With the global financial crisis deepening and migrant workers losing jobs,remittances from Non-Resident Indians (NRIs) could decline by 20 per cent this fiscal,said a Planning Commission report,which was submitted to Prime Minister Manmohan Singh.
Total foreign inflows — investment and private transfers,can be around 65 billion dollars compared to 81 billion dollars in 2007-08,implying a fall of 20 per cent,the report said.
However,it projected that foreign inflows could surge to 90 billion dollars on account of one time increase in private transfers in the likelihood of Indian workers abroad deciding to bring home their accumulated savings on losing jobs.
“…as they (Indian workers abroad) return to India,they may bring back their accumulated savings and a one time increase may take place. During 2009-10,private transfers can be between 35 billion dollars and 50 billion dollars,” the plan panel report said.
Private transfers from abroad increased to 25.76 billion dollars during April-September 2008 as compared to 17.46 billion dollars in April-September 2007,the report said pointing out that this could be an outcome of devaluation of the dollar-rupee exchange rate.
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