Despite small diaspora share, Gulf-based Indians send home 40% of remittances

Special In this file photo taken on April 19, 2023, people crowd on platforms as they wait for their train at the Chhatrapati Shivaji Terminus railway station in Mumbai, India. (AFP)
In this file photo taken on April 19, 2023, people crowd on platforms as they wait for their train at the Chhatrapati Shivaji Terminus railway station in Mumbai, India. (AFP)
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Updated 19 April 2025

Despite small diaspora share, Gulf-based Indians send home 40% of remittances

Despite small diaspora share, Gulf-based Indians send home 40% of remittances
  • India’s diaspora is one of the largest, accounting for 35.4 million people
  • Most Indians in Gulf countries do not plan to settle there and focus on earning

NEW DELHI: Despite making up only about one-quarter of India’s overseas population, Indian nationals in Gulf states send almost 40 percent of the country’s bank remittances, the latest data shows.

India’s diaspora is one of the largest, accounting for 35.4 million people, based on last month’s estimates submitted to parliament by Minister of State for External Affairs Pabitra Margherita.

Members of the diaspora are a key source of India’s foreign currency inflows and, in the fiscal year 2023–24, sent home $118.7 billion, according to a remittances survey released in March by the Reserve Bank of India.

Indians living and working in the six Gulf Cooperation Council countries accounted for almost 40 percent of this amount, led by those in the UAE, and Qatar — 19.2 percent, 6.7 percent and 4.1 percent, respectively.

The 40-percent remittance share from Gulf-based Indians is disproportionately high compared to their share of the overall diaspora. Of the 35.4 million Indians living abroad, only 9.7 million — just slightly more than one-quarter — reside in GCC countries, according to data from India’s Ministry of External Affairs.

Dr. S. Irudaya Rajan, chair of the International Institute for Migration and Development in Thiruvananthapuram, Kerala, attributes the imbalance to the nature of Indian migration in the Middle East.

“People who go to work in the Gulf don’t plan to settle there, but work and bring money home and support the family ... they are coming to make money and secure their future in India,” Rajan told Arab News.

“They went to earn money with double work, midnight work, evening work, overtime work to send it back home.”

The reason why many of them are able to save and send more is that most travel to Gulf countries alone, focusing on work as there are no prospects of obtaining citizenship — unlike in other major migration destinations like the US and UK.

Out of the 4.3 million Indians living in the UAE, 2.65 million in , 1 million in Kuwait, 830,000 in Qatar, 665,000 in Oman and 350,000 in Bahrain, the majority were either unmarried or had their family waiting for them back home.

“Eighty percent of them are living alone ... they are not taking their wives, they are not taking their children,” Rajan said.

“Either they are unmarried and are sending money to their parents, or they are married and sending it to their wives and their parents, or they are sending it to their children studying in some other country.”

The actual amount of remittance coming from overseas Indians was likely much higher than what the central bank indicated. While the RBI’s survey covered 30 banks, two money transfer operators and two fintech companies in the cross-border remittance business, inward remittances from the Gulf also reach India through informal means.

Given the region’s proximity and frequent and cheap flights, money can be easily brought from places like Dubai without relying on bank transfers — unlike remittances from Europe, Singapore, or the US.

“From the informal channel, it can be as much as the formal channel,” Rajan said.

“All estimates on remittances are underestimated. The government of India, the World Bank, the RBI — all will underestimate the remittance because they can calculate it only from the formal channel.”

While the central bank’s data has shown an increase in the remittance share from the West and a drop from the Middle East compared with the previous survey in 2016-17, Rajan forecast that the Gulf will still continue to play a major role.

“These remittances coming from Canada, Australia (and the US), are more because they are vacating the place and coming home. People who are coming from America will bring all their savings, all that they had in America, so this is a short-term trend,” he said.

“I think the Gulf will bounce back ... the future will be very uncertain for migration, but Gulf migration will continue for at least the next 15 to 20 years.”


Trump likely to meet Zelensky next week on peace efforts: Rubio

Updated 4 sec ago

Trump likely to meet Zelensky next week on peace efforts: Rubio

Trump likely to meet Zelensky next week on peace efforts: Rubio
TEL AVIV: President Donald Trump will likely meet Ukrainian counterpart Volodymyr Zelensky next week and still hopes to broker a peace deal between Kyiv and Moscow, Secretary of State Marco Rubio said Tuesday.
Trump has repeatedly threatened sanctions against Russia if President Vladimir Putin does not compromise. But he has not followed through even as Russia ramps up attacks, frustrating Ukraine.
Trump has had “multiple calls with Putin, multiple meetings with Zelensky, including probably next week again in New York,” where leaders will gather for the UN General Assembly, Rubio told reporters in Israel.
“He’s going to keep trying. If peace is possible, he wants to achieve it,” Rubio said.
“At some point the president may conclude it’s not possible. He’s not there yet, but he could get to that point.”
Rubio pointed to a figure previously cited by Trump, saying that Russia lost 20,000 soldiers in fighting in July alone.
Trump a month ago welcomed Putin to Alaska — the first time a Western nation has allowed the Russian leader to visit since he ordered the invasion of Ukraine in 2022 — and days later met with Zelensky alongside European leaders at the White House.
Rubio said that Trump was unique in being able to speak to Putin as well as Zelensky and the Europeans.
“If somehow he were to disengage from this, or sanction Russia and say, ‘I’m done’, then there’s no one left in the world that could possibly mediate the end,” Rubio said.
Trump came into office vowing to end the war within a day, blaming his predecessor Joe Biden for Russia’s invasion and criticizing the billions of dollars provided by the United States to Ukraine.
At a February 28 meeting at the White House that stunned US allies, Trump and Vice President JD Vance publicly berated Zelensky, accusing him of ingratitude, and then briefly cut off US military and intelligence support for Ukraine.
Zelensky has since met Trump twice and each time gone out of his way to praise the US president and voice appreciation for American support.

Pakistan military kills 31 militants, as presence increases

Pakistan military kills 31 militants, as presence increases
Updated 7 min 32 sec ago

Pakistan military kills 31 militants, as presence increases

Pakistan military kills 31 militants, as presence increases
  • It comes after 12 soldiers were killed in an ambush in a neighboring district on Saturday
  • Militancy has surged in border regions with Afghanistan since the Taliban’s return to power

ISLAMABAD: Pakistan’s military said it had killed 31 local Taliban militants in two separate operations near the border with Afghanistan, where the group’s presence has increased.
It comes after 12 soldiers were killed in an ambush in a neighboring district on Saturday, an attack claimed by the Pakistani Taliban (TTP).
The military said in a statement published late Monday that it had killed 31 “Khwarij” over the weekend, a recent term adopted by authorities to describe TTP fighters.
It accused archfoe India, with which Pakistan fought a four-day skirmish in May, of backing the militants.
The nuclear armed neighbors have long accused each other of backing militant forces to destabilize one another.
“Sanitization operations are being conducted to eliminate any other Indian sponsored” militants in the area, said the statement published late Monday.
Militancy has surged in the border regions with Afghanistan since the return to power of the Afghan Taliban in Kabul in 2021.
Security officials have said that the presence of TTP militants has increased over the past two months.
The TTP, which is waging a campaign against security forces, is a separate group from the Afghan Taliban, but they are closely linked.
Islamabad accuses neighboring Afghanistan of failing to expel militants using Afghan territory to launch attacks on Pakistan, which authorities in Kabul deny.
More than 460 people, mostly members of the security forces, have been killed this year in attacks carried out by armed groups fighting the state, both in northwestern Khyber Pakhtunkhwa and the southern province of Balochistan, according to an AFP tally.
Last year was Pakistan’s deadliest in nearly a decade, with more than 1,600 killed, nearly half of them soldiers and police officers, according to the Islamabad-based Center for Research and Security Studies.


UN report details ‘systematic looting’ by South Sudan’s rulers as citizens went hungry

UN report details ‘systematic looting’ by South Sudan’s rulers as citizens went hungry
Updated 18 min 15 sec ago

UN report details ‘systematic looting’ by South Sudan’s rulers as citizens went hungry

UN report details ‘systematic looting’ by South Sudan’s rulers as citizens went hungry
  • The payments from 2021 to 2024 were just one example of “grand corruption” in the impoverished nation, according to the report by the UN Commission on Human Rights in South Sudan

NAIROBI: UN investigators on Tuesday accused South Sudanese authorities of plundering their country’s wealth, including by paying $1.7 billion to companies affiliated with Vice President Benjamin Bol Mel for road construction work that was never done.
The payments from 2021 to 2024 were just one example of “grand corruption” in the impoverished nation, according to the report by the UN Commission on Human Rights in South Sudan, where average gross domestic product per capita is now a quarter of what it was at independence in 2011.
“The country has been captured by a predatory elite that has institutionalized the systematic looting of the nation’s wealth for private gain,” said the commission, which was created in 2016 by the UN Human Rights Council.
The report cites an annual budget allocation to the president’s medical unit that exceeded health spending across the entire country.
In an official written response sent to the UN commission, Justice Minister Joseph Geng said the report was based on figures that do not match the government’s own data and attributed South Sudan’s economic problems to conflict, climate change and falling sales of its chief export, crude oil.
A spokesperson for Bol Mel declined to comment.
CONFLICT HAS RAGED SINCE INDEPENDENCE
Since 2011, South Sudan has endured repeated bouts of armed conflict, including a 2013-2018 civil war in which an estimated 400,000 people died.
Last week, the government charged First Vice President Riek Machar — whose forces opposed soldiers loyal to President Salva Kiir in the civil war — with crimes against humanity, escalating a feud that has fueled fighting in recent months.
South Sudan is also contending with steep cuts to the foreign humanitarian aid it receives each year.
But the report said corruption best explains its sustained economic and humanitarian woes, with nearly two-thirds of its 12 million people facing crisis levels of hunger or worse.
The commission said the report was based on 173 targeted meetings and interviews from late 2022 to late 2024 as well as government documentation and financial data.
It said its focus on corruption was warranted because graft has undermined the government’s ability to meet its human rights obligations and directly fueled armed violence.
“Locked in a zero-sum competition for power and control of resources and territory, South Sudan’s elites continue to pursue partisan political ends, mobilizing and exploiting ethnic differences and tensions,” it said.
OFF-BUDGET ‘OIL FOR ROADS’
The 101-page report spotlights companies associated with Bol Mel, whom President Salva Kiir elevated to one of South Sudan’s five vice presidential positions in February.
The US government sanctioned Bol Mel and two companies it said were associated with him in 2017, saying one of the firms had allegedly received preferential treatment from high-level government officials to do road work in the country. The US sanctioned two more of his companies in 2021.
After the 2017 sanctions were announced, South Sudan’s government denied the US characterization of him as Kiir’s personal financial adviser and said the decision to blacklist him was based on misleading information.
South Sudanese officials have been asking US President Donald Trump’s administration to lift those sanctions during recent bilateral discussions, Joseph Szlavik, a lobbyist working for Juba in Washington, told Reuters last month.
Those conversations have also touched on sending more US deportees to South Sudan following the arrival in July of eight men, including seven from third countries, Szlavik said.
The State Department told Reuters it does not provide details on private diplomatic communications, but called on Juba to “begin using public revenue to address the public need of the people of South Sudan rather than rely on international assistance.”
According to the UN report, South Sudan’s government disbursed an estimated $2.2 billion from 2021 to 2024 to companies affiliated with Bol Mel through its off-budget “Oil for Roads” program.
In some years, this program consumed around 60 percent of all government disbursements, the report said.
Despite the outlays, the companies affiliated with Bol Mel completed less than $500 million worth of driveable roads, inflating the value of construction contracts by overstating the length of the roads, overcharging relative to industry standards and building fewer lanes than agreed, the report said.
The report did not specify how the companies are affiliated with Bol Mel, but two of the three that it cited by name were those sanctioned by the US in 2021.
Bol Mel has never publicly responded to the accusations against him.
In his response, Justice Minister Geng dismissed the allegations about road spending, saying sums cited in the report were absurdly high given South Sudan’s economic realities.
He pointed to anti-corruption legislation enacted before independence and in July 2024 as proof of the government’s “serious commitment and will to combat corrupt practices.”
PUBLIC SPENDING DOES NOT MEET PUBLIC NEEDS
More broadly, the report said public spending priorities did not reflect the government’s obligations to its citizens.
Little of the more than $23 billion raised from oil exports since independence has gone to address pressing needs like education, health care and food security, it said.
For example, in the 2022-2023 national budget, more money was allocated to the Presidential Medical Unit than to the community, public, secondary and tertiary public health care systems across the entire country, it said.
The government’s response did not specifically respond to this point, but said it was working to promote the well-being of its citizens. The minister of presidential affairs did not respond to a request for comment. (Reporting by Aaron Ross; Editing by Ammu Kannampilly, Aidan Lewis and Ros Russell )


China fires water cannon at Philippine ships in South China Sea

China fires water cannon at Philippine ships in South China Sea
Updated 35 min 45 sec ago

China fires water cannon at Philippine ships in South China Sea

China fires water cannon at Philippine ships in South China Sea
  • Confrontation comes a week after China approved plans to turn Scarborough Shoal into a national nature reserve
  • Simmering tension over the shoal has led to diplomatic rows in recent years

BEIJING: China’s Coast Guard fired water cannon on Tuesday at Philippine ships near the disputed Scarborough Shoal in the South China Sea, accusing Manila of an “illegal” intrusion and the ramming of one of its vessels.
The confrontation comes a week after China approved plans to turn the shoal into a national nature reserve, a move that defense analysts have warned would test Manila’s response over the 150 square-kilometer triangular chain of reefs and rocks.
Simmering tension over the shoal has led to diplomatic rows in recent years, but no incidents have escalated into armed conflict at the site.
Both sides accuse each other of provocations and trespassing in incidents featuring use of water cannon, boat-ramming and maneuvers by China’s Coast Guard the Philippines regards as dangerously close, as well as jets shadowing Philippine aircraft there.
Tuesday’s encounter involved more than 10 Philippine ships, said Gan Yu, a spokesperson for China’s Coast Guard, accusing the vessels of having “illegally invaded China’s territorial waters of the Scarborough Shoal from different directions.”
In particular, he faulted Philippine Coast Guard vessel 3014, saying in a statement it had “disregarded solemn warnings from the Chinese side and deliberately rammed a Chinese coast guard vessel.”
He added, “The China coast guard lawfully implemented control measures against the Philippine ships.”
These included measures such as verbal warnings, route restrictions and water cannon spraying, Gan added.
A spokesperson for the Philippine Maritime Council said the Chinese coast guard’s statement contained “no truth,” dismissing it as “another case of Chinese disinformation and propaganda.”
Analysts have said Beijing’s plan to categorize the shoal as a nature reserve amounted to trying to take the moral high ground in the dispute over the atoll, known as Huangyan Island in China and Panatag Shoal in the Philippines.
The dispute is part of a contest over sovereignty and fishing access in the South China Sea, a conduit for more than $3 trillion of annual ship-borne commerce.
China claims almost the entire South China Sea, overlapping the exclusive economic zones of Brunei, Indonesia, Malaysia, the Philippines and Vietnam. Unresolved disputes have festered for years over ownership of various islands and features.
In 2016, the Permanent Court of Arbitration in the Hague ruled that China’s sweeping claims in the region were not supported by international law, a decision that Beijing rejects.


Floods devastate India’s breadbasket of Punjab

Floods devastate India’s breadbasket of Punjab
Updated 46 min 19 sec ago

Floods devastate India’s breadbasket of Punjab

Floods devastate India’s breadbasket of Punjab
  • In Punjab, often dubbed the country’s granary, the damage is unprecedented: floods have swallowed farmlands almost the size of London and New York City combined
  • India’s agriculture minister said in a recent visit to the state that “the crops have been destroyed and ruined,” and Punjab’s chief minister called the deluge “one of the worst flood disasters in decades”

GURDASPUR: The fields are full but the paddy brown and wilted, and the air thick with the stench of rotting crops and livestock — the aftermath of record monsoon rains that have devastated India’s breadbasket.
In Punjab, often dubbed the country’s granary, the damage is unprecedented: floods have swallowed farmlands almost the size of London and New York City combined.
India’s agriculture minister said in a recent visit to the state that “the crops have been destroyed and ruined,” and Punjab’s chief minister called the deluge “one of the worst flood disasters in decades.”
Old-timers agree.
“The last time we saw such an all-consuming flood was in 1988,” said 70-year-old Balkar Singh in the village of Shehzada, 30 kilometers (19 miles) north of the holy Sikh city of Amritsar.
The gushing waters have reduced Singh’s paddy field to marshland and opened ominous cracks in the walls of his house.
Floods and landslides are common during the June-September monsoon season on the subcontinent, but experts say climate change, coupled with poorly planned development, is increasing their frequency, severity and impact.
Punjab saw rainfall surge by almost two-thirds compared with the average rate for August, according to the national weather department, killing at least 52 people and affecting over 400,000.
Prime Minister Narendra Modi has announced a relief package worth around $180 million for Punjab.

- ‘10 feet high’ -

The village of Toor, sandwiched between the Ravi river and Pakistan, is in tatters — strewn with collapsing crops, livestock carcasses and destroyed homes.
“The water came past midnight on August 26,” said farm worker Surjan Lal. “It rose up to at least 10 feet (three meters) in a matter of minutes.”
Lal said the village in Punjab’s worst-affected Gurdaspur district was marooned for nearly a week.
“We were all on rooftops,” he said. “We could do nothing as the water carried away everything from our animals and beds.”
In adjacent Lassia, the last Indian village before the frontier, farmer Rakesh Kumar counted his losses.
“In addition to the land I own, I had taken some more on lease this year,” said the 37-year-old. “All my investment has just gone down the drain.”
To make things worse, Kumar said, the future looked bleak.
He said he feared his fields would not be ready in time to sow wheat, the winter crop of choice in Punjab.
“All the muck has to first dry up and only then can the big machines clear up the silt,” he said.
Even at the best of times, bringing heavy earth-movers into the area is a tall order, as a pontoon bridge connecting it to the mainland only operates in the lean months.
For landless laborers like 50-year-old Mandeep Kaur, the uncertainty is even greater.
“We used to earn a living by working in the big landlords’ fields but now they are all gone,” said Kaur.
Her house was washed away by the water, forcing her to sleep in the courtyard under a tarpaulin sheet — an arrangement fraught with danger as snakes slither all over the damp land.

- Basmati blues -

Punjab is the largest supplier of rice and wheat to India’s food security program, which provides subsidised grain to more than 800 million people.
Analysts say this year’s losses are unlikely to threaten domestic supplies thanks to large buffer stocks, but exports of premium basmati rice are expected to suffer.
“The main effect will be on basmati rice production, prices and exports because of lower output in Indian and Pakistan Punjab,” said Avinash Kishore of the International Food Policy Research Institute in New Delhi.
Punishing US tariffs have already made Indian basmati less competitive, and the floods risk worsening that squeeze.
The road to recovery for Punjab’s embattled farmers, analysts say, will be particularly steep because the state opted out of the federal government’s insurance scheme, citing high costs and a low-risk profile because of its robust irrigation network.
Singh, the septuagenarian farmer, said the water on his farm was “still knee-deep.”
“I don’t know what the future holds for us,” he said.