Consider the following statements regarding India’s inward remittances:

1. There has been a decline in the Gulf countries’ share of India’s inward remittances, while contributions from advanced economies have increased.

2. Maharashtra and Kerala have held the top share of India’s inward remittances for the last five years.

Which of the statements given above is/are correct?

The correct answer is option 3.

In News

• The latest data indicates a decline in the Gulf countries’ share of India’s inward remittances, while contributions from advanced economies have increased.

Key Points

• The share of inward remittances from Gulf countries has declined, while that from developed nations has increased.
  • UAE’s share fell from 26.9% in 2016-17 to 19.2% in 2023-24, and Saudi Arabia’s from 11.6% to 6.7%.
  • Conversely, the U.S. share rose from 22.9% to 27.7%, and the U.K. from 3.4% to 10.8%.
    • Hence, Statement 1 is correct.
• Maharashtra and Kerala have consistently led in inward remittances over the last five years.
  • Maharashtra’s share increased from 16.7% to 20.5%, and Kerala’s from 19% to 19.7%.
    • Hence, Statement 2 is correct.

Additional Information

• Migration Trends:
  • The number of blue-collar workers emigrating to the Gulf from southern States (Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Punjab) has declined significantly.
  • In contrast, migration from Uttar Pradesh and Bihar to the Gulf remains high, despite their remittance shares being lower.
• Changing Remittance Patterns:
  • Migrants from southern States are increasingly moving to developed nations such as the U.S., U.K., and Canada, which offer higher wages and remittances.
  • Meanwhile, low-wage migration to the Gulf from U.P. and Bihar continues due to limited domestic job opportunities.