India world's largest remittance recipient
India has now captured one-tenth of global remittance flows. An estimated $27.1 bn was remitted to India in 2006-07. NRIs: Away but united | Protection against frauds
By Himanshi Dhawan, TNN |
NEW DELHI: For Indians, the umbilical cord is never severed. India has now captured one-tenth of global remittance flows, making it the world���s largest single recipient. An estimated $27.1 billion was remitted to India in 2006-2007.
The Indian diaspora is estimated at 20 million. Migrant remittances have recently surged to the forefront of development agendas worldwide but the growth in India has been dramatic.Total remittances has grown steadily over the past 15 years, and dramatically in the past 10, skyrocketing from $2.1 billion in 1990-1991 to $27.1 billion in 2006-2007.
According to policy experts, factors responsible for the growth in remittances include the diminishing role of unofficial channels, shifting emigration patterns to high-skilled technology jobs, greater competition in the money transfer market and the strength of the Indian economy.
The top 10 destination countries for Indians include the UAE, Saudi Arabia, US, Bangladesh, Nepal, UK, Sri Lanka, Canada, Kuwait and Oman. Experts point out that softer immigration laws in the US and the search for better economic opportunities fuelled a surge in the overseas migration of Indians. Unlike previous phases of migration, emigration sent better educated Indians in the last decade especially to the US, UK and Canada.
A recent JP Morgan study said that deposits by non-resident Indians (NRIs) amounted to around $32 billion or 23% of foreign exchange reserves. Portfolio and real estate investment has been largely concentrated in the IT space. While the report noted that the diaspora could act as a ���powerful catalyst���, even helping India realise and perhaps exceed its aspiration of 10% annual growth, the onus for better capitalisation lies on the Indian government.
It is no wonder that the government is keen to recognize and pander to the interests of the growing diaspora. Overseas Indian affairs minister Vyalar Ravi has set up a ���welfare fund��� for overseas workers. The ministry plans to use this fund for compulsory health insurance of overseas workers and their families.
Courtesy: http://timesofindia.indiatimes.com
The Indian diaspora is estimated at 20 million. Migrant remittances have recently surged to the forefront of development agendas worldwide but the growth in India has been dramatic.Total remittances has grown steadily over the past 15 years, and dramatically in the past 10, skyrocketing from $2.1 billion in 1990-1991 to $27.1 billion in 2006-2007.
According to policy experts, factors responsible for the growth in remittances include the diminishing role of unofficial channels, shifting emigration patterns to high-skilled technology jobs, greater competition in the money transfer market and the strength of the Indian economy.
The top 10 destination countries for Indians include the UAE, Saudi Arabia, US, Bangladesh, Nepal, UK, Sri Lanka, Canada, Kuwait and Oman. Experts point out that softer immigration laws in the US and the search for better economic opportunities fuelled a surge in the overseas migration of Indians. Unlike previous phases of migration, emigration sent better educated Indians in the last decade especially to the US, UK and Canada.
A recent JP Morgan study said that deposits by non-resident Indians (NRIs) amounted to around $32 billion or 23% of foreign exchange reserves. Portfolio and real estate investment has been largely concentrated in the IT space. While the report noted that the diaspora could act as a ���powerful catalyst���, even helping India realise and perhaps exceed its aspiration of 10% annual growth, the onus for better capitalisation lies on the Indian government.
It is no wonder that the government is keen to recognize and pander to the interests of the growing diaspora. Overseas Indian affairs minister Vyalar Ravi has set up a ���welfare fund��� for overseas workers. The ministry plans to use this fund for compulsory health insurance of overseas workers and their families.
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Courtesy: http://timesofindia.indiatimes.com
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