Half of Overseas Indians Live in Just 10 Countries Worldwide

(INDIA) India’s global community has reached a new peak, with 34.3 million Overseas Indians living outside the country as of 2025, and almost half clustered in just ten destinations. This concentration—led by the United States, the United Arab Emirates, and Saudi Arabia—continues to shape India’s economy and foreign policy, most visibly through record remittances of $135.46 billion in 2024–25, a 14% jump year over year.

Together, these flows, combined with steady streams of skilled and temporary migration, keep India at the center of worldwide mobility debates while pressing New Delhi to update laws that govern migration, diaspora services, and rights for Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs). According to analysis by VisaVerge.com, the scale and reach of India’s diaspora now touch almost every part of the world, yet policy support—especially on data, legal safeguards, and reintegration for returnees—lags the reality on the ground.

Diaspora size, composition, and drivers

• Total Overseas Indians: 34.3 million (2025).
• Indian-born migrants: 18.5 million worldwide in 2024 (~6% of all international migrants).
• The broader diaspora includes second- and third-generation people of Indian origin who often retain close ties through family, culture, education, and business.

Two major drivers shape today’s flows:
1. Skilled migration — students and professionals heading to the West (notably the United States 🇺🇸, Canada 🇨🇦, and the United Kingdom).
2. Temporary labor migration — the Gulf as a backbone for sectors like construction, services, logistics, and healthcare.

These create a split diaspora:
– One focused on long-term settlement and entrepreneurship.
– Another centered on wage work and savings sent home.

Top destination countries

The ten countries hosting the largest Indian-origin populations include:
– United States: about 5.16–5.69 million
– United Arab Emirates: about 3.89–4.43 million
– Saudi Arabia: 2.59–2.75 million
– Malaysia: 2.93 million
– Canada: 3.61 million
– Sri Lanka: 1.61 million
– South Africa: 1.39 million
– United Kingdom: 1.34 million
– Kuwait: 1.01 million
– Singapore: 0.46 million

The ranges for the US and UAE reflect differing data classifications (Indian-born vs. all people of Indian origin). Overall, almost half the world’s Indian-origin population is concentrated in these ten hubs.

Long-settled communities and historical ties

Smaller but historically significant communities include:
– Mauritius: 0.89 million
– Trinidad & Tobago: 0.54 million
– Guyana: 0.32 million
– Suriname: 0.18 million
– Fiji: 0.31 million
– Réunion: 0.3 million

These populations trace back to plantation-era migration and sustain cultural and diplomatic ties across the Indian Ocean, Caribbean, and Pacific.

Economic impact: remittances

• Remittances in 2024–25: $135.46 billion (official data) — a 14% year-over-year increase.
• Effects of remittances:
  • Support household consumption, education, small business investment, and housing.
  • Strengthen foreign exchange buffers and reduce the need for external borrowing.
  • Smooth shocks during economic downturns.

Contributors to the rise include lower-cost digital transfers and enhanced anti-fraud measures. Policymakers track remittances alongside trade as an indicator of external-sector health.

Return migration and reintegration

• Returnees (2019–2024): 595,101 Indian emigrants returned.
• Causes: pandemic job losses, shifting labor markets abroad, and tighter immigration rules.
• Reintegration challenges:
  • Skill mismatches for workers trained abroad (especially in the Gulf).
  • Wage compression and slower career growth for returning professionals.
• State responses:
  • Kerala stands out with comprehensive programs: job placement, small business assistance, and certified skills training.
  • Migrant advocates call for similar frameworks across other states.

Legal and policy landscape

Key points:
– India does not allow dual citizenship. Taking another passport results in automatic loss of Indian citizenship.
– The Overseas Citizen of India (OCI) scheme provides a lifelong visa and some benefits but not political rights or full citizen parity.
– A 2025 Lok Sabha Committee Report recommends:
– Clearer statutory guarantees for OCI/PIO rights and services.
– Better legal protection for migrants.
– A unified diaspora database for planning and crisis response.
– Modernization of the Emigration Act of 1983 to include contract oversight, ethical recruitment, digital registration, and fair dispute resolution.

Proposed legislative changes (high-level)

• Verified job contracts before departure.
• Caps on recruitment fees.
• Transparent dispute processes and enforceable penalties.
• A single, accurate diaspora database to coordinate services and emergency response.

Voting rights and political participation

• NRI postal voting by ballot remains an unresolved reform.
• Current rules require NRIs to be physically present in their constituency to vote.
• Concerns delaying rollout: verification, chain of custody, and security.
• Observers believe secure postal or electronic processes are achievable with proper checks.

Diplomatic and consular coverage

• India operates 219 Missions and Posts worldwide, supported by 38 ICCR centres for arts, language, and cultural exchange.
• Coverage gaps: some major diaspora destinations (notably the United States) lack ICCR centres despite large diaspora populations.
• Common consular issues:
  • Processing delays during peak seasons.
  • Uneven clarity on OCI renewals when travellers obtain new passports.
  • Varying paperwork requirements between missions.

Official portals and directories:
– MEA homepage: https://mea.gov.in
– NRI/PIO/OCI Services: https://mea.gov.in/nri-and-pio-services.htm
– Indian Missions Worldwide: https://mea.gov.in/indian-missions-abroad.htm

Regional dynamics: Gulf vs West

Gulf corridor:
– UAE, Saudi Arabia, and Kuwait host well over 7.6 million Indians.
– Many households in Kerala, Telangana, Andhra Pradesh, Uttar Pradesh, and Bihar rely on Gulf earnings to lift family incomes.
– Trends: Gulf economies are diversifying into technology, tourism, and logistics, while also localizing workforces.
– Risks persist: contract disputes, wage delays, and passport retention.

North America and Europe:
– Dominated by skilled migration from education to permanent residence.
– Top destinations: United States, Canada, United Kingdom.
– Policy shifts (tighter rules on dependents, post-study work, sector caps) create uncertainty but long-term demand remains.

Remittance behavior by region

• Gulf-based workers often send a higher share of earnings back home (monthly or quarterly).
• Western migrants may remit less proportionally due to higher living costs and saving needs for local housing/education.
• Over time, diaspora remittances increasingly flow into formal investments and family businesses.
• Remittances are now estimated at more than 3% of India’s GDP.

Policy priorities and proposals

Top items under discussion in New Delhi:
– An updated Emigration Bill to protect low-wage workers and mandate verified contracts, caps on fees, and transparent grievance mechanisms.
– A unified diaspora database to harmonize data across agencies and improve emergency planning and service delivery.
– Clearer OCI policy guidance across Missions on documentation, children’s status, and renewal processes.
– Consideration of a Diaspora Protection Act to strengthen legal footing for NRIs and PIOs.
– Easier investment pathways for diaspora capital into priority sectors (renewables, health tech, education, logistics) via predictable tax treatment and faster approvals.
– Scaling successful state-level pilots (single-window systems) to the national level to attract diaspora-backed projects.

Cultural ties and soft power

• Cultural exchanges—festivals, film, food, and language schools—sustain engagement across generations.
• ICCR centres, community groups, and local associations help younger diasporas stay connected.
• University partnerships and school exchanges often grow out of diaspora networks, fueling research and start-up incubators.
• In crises (e.g., Covid-19), community associations and Missions coordinated evacuations, medical supplies, and support—showing the resilience of local networks.

“A strong network of local institutions and trusted groups is a form of resilience.”
This lesson from the pandemic underscores why local engagement matters.

The data challenge

• Different sources report different figures because they track varying groups: Indian-born migrants versus all people of Indian origin.
• Country classifications vary (e.g., the US counts naturalized Americans of Indian origin in some datasets; the UAE uses resident permit categories).
• A harmonized data model is needed to:
  • Map PIOs, NRIs, and Indian-born migrants consistently.
  • Preserve privacy while improving emergency planning and consular coverage.
  • Reduce uncertainty in forecasting remittances and student flows.

Practical needs for families, students, and returnees

Common information needs:
– Clear guidance on contracts, visa conditions, and migration costs.
– School-credit transfer rules for children who move back.
– Scholarship and post-study work advice for students.
– Job-matching and skills recognition for returnees.

A single, updated interface combining consular services, skills programs, and investment/tax guidance would reduce confusion. Start points include:
– MEA homepage: https://mea.gov.in
– NRI/PIO/OCI Services: https://mea.gov.in/nri-and-pio-services.htm
– Indian Missions directory: https://mea.gov.in/indian-missions-abroad.htm

Looking ahead: trends and measures of success

• Expected continuation of skilled migration to the West driven by demographic gaps and labor demand.
• Gulf demand will persist but the job mix may shift as host countries upgrade sectors and localize workforces.
• Policy success will be measured by:
  • Whether Overseas Indians feel protected, heard, and connected.
  • Whether remittances and investments flow through safe, low-cost channels.
  • Whether returnees receive fair opportunities to rebuild in India.
  • Whether Missions are equipped to serve communities where needs are highest.

Key takeaways

• Overseas Indians—34.3 million strong—remain a cornerstone of India’s economy and global standing.
• Almost half live in just ten countries, led by the United States, the UAE, and Saudi Arabia.
• Remittances of $135.46 billion in 2024–25 reflect the financial power of the diaspora.
• The human dimension—students, workers, entrepreneurs, and long-settled communities—is what gives these numbers meaning.
• If policy keeps pace with reality—through updated emigration law, clearer OCI rules, unified data, and better returnee support—the diaspora can become an even more connected, protected, and engaged force shaping India’s next chapter.