The government will consider policy changes while finalising the 11th Five-Year Plan to attract more foreign direct investment and remittances, Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Friday.
"In the course of the finalisation of the 11th Plan, if we find some areas to further improve remittances and attract more FDI, we will look into it," he said after releasing the Regional Poverty Profile 2005 prepared by SAARC Secretariat.
In the report, the SAARC Secretariat has estimated the receipts of remittances in 2004 at around 22 billion dollars against a mere 4.4 billion dollar FDI flow into the country.
Ahluwalia said there was no doubt the country was doing well on remittances as also FDI.
"Our position on the external account is good," he said.
Asked about the current FDI policies, Ahluwalia said: "The policies at the moment are good enough. But we would want the policies to help increase the revenues." Remittance has been an important source of foreign exchange supporting growth and has contributed positively to income, consumption and savings.
Nearly 25 million NRIs (Non Resident Indians) sent close to 22 billion dollars back home in 2004. This, together with FDI, provided an impetus to the economy and raised the GDP growth level to well above 8 per cent.
According to estimates, India has the largest share of remittances from a total of about 100 billion dollars. China and Mexico are close behind. In the SAARC region, India, Pakistan and Bangladesh were among the top recipients of remittances in 2004.