The pandemic resulted in an increase in unemployment in West Asian regions, but employment conditions remained stable in the US. As a result, the US could accelerate the Indian economy through remittances during the pandemic

Early Covid-19 shutdowns resulted in the loss of contact-intensive and outdoor-oriented jobs in West Asia. It led to a contraction in inflows from the traditional Gulf base and an increase in remittances from the Indian diaspora in the US during the Covid months. The US plays a crucial role in foreign exchange through investments, trades, and also remittances. The composition of remittances has evolved since Covid, which has expanded India’s economic ties with the US.

According to research by central bank economists, the US overtook the UAE as the biggest remittance source nation in 2020–21, accounting for 23 per cent of all transactions. The study was conducted by the Department of Economic and Policy Research of the Reserve Bank of India. It was discovered that the findings corroborate the World Bank report's assertion that economic growth in the United States is a key driver of India's remittance expansion.

The remittance flow is dependent on the jobs and economic conditions of the host countries. Due to the pandemic and a slowdown in production, remittances from Gulf countries were almost nil, and many people became unemployed. However, in the US, the employment situation was different from India as most of the workers were employed in IT and other white-collar jobs. Therefore, even with the pandemic restrictions, their jobs remained secure. Additionally, the US government provided financial transfers to its individual residents, which made it simpler for them to support their family members back home.

It was anticipated that India will be the worst affected nation, with the economic recession and the decline in oil prices impacting the diaspora in the host nations. The predicted decline was 23 per cent, which failed as India continued to be the biggest recipient, taking in 12 per cent of all international remittances with a marginal fall of 0.2 per cent in 2020 and an increase of 8 per cent in 2021. As a result, it is possible to conclude that countries experiencing severe Covid-19 effects received more aid for family maintenance from the overseas diaspora. This finding supports the altruistic motive of remittances. Above all, the Indian diaspora in the United States provided the most significant financial assistance to India through remittances.