UAE engage in blue-collar jobs, primarily in construction, healthcare, and hospitality.

Regional on Remittances

Maharashtra has emerged as the leading state in receiving remittances, accounting for 20.5% in 2023-24. Kerala, previously the top recipient, now holds the second position. Tamil Nadu has also increased its share from 8% in 2016-17 to 10.4% in 2023-24. This shift indicates changing economic dynamics within India.

Global Remittance Landscape

India’s share of global remittances has increased from approximately 11% in 2001 to about 14% in 2024. Other recipients of remittances include Mexico, China, the Philippines, France, Pakistan, and Bangladesh. The World Bank projects that Indian remittances could reach around US$ 160 billion by 2029.

Impact of Digitalisation

The RBI report also notes a decrease in the cost of sending remittances due to digitalisation. In 2023-24, 73.5% of remittances were sent through digital channels. This trend is expected to facilitate easier and more cost-effective remittance processes for Indian migrants.

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