In a quiet corner of Singapore, software engineer Abhinav Gupta embodies a transformative trend among the overseas Indian diaspora. Having relocated from India in March 2023, Gupta now earns a near six-figure salary, investing a significant portion back into India’s stock market and mutual funds. “I believe in the Indian market. I think it’s a good return” said Gupta, who requested anonymity regarding his investments. His story reflects a broader shift: skilled Indian professionals are increasingly migrating to advanced economies, reshaping the sources of remittances that fuel India’s economic growth.

A Changing Landscape of Indian Migration

The overseas Indian population, estimated at around 18.5 million, has traditionally been associated with low- or semi-skilled workers in Gulf Cooperation Council (GCC) countries like Saudi Arabia, the UAE, and Qatar. However, recent data highlights a pivot toward advanced economies such as the United States, Britain, and Singapore, where highly skilled workers like Gupta are finding lucrative opportunities. According to a March 2025 research paper from the Reserve Bank of India (RBI), remittances from GCC countries have declined from 46.7 percent of India’s total inflow in the financial year ending March 2017 to 37.9 percent in 2024, while contributions from advanced economies surged from 34.4 percent to 51.2 percent over the same period.

The United States now leads as the largest source of remittances, accounting for 27.7 percent of the total in 2024, overtaking the UAE, which previously held the top spot. Singapore’s share also rose from 5.5 percent in 2017 to 6.6 percent in 2024, reflecting its growing appeal as a hub for skilled professionals. This shift underscores a profound change in the profile of Indian migrants—from laborers in construction and domestic work to professionals in technology, management, and science. In the US alone, an estimated 78 percent of over two million Indian migrants are employed in high-paying sectors, a trend mirrored in other developed nations.

Economic Implications for India

Remittances have long been a cornerstone of India’s external financing, surpassing foreign direct investment since the early 2000s. In 2024, India received a record US$129.4 billion from abroad, marking the third consecutive year above the US$100 billion threshold, according to World Bank data. Experts suggest this figure could soar to US$300 billion within the next decade if India strategically aligns its workforce with global demand. “We need to send the right people with the right skills to the right place” said Dr. S. Irudaya Rajan, chairman of the International Institute for Migration and Development, in a recent interview with a regional outlet.

The economic impact of this trend is multifaceted. Remittances provide a stable source of foreign exchange, bolster household incomes, and support domestic consumption in India. They also play a critical role in balancing the country’s current account deficit. However, the decline in contributions from GCC countries—attributed to post-Covid job losses, salary cuts, and local employment prioritization policies—has raised concerns about over-reliance on advanced economies. Currency appreciation, such as the US dollar’s rise from 76 to over 85 Indian rupees since April 2020, has further incentivized higher remittances from these regions, though experts caution this may be a temporary boost.

Policy Responses and Challenges

Recognizing the importance of remittances, the Indian government has prioritized skill development as a pathway for overseas migration. Initiatives aim to equip workers with the expertise needed to meet evolving global demands, particularly in technology and healthcare sectors. The RBI paper emphasizes the need for policymakers to study labor market trends abroad to ensure Indian workers remain competitive. This strategy not only secures higher earnings for individuals but also maximizes remittance inflows for national development.

Yet, challenges loom on the horizon. The rise of anti-migrant sentiment and right-wing populism in advanced economies, particularly in the US and parts of Europe, poses a risk to sustained migration. Dr. Rajan warns against viewing the current trend as a permanent victory. “In another five to six years, the Gulf countries may be back on top” he said, urging a nimble approach to migration policies. India must proactively identify skill gaps in target countries and tailor training programs accordingly to maintain its edge.

Additionally, the cost of sending money home remains a barrier. The World Bank notes that the average cost of remitting US$200 to India in the third quarter of 2024 was 5.3 percent—below the global average of 6.62 percent but still above the UN Sustainable Development Goal target of 3 percent by 2030. Innovations like the integration of India’s Unified Payments Interface with systems such as Singapore’s PayNow could lower these costs, making remittances more accessible and efficient for migrant workers.

Personal Stories Behind the Numbers

Beyond the statistics, individual experiences highlight the human dimension of this economic shift. For professionals like Gupta, migration to advanced economies offers not just financial rewards but also improved quality of life. Singapore, often dubbed the “New York City of South-east Asia,” attracted Gupta with its high liveability index and career prospects. His monthly investments of US$1,000 to US$2,000 in Indian markets reflect a dual commitment—to personal wealth and national growth. Such stories are becoming increasingly common as more Indians seek opportunities in cities known for innovation and stability.

Students, too, contribute to this trend. Many Indian students in advanced economies take up part-time work to repay educational loans, sending small but significant sums back home. Their presence, alongside skilled professionals, underscores the diversity of India’s modern diaspora and its evolving economic footprint.

Regional Dynamics and Singapore’s Role

In South-east Asia, Singapore stands out as a key destination for skilled Indian workers. Its strategic location, robust economy, and demand for tech talent have made it a magnet for professionals like Gupta. The city-state’s growing share of India’s remittances—up to 6.6 percent in 2024—mirrors broader regional trends, where countries with advanced infrastructure and high wages are drawing talent from across the globe. This aligns with Singapore’s broader vision of positioning itself as a global hub for innovation, often competing with traditional migration destinations like the US and Britain.

However, the concentration of remittances from a handful of advanced economies raises questions about economic diversification. While Singapore and other regional players offer promising opportunities, India must balance these gains with renewed engagement in GCC markets, where historical ties and large migrant communities still hold potential for recovery post-pandemic.

Looking Ahead: A Balancing Act

As India navigates this evolving landscape, the interplay between migration, skill development, and remittance flows will shape its economic future. The rise of skilled workers in advanced economies offers a window of opportunity, but it comes with caveats—geopolitical risks, fluctuating currency values, and the need for adaptive policies. For now, the stories of individuals like Abhinav Gupta illuminate a path forward, where personal ambition and national growth converge in a globalized world. How India leverages this moment—balancing innovation with resilience—remains an open question for policymakers and communities alike.