Slowdown unlikely to affect remittances to India

The slowdown in global economy is unlikely to affect remittances to India and will have limited impact on the country's growth prospects, a top economist said here.

"The global economic slowdown has limited impact on remittances to India, which is estimated at three per cent of India's GDP," Washington-based Global Financial Integrity Lead Economist Dev Kumar Kar said.

Speaking on 'Impact of Financial Crisis on Global Business,' Kar said, "India has a highly resilient economy and the global slowdown will have limited impact on India's growth prospect. The economy is forecast to grow at 6.7 per cent in FY 09 and around 6 per cent in FY10."

Large part of Indian workers resposible for sending remittances are professionals working in developed countries. Over the years, India's exports in different sectors also contributed to foreign exchange earnings.

As per the World Bank estimates, remittances across the globe are expected to fall by 5-8 per cent in 2009.

Commenting on India's move towards full convertibility, Kar said, the International Monetary Fund (IMF) was advocating for full convertibility till the Asian financial crisis.