Millennium Post

NRIs should increase remittances: Assocham

Increasing internal demand and motivating expatriates to send home more remittances may solve the Indian economy’s problems due to a depreciating rupee, industry lobby Associated Chambers of Commerce and Industry of India (Assocham) said on Sunday.

‘At present, NRI deposits are between $52 and $55 billion, which needs to be pushed up to an ambitious level of $75-80 billion,’ said Assocham president Rajkumar Dhoot.

‘We will strongly recommend that high-level teams comprising of senior RBI officials, executive directors of banks and chairpersons and senior officials of the finance ministry do roadshows in areas such as the Middle East, South-East Asia and Europe where there is a concentration of Indian expatriates,’ he said.

According to a survey conducted by economists and bankers, he said, remittances from NRIs had to be mobilised like never before.

While a handful of banks have increased interest rates on NRI deposits, these seem to be piecemeal efforts, which need to be intensified, the survey said.

The rupee has touched an all-time low of moving closer to Rs 54 per dollar and the pressure on the Indian currency increases each time there is a percentage point drop in the BSE Sensex.

Dhoot said the NRIs must be given assurances that given the global uncertainties investing back home makes better business sense.

‘NRIs should invest in India not only because of the motherland connection but also because India has a market of 1.20 billion people which will continue to grow,’ he said.
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