A new bill introduced by the US government, called the “One Big Beautiful Bill”, is facing serious criticism across the world. This bill, which proposes a remittance tax, has triggered panic among millions of NRIs (Non-Resident Indians) and foreign workers in the US. Experts believe that if this bill becomes law, it could have a major financial impact on countries like India, which receive a large share of global remittances.
The bill, supported by former President Donald Trump, aims to impose a 3.5% tax on all money sent from the US to other countries. Initially, the proposal was to charge 5%, but it was later reduced to 3.5%. This tax would apply to all foreign nationals living in the US, including those with Green Cards. The goal is to place the tax burden on foreign residents who send money to their home countries, a move that is being seen as both economically aggressive and politically controversial.
India is the world’s largest recipient of remittances. According to RBI data, India received $129 billion in remittances in 2024, a figure that is equal to or more than the entire annual budget of countries like Pakistan and Bangladesh. More than half of these remittances come from developed nations, especially the United States, where Indian professionals are dominant in IT, healthcare, finance, and engineering sectors. In fact, 78% of Indians in the US hold high-paying jobs, which has significantly increased the flow of money back to India.
In 2010, remittances from the US to India totalled $55.6 billion, increasing to $118.7 billion by 2023-24. Over the past 10 years, India has received around $1 trillion in remittances. This money plays a big role in the economies of several Indian states like Andhra Pradesh, Kerala, Maharashtra, Uttar Pradesh, and Bihar, where many families depend on it for survival.
India’s migration numbers have been growing fast. From 6.6 million migrants in 1990, the number has risen to 18 million in 2024, with a large share in Gulf countries and the United States. If this new US bill becomes law, it could lead to a significant decline in remittances, impacting millions of Indian households.
The “One Big Beautiful Bill” has already passed in the US House of Representatives with a very close vote count of 215–214. It still needs to be approved by the US Senate. President Donald Trump has announced that he wants this bill to become law by July 4th.
