The Road Ahead:
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India’s policy ecosystem is responding to this diaspora shift with proactive measures
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The RBI continues to ease foreign exchange rules, offer higher deposit returns for NRIs, and promote digital transfer systems to reduce transaction costs
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As India navigates global headwinds and geopolitical transitions, the diaspora’s dual identity as emotional stakeholders and financial contributors will be central
Non-Resident Indians (NRIs) are proving to be more than just cultural ambassadors—they are rapidly becoming India’s most reliable economic buffer against global turbulence. As geopolitical tensions, trade wars, and economic realignments ripple across the world, India is increasingly leaning on its global diaspora to stabilize its current account and bolster foreign reserves, reported economictimes.indiatimes.com.
According to the Reserve Bank of India’s (RBI) most recent bulletin, inward remittances combined with robust service exports continue to act as vital shock absorbers in a time of increasing international economic volatility. India’s foreign exchange reserves surged by $1.5 billion to reach $677.84 billion as of April 11, 2025. A significant portion of this strength is attributed to the record $129.4 billion in remittances received in 2024—India’s third consecutive year crossing the $100 billion threshold.
“Indian migrants have transformed from mere senders of money to strategic stakeholders in India’s economic journey,” says Neerav Sethi, senior economist at the Global India Policy Centre. “They’re not only offsetting the trade deficit but also helping stabilize the rupee and ensure liquidity through turbulent phases.”
Remittances now make up nearly 3% of India’s GDP and have become the second-largest source of external financing after service exports. While historically dominated by blue-collar remittances from Gulf nations, the composition has evolved. Recent RBI data shows that over 50% of India’s remittances in 2023-24 came from advanced economies (AEs) such as the US, UK, Canada, Singapore, and Australia—marking a decisive shift in the NRI profile.
“Earlier, remittances were linked to workers in construction or hospitality sectors. Now, it’s increasingly the white-collar diaspora—engineers, doctors, tech executives—who are driving the momentum,” the report cited Dr. Ayesha Menon as saying. She is a migration studies expert at the Indian Institute of Global Affairs.
Indian migrants in GCC countries still account for nearly half of the 18.5 million Indians overseas. But the United States remains the top contributor, making up 27.7% of total remittances, thanks to its high-paying jobs in the tech and healthcare sectors. The UAE continues as the second largest contributor at 19.2%.
The trajectory of Indian outward migration has dramatically shifted since the oil boom of the 1970s and the IT revolution of the 1990s. From sending semi-skilled workers to exporting top-tier talent, India’s migrant story is now a tale of influence, investment, and innovation.
NRIs as Investors: Backing India’s Growth Story
Beyond remittances, NRIs are increasingly investing across Indian asset classes—from real estate to equities and startups. This trend is being driven by a combination of macroeconomic and structural factors.
The ET report quoted Ankit Rawal, co-founder of cross-border investment platform DesiFund on the issue. He believes India’s rise is sparking a global NRI awakening. “With India poised to hit the $5 trillion GDP mark by 2025 and emerging as a global manufacturing and digital powerhouse, diaspora investors see immense long-term value,” he says.
Several forces are driving this NRI investment boom:
India’s Economic Growth: India remains the world’s fastest-growing major economy, with ambitious infrastructure projects and structural reforms reinforcing its economic outlook.
Stock Market Performance: Indian equities have offered strong returns and are backed by robust regulatory frameworks, attracting long-term foreign retail investors.
Standard of Living: Many NRIs are now contemplating a return or dual-residence option, thanks to improving urban infrastructure and a maturing start-up ecosystem.
Currency Advantage: The rupee’s relative depreciation enhances the value of NRI investments in India, making real estate and equity markets more attractive.
According to a recent survey by the India Capital Markets Forum, nearly 68% of NRIs polled across North America, Europe, and the Gulf expressed intent to invest in India over the next 12 months, citing favorable policy changes and ease of digital access.
“The global Indian is now a cornerstone of India’s economic resilience. Their success is no longer just a personal journey—it’s a national asset,” the report quoted Sunita Deshpande, policy analyst and advisor to the Ministry of External Affairs, as saying.