Remittances by Indian expatriates rose by over $1 billion to $27.51 billion (around Rs 1,22,420 crore) during April-September 2009, unfazed by the global financial meltdown, a RBI survey has said.
The remittances increased from $26.37 billion during the same period in the previous year, as India provided much better returns.
“... Inward remittances in India have not been impacted significantly by the global economic crisis,” RBI said in its latest monthly bulletin.
It further said that the rise in remittances may be attributed to a number of factors, including depreciation of rupee resulting in the rise in inflows through rupee denominated NRI accounts to take advantage of the depreciation and hike in interest rate ceilings on NRI deposits since September 2008.
RBI said that it was feared that the global recession could impact migrant workers more severely.
"Even if there is no lay-off, workers would often have to accept lower wages as employers worldwide are seeking to cut costs in an attempt to cope with the financial crisis," it said.
The survey, which was conducted in November 2009, said that North America continues to be the most important source region of remittances to India despite its share in total remittances falling to 38 per cent (44 per cent during the 2006 Survey).
A large proportion of migrants to North America (US and Canada) work in software and related areas which have relatively higher average earning levels.
The Gulf region accounts for an average of 27 per cent of total remittance inflows to India.