US Nepali diaspora sends $1.28bn in remittances

The Nepali diaspora in the United States has grown significantly, with current estimates reaching between 185,000 to 215,000 individuals, according to a comprehensive new report titled ‘Nepali Migrant Dreams in the American Landscape: An Exploration of the Nepali Diaspora in the United States’. The report, launched by the Institute for Integrated Development Studies (IIDS) in collaboration with the Embassy of Nepal in Washington DC and The Asia Foundation, delves into the migration patterns, socio-economic integration, and the vital contributions of Nepali migrants to both the US and Nepal.

The findings reveal that the diaspora has experienced rapid growth over the past 12 years, with 68.3 percent of Nepalis in the US arriving post-2010. The 2020 US Census supports this, showing that approximately 208,000 Nepalis live across the US, with the largest concentrations in states such as Texas, California, Virginia, Maryland, and New York. Major urban hubs with dense Nepali populations include Dallas-Fort Worth, Richmond, New York, Baltimore, and San Francisco. 

The report outlines that the primary motivations for migration include access to better educational opportunities (58 percent), improved living standards, and job prospects. Career advancement (42 percent) and higher quality of life (38 percent) also rank highly among the reasons for migration. Additionally, economic factors such as better employment opportunities abroad (19 percent) and limited job prospects in Nepal (25 percent) play a significant role, along with the country’s unpredictable political climate (26 percent).

Over the period from 2012 to 2021, Nepal had the second-highest number of applicants (5.3m) to the US Diversity Visa (DV) Program among Asian countries, reflecting the strong desire for migration. The report also reveals that the majority of Nepali migrants spend below $10,000 on migration expenses, with a substantial proportion (spending $50,000 or more) representing a large financial commitment. Last year alone, over 112,000 Nepali students received No Objection Certificates (NOCs) for overseas study, meaning more than 300 Nepali students leave the country every day for educational opportunities. The financial outflow due to this migration reached Rs 125bn, accounting for 78 percent of Nepal’s total export earnings in the past year.

The diaspora’s financial contributions extend beyond remittances. The report estimates that the total remittance sent from the US to Nepal in 2023 was around $1.28bn, making up 11.6 percent of Nepal’s total remittance inflow. The average annual remittance sent from the US is $8,633.04, which significantly outpaces remittance per capita from other major remittance-sending countries like Qatar, Malaysia, the UAE, and Saudi Arabia.

Additionally, 10 percent of the Nepali diaspora has made financial investments in Nepal, particularly in real estate, land, hydroelectricity, and education sectors. This highlights a sustained bond with their home country, driven by both economic interests and a desire to contribute to Nepal’s development. Engagement with Nepal’s socio-economic development is also evident through philanthropic donations, with 57.8 percent of the diaspora donating to charities and organizations in Nepal, particularly in the areas of education (26.34 percent) and disaster relief (21.89 percent).

While the Nepali diaspora demonstrates a high level of socio-economic success in the US, with higher median incomes than the national average ($45,500 vs. $42,200), the report identifies certain disparities within the community. Despite strong economic engagement, the diaspora faces a poverty rate (11.98 percent) that slightly exceeds the US average (11.5 percent), and homeownership rates are lower (49 percent) compared to the US average (65.2 percent). However, Nepali diaspora households tend to have larger household sizes, indicating a distinct living arrangement compared to other US residents.

The report also highlights a gender income gap, with men in the diaspora generally earning significantly more than women across various sectors. For example, men working in the ‘Legal, Public Service, and Consulting’ sector earn a median income of $95,000, more than double the $45,000 earned by women in the same field. Similar disparities are noted in the technology and healthcare sectors, where male workers earn $80,000, compared to $50,000 for women in technology, and $45,000 for women in healthcare.