Daijiworld Media Network – New Delhi

New Delhi, Mar 28: Remittance inflows to India have doubled over the past decade, with advanced economies such as the United States, United Kingdom, Canada and Australia accounting for an increasing share, according to a report by Indiaspora.

The report attributes the rise to migration of highly skilled Indian professionals to these countries, coupled with growing income levels among the diaspora. This shift has helped diversify India’s remittance sources, reducing dependence on any single region and improving financial stability.

India currently receives around $138 billion annually in remittances, surpassing foreign direct investment inflows. The global Indian diaspora, estimated at 35 million, generates over $700 billion in income worldwide, highlighting its economic influence.

At the household level, remittances continue to play a crucial role. In states like Kerala, which accounts for nearly 20% of India’s remittance inflows despite having just about 3% of the population, funds are largely used for housing, education and loan repayments.

The report also notes that over 70% of diaspora members expect remittance flows to either remain stable or increase over the next two years, indicating sustained financial support.

Beyond remittances, Indian-origin professionals are making significant contributions to India’s startup and philanthropic sectors. More than 75% of overseas angel investors backing Indian startups are of Indian origin, while leaders from the diaspora play key roles in global foundations, directing substantial funds to Indian non-profits.

Their influence extends to healthcare as well, with one in ten physicians in the United States being of Indian origin. Many also head major global medical and pharmaceutical institutions, underlining the growing global footprint of the Indian diaspora.