More Than 163k Indians Renounce Their Citizenships To Migrate
In today’s blog update, let’s find out why America has become the top destination for migrating Indians.
America has become the leading choice for Indians aspiring to leave their country for a more promising life. But even after achieving the American dream, they don’t neglect their motherland. In fact, at the time of the pandemic, Indian Americans superseded UAE as the leading source of remittances to families back home.
According to official data, more than 163,000 Indians, which was the highest in the last five years, renounced their citizenship in 2021.
Of the 163,370 Indians who renounced their Indian citizenship in 2021, a significant 78,284 picked the US as their adoptive country. Additional top alternatives were Australia (23,533), Canada (21,597), the UK (14,637), and Italy (5,986).
While a destructive COVID-19 second wave caused many to contemplate permanently leaving the country, the pandemic witnessed increased remittances from the US.
According to the research on the impact of Covid on remittances in 2020-21 by the Reserve Bank of India (RBI), the US surpassed the United Arab Emirates (UAE) as the leading source country, adding up to 23% of total remittances in 2020-21.
This fact confirms by the World Bank’s report in 2021, citing an economic recovery in the US as one of the critical drivers of India’s remittance growth.
According to RBI, the remittance share from the Gulf Cooperation Council (GCC) region in India’s inward remittances is evaluated to have plunged from more than 50% in 2016-17 (last surveyed period) to approximately 30% in 2020-21,
With the steady migration of skilled workers, the US, the UK, and Singapore surfaced as essential source countries of remittances, adding up to 36% of total remittances in 2020-21.
For the past two decades, the US, the UAE, and Saudi Arabia have been the three primary destinations of Indian migrants. Of the total Indian migrants, by the end of 2020, 48.6% were in the UAE, the US, and Saudi Arabia.
Historically, the GCC region was responsible for half of India’s remittances, creating a significant amount of the oil trade deficit with the region.
RBI stated that the descent in the share of Gulf countries in total remittances echoed the sluggish migration pace and existence of the Indian diaspora in informal sectors, which was affected the most at the time of the pandemic.
RBI further added that the amount of small-sized transactions grew, reflecting stressed income conditions due to Covid-19. Also, that divergence was reflected in the performance of bank groups. This is due to the public sector banks losing market share meanwhile, the private banks retain their supremacy in the remittances business.
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