Despite small diaspora share, Gulf-based Indians send home 40% of remittances

In this file photo taken on April 19, 2023, people crowd on platforms as they wait for their train at the Chhatrapati Shivaji Terminus railway station in Mumbai, India. (AFP)
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Updated 19 April 2025
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Despite small diaspora share, Gulf-based Indians send home 40% of remittances

  • India’s diaspora is one of the largest, accounting for 35.4 million people
  • Most Indians in Gulf countries do not plan to settle there and focus on earning

NEW DELHI: Despite making up only about one-quarter of India’s overseas population, Indian nationals in Gulf states send almost 40 percent of the country’s bank remittances, the latest data shows.

India’s diaspora is one of the largest, accounting for 35.4 million people, based on last month’s estimates submitted to parliament by Minister of State for External Affairs Pabitra Margherita.

Members of the diaspora are a key source of India’s foreign currency inflows and, in the fiscal year 2023–24, sent home $118.7 billion, according to a remittances survey released in March by the Reserve Bank of India.

Indians living and working in the six Gulf Cooperation Council countries accounted for almost 40 percent of this amount, led by those in the UAE, Saudi Arabia and Qatar — 19.2 percent, 6.7 percent and 4.1 percent, respectively.

The 40-percent remittance share from Gulf-based Indians is disproportionately high compared to their share of the overall diaspora. Of the 35.4 million Indians living abroad, only 9.7 million — just slightly more than one-quarter — reside in GCC countries, according to data from India’s Ministry of External Affairs.

Dr. S. Irudaya Rajan, chair of the International Institute for Migration and Development in Thiruvananthapuram, Kerala, attributes the imbalance to the nature of Indian migration in the Middle East.

“People who go to work in the Gulf don’t plan to settle there, but work and bring money home and support the family ... they are coming to make money and secure their future in India,” Rajan told Arab News.

“They went to earn money with double work, midnight work, evening work, overtime work to send it back home.”

The reason why many of them are able to save and send more is that most travel to Gulf countries alone, focusing on work as there are no prospects of obtaining citizenship — unlike in other major migration destinations like the US and UK.

Out of the 4.3 million Indians living in the UAE, 2.65 million in Saudi Arabia, 1 million in Kuwait, 830,000 in Qatar, 665,000 in Oman and 350,000 in Bahrain, the majority were either unmarried or had their family waiting for them back home.

“Eighty percent of them are living alone ... they are not taking their wives, they are not taking their children,” Rajan said.

“Either they are unmarried and are sending money to their parents, or they are married and sending it to their wives and their parents, or they are sending it to their children studying in some other country.”

The actual amount of remittance coming from overseas Indians was likely much higher than what the central bank indicated. While the RBI’s survey covered 30 banks, two money transfer operators and two fintech companies in the cross-border remittance business, inward remittances from the Gulf also reach India through informal means.

Given the region’s proximity and frequent and cheap flights, money can be easily brought from places like Dubai without relying on bank transfers — unlike remittances from Europe, Singapore, or the US.

“From the informal channel, it can be as much as the formal channel,” Rajan said.

“All estimates on remittances are underestimated. The government of India, the World Bank, the RBI — all will underestimate the remittance because they can calculate it only from the formal channel.”

While the central bank’s data has shown an increase in the remittance share from the West and a drop from the Middle East compared with the previous survey in 2016-17, Rajan forecast that the Gulf will still continue to play a major role.

“These remittances coming from Canada, Australia (and the US), are more because they are vacating the place and coming home. People who are coming from America will bring all their savings, all that they had in America, so this is a short-term trend,” he said.

“I think the Gulf will bounce back ... the future will be very uncertain for migration, but Gulf migration will continue for at least the next 15 to 20 years.”


Starmer and Xi call for deeper UK-China ties as Trump shakes up global relations

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Starmer and Xi call for deeper UK-China ties as Trump shakes up global relations

  • Neither Prime Minister Keir Starmer nor President Xi Jinping publicly mentioned Donald Trump
  • But the US president’s challenge to the post-Cold War order was clearly on their minds

BEIJING: The leaders of Britain and China called Thursday for a “strategic partnership” to deepen ties between their nations at a time of growing global turbulence as they sought to thaw relations after years of chill.

Neither Prime Minister Keir Starmer nor President Xi Jinping publicly mentioned Donald Trump, but the US president’s challenge to the post-Cold War order was clearly on their minds.

“I think that working together on issues like climate change, global stability during challenging times for the world is precisely what we should be doing as we build this relationship in the way that I’ve described,” Starmer told Xi at the start of their meeting in Beijing.

The two met for 80 minutes — double the scheduled time — in the Great Hall of the People as their nations try to improve relations after several years of acrimony. Relations have deteriorated over allegations of Chinese spying in Britain, China’s support for Russia in the Ukraine war and the crackdown on freedoms in Hong Kong, the former British colony that was returned to China in 1997. Starmer is the first British prime minister to visit in eight years.

Xi said that “China-UK relations experienced twists and turns in previous years, which was not in the interests of either country.”

“In the current turbulent and ever-changing international situation ... China and the UK need to strengthen dialogue and cooperation to maintain world peace and stability,” he said.

Chinese state broadcaster CCTV said Xi had stressed, without mentioning the US directly, that “major powers” must adhere to international law or the world would regress into a “jungle.”

Relationship is in ‘a good place’

Starmer’s Downing Street office said Britain wanted “a consistent, long-term, and strategic partnership that will benefit both countries.”

After the meeting, Starmer said the leaders had made “really good progress” on issues including slashing Chinese tariffs on Scotch whisky and introducing visa-free travel for British visitors.

“The relationship is in a good place, a strong place,” the British leader said.

Xi appeared to acknowledge the criticism that Starmer has faced for reaching out to China despite national security and human rights concerns. The UK recently approved controversial plans for a huge Chinese Embassy in London, removing a sticking point in relations but also overriding fears that the “mega-embassy” would make it easier for China to conduct espionage and intimidate dissidents.

“Good things often come with difficulties,” Xi said. “As long as it is the right thing to do in accordance with the fundamental interests of the country and its people, leaders will not shy away from difficulties and will forge ahead bravely.”

Starmer’s visit comes less than two months after a Hong Kong court convicted Jimmy Lai, a former newspaper publisher and British citizen, under a national security law that Beijing imposed on the territory after massive pro-democracy protests in 2019.

Starmer said he raised human rights issues with Xi and the two men had a “respectful discussion.”

Starmer, who was elected in July 2024, has said he will protect national security while keeping up diplomatic dialogue and economic cooperation with China. He told Xi that it has “been far too long” since a UK prime minister visited.

“I made a promise 18 months ago when we were elected into government, that I would make Britain face outward again,” the leader of the center-left Labour Party said. “Because as we all know, events abroad affect everything that happens back in our home countries, from prices on the supermarket shelves to how secure we feel.”

Starmer’s government has struggled to deliver the economic growth it promised and ease a cost-of-living crisis for millions of households and he sees China as a potential source of growth.

More than 50 UK business executives have joined him on the trip, along with the leaders of major cultural organizations, as he seeks to expand opportunities for British companies in China and secure Chinese investment in the UK

Trump tariffs spur new trade talks

The disruption to global trade under Trump has made expanding trade and investment more imperative for many governments. Vietnam and the European Union upgraded ties to a comprehensive strategic partnership Thursday, two days after the EU and India announced a free trade accord.

“At a moment when the international rules-based order is under threat from multiple sides, we need to stand side by side as reliable and predictable partners,” European Council President Antonio Costa said in Hanoi, Vietnam.

Starmer is the fourth leader of a US ally to visit Beijing this month, following those of South Korea, Canada and Finland. The German chancellor is expected to visit next month.

The UK leader also met Thursday with Zhao Leji, the chairman of China’s legislature, the National People’s Congress, and Premier Li Qiang, who told Starmer his efforts to improve relations had been “widely welcomed” in both countries.

The two countries were expected to sign a number of agreements. One will try to disrupt the trade in Chinese boat engines used by smugglers to bring people across the English Channel to Britain. More than half the engines come from China, the British government said. Under the agreement, U.K law enforcement agencies will work with Chinese authorities and manufacturers to prevent engines from ending up in the hands of criminal gangs.