NRI remittance up 68%

Remittance from the non-resident Indians increased by around 68 per cent in the last two years. According to the Ministry of Overseas Indian Affairs, Pravasi Indians transferred $42.6 billion in 2007-08 as against $25 billion in 2005-06.

Measures by the Reserve Bank of India and the fall in rupee encouraged inflow of capital into the country. NRIs increased funds in various RBI schemes, pouring $513 million in September 2008 alone, the highest since December 2006.

On the FDI front, the inflow of funds crossed $25 billion in 2007-08, and the trend continued in the first quarter of this year, when it touched $10 billion, despite the global financial turmoil. Sectors which attracted investment include manufacturing, telecom, construction, real estate and energy.

Indian investments overseas too kept pace with inward FDI. The investment increased 30 per cent to $17.9 billion in 2007-08 from $13.5 billion in 2006-07.

According to Unctad’s World Investment Report 2007, India’s outward investment was the second highest after Brazil’s, going up four times over the previous year. A significant part of the funds went into acquisitions overseas, helping companies access markets. Indian companies completed 322 deals in developed economies as against 340 deals made my companies of developed economies into India.