NRIs send home a whopping US$ 21 billion
June 13, 2006
New Delhi: For Indians, the umbilical cord with home is never severed. India is the largest recipient of remittances by overseas workers, estimated at US$ 21 billion — up from almost 150 per cent since 1995, says a study by investment bankers J P Morgan.
A related survey in the San Jose Mercury News reported that 6 of the 100 best paid executives in Silicon Valley were Indians. While Shantanu Narayen, Adobe Systems president and COO, ranked 31, Sanjay Mehrotra, EVP and COO of SanDisk, was 39.
Six of the 100 best paid executives in Silicon Valley are Indians, according to a survey in the San Jose Mercury News.
Ranked at 61 is Rajiv Dutta of eBay and at 71 is Vyomesh Joshi, HP’s EVP. Others on the list include Abhijit Talwarkar, LSI Logic CEO, at 89 and Kamal Agarwal of National Semiconductors at 99.
Experts point out that softer immigration laws in the US and the search for better economic opportunities have fuelled a surge in overseas migration of Indians.
Unlike previous phases of migration, better educated Indians went abroad in the last decade, especially to US, UK and Canada. The JP Morgan study reaffirms RBI figures released recently that found remittances were double the amount of net foreign institutional investor inflows and one-fourth of the merchandise export earnings of the country.
The study reports that stock of deposits by NRIs amounts to around $32 billion or 23% of foreign exchange reserves. Portfolio and real estate investment has been largely concentrated in the IT space.
While the report notes that diaspora can act as a ‘‘powerful catalyst’’, even helping India realise and perhaps exceed its aspiration of 10% annual GDP growth, the onus for better capitalisation lies on the Indian government. It is no wonder that the government is keen to recognise and pander to the interests of the growing diaspora. Overseas Indian affairs minister Vyalar Ravi has already mooted a plan to set up a ‘welfare fund’ for the overseas workers.
The ministry plans to use this fund for compulsory health insurance of the overseas worker and his family and extend other facilities.
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