Indian Immigrants in the U.S.: A Snapshot of Growth, Contributions, and Challenges

India, the world’s most populous nation, is also the largest source of migrants globally. As of 2023, over 2.9 million Indian immigrants lived in the United States, making it the second most popular destination for Indians after the United Arab Emirates. Indians accounted for 6 percent of the U.S.’s 47.8 million foreign-born residents, ranking as the second-largest immigrant group after Mexicans.

Rapid Growth and Changing Demographics

The Indian immigrant population in the U.S. has expanded dramatically since 1960, with the largest wave arriving between 2000 and 2023. On average, Indian immigrants exhibit high educational attainment and income levels. Most possess a bachelor’s degree or higher, with median incomes more than double those of native-born Americans and other immigrant groups. Additionally, they are less likely to live in poverty. Indians also constitute one of the largest groups of international students in the U.S. and received nearly two-thirds of the H-1B visas for highly skilled workers in fiscal year (FY) 2023.

This upward mobility contrasts sharply with the early 20th century, when Indian migrants were predominantly low-skilled workers. The 1965 Immigration and Nationality Act, which abolished restrictive quotas, marked a turning point, allowing a surge of skilled professionals from India to enter the U.S.

Irregular Migration and Border Crossings

A noteworthy aspect of Indian immigration involves unauthorized entries. U.S. Customs and Border Protection (CBP) recorded nearly 97,000 irregular arrivals of Indian migrants in FY 2023, a number that dipped slightly to 90,000 in FY 2024. Although most encounters occur along the U.S.-Mexico border, nearly 44,000 Indian nationals were intercepted at the U.S.-Canada border during the same period.

Many of these migrants hail from northern India, facing unemployment or political issues, such as tensions surrounding the Sikh separatist movement in Punjab. To reach the U.S., migrants often navigate a complex network of transit countries, paying exorbitant fees to travel facilitators in a process dubbed “donkey flights.”

Geographic Distribution

In the U.S., Indian immigrants predominantly reside in California, Texas, New Jersey, Illinois, and New York, which collectively house over half of the population. Major metropolitan areas like New York City, Chicago, San Francisco, Dallas, and San Jose account for more than a third of Indian immigrants. Notably, Indian migrants form significant portions of local populations, such as 7 percent in the San Jose metro area.

Language and English Proficiency

Indian immigrants are generally more proficient in English compared to other foreign-born groups. In 2023, only 21 percent reported limited English proficiency, compared to 47 percent of all immigrants. However, just 12 percent spoke only English at home. Other commonly spoken languages include Hindi, Telugu, Gujarati, Tamil, and Punjabi.

Age, Education, and Employment

Indian immigrants are younger than the overall foreign-born population, with a median age of 42 years in 2023. They are highly educated: 81 percent of adults aged 25 and older held at least a bachelor’s degree, significantly surpassing the 35 percent for all immigrants and 36 percent for U.S.-born adults. Almost half (49 percent) of Indian immigrants had advanced degrees, compared to 16 percent of all immigrants and 14 percent of native-born Americans.

Indian nationals were prominent in higher education, with 268,900 students enrolled in U.S. institutions during the 2022-23 academic year, representing 25 percent of all international students. Additionally, Indians were the primary recipients of H-1B visas, making up 72 percent of approvals in FY 2023.

Labor force participation among Indian immigrants was notably high at 74 percent in 2023, compared to 63 percent for U.S.-born individuals. Most worked in management, business, science, and arts occupations, reflecting their strong educational background.

Income and Poverty Levels

Indian immigrants enjoy higher incomes than their native-born and foreign-born counterparts. In 2023, households led by Indian immigrants reported a median income of $166,200, significantly exceeding the $78,700 median for immigrant households and $77,600 for U.S.-born households. Poverty rates were also lower, with just 6 percent of Indian immigrants living below the poverty line, compared to 14 percent for all immigrants and 12 percent for the native-born population.

Immigration Pathways and Naturalization

While Indians are slightly less likely to be naturalized citizens than other immigrant groups, they still constitute the second-largest group to naturalize annually. In FY 2023, 7 percent of all naturalized citizens were Indian. Most Indians arriving in the U.S. after 2010 came through family-sponsored or employment-based pathways, with the latter accounting for 37 percent of green cards issued to Indians that year.

The Migration Policy Institute estimates 375,000 unauthorized Indian immigrants lived in the U.S. as of mid-2022, ranking India fifth among countries of origin for undocumented migrants. However, participation in programs like Deferred Action for Childhood Arrivals (DACA) remains minimal, with fewer than 1,700 Indian participants.

Health Insurance and Coverage

Indian immigrants have some of the highest rates of health insurance coverage among immigrant groups. In 2023, only 4 percent were uninsured, compared to 18 percent of all immigrants and 6 percent of the native-born population. This high coverage reflects their employment in sectors offering comprehensive health benefits.

The Indian Diaspora

The broader Indian diaspora in the U.S. numbered approximately 5.2 million as of 2022, including both Indian-born residents and those of Indian ancestry. Among them, 55 percent were born in India, while the rest were U.S.-born or hailed from other countries. This diaspora is the tenth largest in the U.S.

Global Influence and Remittances

Globally, India remains the largest recipient of remittances, receiving $119.5 billion in 2023, more than double the amount sent to Mexico, the second-highest recipient. These remittances accounted for 3.4 percent of India’s GDP and have surged by 120 percent since 2010.

The United States is the second-largest destination for Indian migrants globally, following the UAE and ahead of Saudi Arabia. Together, these countries host millions of Indians who contribute significantly to their host economies while maintaining strong ties to India.