NRIs, the global citizens of the modern world, do a substantial job in creating a robust and a proficient image of our Motherland in the countries that they reside. They contribute to our economy in various ways; they generate earnings estimated at about $250 Billion. It is not only the quantum of money but rather the currency they brought in as. The remittances are in the form of dollars, substantially reducing any currency risks.
How NRIs help the economy?
A lesser known way how NRIs help the economy is found in the tourism sector. Plenty of them brings along with them their friends and colleagues residing overseas. They also pique people’s interest by reciting various age-old tales of our country.
Post the Liberalization policies that were introduced in the 1990s, a large number of NRIs invested in Indian economy having considered the potential for its growth. This has further helped the country to raise foreign currency funds and created various new opportunities for people living in the territory of India.
Investments by NRIs in India
RBI has directed numerous banks to engage NRI deposits and has provided many both long-term and short-term investment plan options for them. Other than this, they are even encouraged to establish some institutions in the country.
Several reports by the government also reveal that NRIs are one of the vital source of Direct Foreign Investment, Outsourcing (also referred to as market development), newer technologies flow into the nation, in addition to these, NRIs are also known to make political contributions and more substantial knowledge.