India’s growing white-collar NRI community is boosting its global financial power through remittances and investments
The Indian diaspora has been a cornerstone of India’s international influence for years, often seen as the country’s soft power. However, a recent analysis from the Reserve Bank of India (RBI) highlights a new dimension to this power: the growing financial influence of Indian migrants, especially those in white-collar jobs.
The surge in remittances from advanced economies such as the US, UK, and Australia is now surpassing that from the Gulf countries, signaling a shift in migration patterns. In 2023-24, India’s remittances surged to $118.7 billion, a major contributor to the country’s financial stability, reported economictimes.indiatimes.com.
The Economic Impact of White-Collar NRIs
Indian migrants, especially those in skilled professions in North America and Europe, are now a leading source of remittances.
White-collar NRIs have bolstered India’s economy, compensating for trade deficits and providing stability during external financial shocks.
According to RBI, while Gulf Cooperation Council (GCC) countries remain a key contributor to remittances, the US has emerged as the largest source, with 27.7% of India’s remittances in 2023-24 coming from the country
The Astounding Success of Indian-Americans
The success of the Indian-American community is a testament to their rising influence. A report by BCG and Indiaspora reveals that the 51 lakh Indian diaspora in the US has a median income of $136,000, nearly double the US average. They contribute significantly to sectors like healthcare, hospitality, and retail, owning 60% of US hotels and generating $700 billion in revenue. With their dominance in business and leadership roles, Indian-Americans are shaping the economic landscape in the US.
NRIs Increasingly Investing Back in India
Along with sending remittances, NRIs are increasingly investing in India. Factors driving this trend include India’s rapid economic growth, a thriving stock market, improved living standards, and the depreciation of the Indian Rupee. Harsh Gahlaut, Co-founder & CEO of FinEdge, identifies these as key reasons why NRIs are flocking to invest in India’s real estate, equities, and start-ups, capitalizing on the country’s growing potential.
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