Remittances set to rise
A large section of Indians who receive remittances from across the globe would have reason to cheer the falling rupee.business Updated: Dec 13, 2011 20:51 IST
A large section of Indians who receive remittances from across the globe would have reason to cheer the falling rupee.
Analysts said Indians living abroad could decide to hike the quantum of money they repatriate back home to cash in on the weak domestic currency.
India is the largest recipient of remittances in the world, followed by China, Mexico and Philippines, and receipts have risen steadily in the last few years.
In 2010, India received $55 billion. In 2011 this could hit $58 billion, the World Bank has said.
“India’s greatest strength is its labour force and the rise in remittance would be resilient to any shock,” said Dipak Dasgupta, principal economic adviser to the finance ministry.
There was a slight dip in remittances from 2008 to 2009, though things bounced back in 2010. Kerala and Punjab topped the list. However, there has been a change in the pattern of job-related emigration out of India, with Bihar, Uttar Pradesh, West Bengal and north eastern states attracting job seekers abroad and creating new sources of remittances into the country.
“We would see an increase in remittances in the coming months,” Rajiv Kumar, secretary general, Federation of Indian Chambers of Commerce and Industry (FICCI) said.