The NRI Stimulus
Non-resident Indians have long bolstered the Indian economy by sending money home. Remittances accounted for about 2.8 per cent of India’s GDP last year. The World Bank’s annual ‘Migration and Development Brief’ earlier this month reported that for “the first time in recent history, remittance flows to developing countries registered a decline for two successive years”. India, the world’s largest receiver of monies from citizens and immigrants abroad, registered a nearly 9 per cent slowdown. Much of the reason is attributed to weak growth and low oil prices, which have had a calming effect on the Gulf economies, home to so many Indian workers. The good news is remittances are expected to bounce back in 2017, up 3.3 per cent to $444 billion.