According to the Ministry of Overseas Indian Affairs (MOIA), millions of Indians settled outside of India, not only generate earnings estimated to be around $250 Million, but they also actively engage in raising the Indian Economy. One of the most significant methods is sending remittance, which added up to $70 Million last year, especially in states like Punjab, Kerala, Karnataka etc. It also formed about 3%- 4% of the Gross Domestic Product (GDP) and helped in India’s balance of payment. India boasts of being the leading receiver of remittances and together with the FDI; the GDP was raised well above 8%. Also, since it is in the form of ‘Dollars’, it substantially reduces India’s currency risks. When in 1998-2000 the Clinton Administration had imposed economic sanctions, after the nuclear test, it was inward remittances, that kept our economy afloat.
This money is usually consumed in real estate, tourism, vehicle purchases etc., whereas others may prefer to deposit them in banks, indirectly allowing the banks to invest their money for them. The Reserve Bank of India directed the Indian banks to encourage NRI deposits on the basis of long or short-term investment plans for them. NRI’s also finance educational institutions or businesses, which again adds to the economy’s sectors. Reports suggest that these NRI’s are a major source of Foreign Direct Investment, Market Development (Outsourcing) and technology transfer, that boost the assets of the fiscal system, every day.
The Liberalisation Policies introduced in 1991 also intrigued a lot of Non- Residents to invest in the newly growing, full of potential economies, and that money allowed the government to develop a stronger economic foundation and policy. Relationships between the states are also rekindled by the NRI’s, and this also helps in carving out the foreign policy.
Statistics suggest that a lot of Indians go abroad to get an education or job, and may return upon earning some money. Therefore, in the longer run, when these individuals come back to India, their skills and expertise can be incorporated in the already existing economic scenario, and who knows hat fruit that will bear.
The future of this nation seems to be in good light if proper infrastructure is built, that can push economic development in India to its limits.