Interesting article! Very relevant also , since around 20% of India s total foreign exchange reserves are derived from remittances.Remittances largely lead to increase in cash flow, hence result in an increased purchasing power among the population. At micro level,it boosts the family income,leads to better nutrition, higher spending on education and in general a better standard of living.
From a macro perspective, it helps in pushing up the GDP growth. Remittances are also very useful when a country faces macro economic shocks, natural disasters, like floods, earthquake etc, political upheaval, financial crisis etc.
Today's HT has an article on how since July 2023, India and UAE agreed to settle trade in rupees instead of Dollars.Some of the Russian oil imports too have been settled in rupees.To boost the rupee, s role in cross border payments, RBI has allowed many banks to settle trade in rupees with 18 countries since last year .
This is an outcome of available educational institutions in India and the talent, hardwork, dependability and determination of the NRI population who went abroad and earned a reputation for being reliable employees; that resulted in many NRI Heads of top notch companies, especially in the IT and related sectors. The further increase of the IIT and IIM institutions, along with other institutions for higher education has been justified as not only do they fulfill our domestic requirements but also are a profitable investment in the light of the figures mentioned in your article Anil. A morale boosting write up, very well presented. 👌
NRI remittances have indeed been a stable source of FX inflows to India over the years and this has increased over the years. in fact, Govt should launch focused support program for upskilling of workers who move to GCC as also for other markets like Israel, Japan etc. In fact, we should have dedicated schools for teaching language, social norms, how to conduct oneself in these countries as well as skill specific courses like for nursing, electrician, driver, plumber, painter , care takers, machine workers etc. This will increase their employability and also their incomes. With international e-rupee being available soon, sending remittances should be quite easy and more importantly cheap. As for white collar workers, Govt has nothing much to do except start foreign universities in India itself so that cost of education comes down without losing benefit of getting high quality education, But one must remember that over a longer period, we should expect these remittances to taper off, as Indian economy grows and next generation Indians will have no one to send money home!!
Dear Anil,
Interesting article! Very relevant also , since around 20% of India s total foreign exchange reserves are derived from remittances.Remittances largely lead to increase in cash flow, hence result in an increased purchasing power among the population. At micro level,it boosts the family income,leads to better nutrition, higher spending on education and in general a better standard of living.
From a macro perspective, it helps in pushing up the GDP growth. Remittances are also very useful when a country faces macro economic shocks, natural disasters, like floods, earthquake etc, political upheaval, financial crisis etc.
Today's HT has an article on how since July 2023, India and UAE agreed to settle trade in rupees instead of Dollars.Some of the Russian oil imports too have been settled in rupees.To boost the rupee, s role in cross border payments, RBI has allowed many banks to settle trade in rupees with 18 countries since last year .
This is an outcome of available educational institutions in India and the talent, hardwork, dependability and determination of the NRI population who went abroad and earned a reputation for being reliable employees; that resulted in many NRI Heads of top notch companies, especially in the IT and related sectors. The further increase of the IIT and IIM institutions, along with other institutions for higher education has been justified as not only do they fulfill our domestic requirements but also are a profitable investment in the light of the figures mentioned in your article Anil. A morale boosting write up, very well presented. 👌
NRI remittances have indeed been a stable source of FX inflows to India over the years and this has increased over the years. in fact, Govt should launch focused support program for upskilling of workers who move to GCC as also for other markets like Israel, Japan etc. In fact, we should have dedicated schools for teaching language, social norms, how to conduct oneself in these countries as well as skill specific courses like for nursing, electrician, driver, plumber, painter , care takers, machine workers etc. This will increase their employability and also their incomes. With international e-rupee being available soon, sending remittances should be quite easy and more importantly cheap. As for white collar workers, Govt has nothing much to do except start foreign universities in India itself so that cost of education comes down without losing benefit of getting high quality education, But one must remember that over a longer period, we should expect these remittances to taper off, as Indian economy grows and next generation Indians will have no one to send money home!!