Group says more remittances to India are needed
While the global effects of the Great Recession have been retreating, many nations are still encountering financial issues. This is especially true in India, as the value of the rupee is depreciating, fewer people are investing and debt levels are rising.
But according to the Associated Chambers of Commerce and Industry of India, the nation's financial woes may be improved by encouraging Indian expatriates to increase their remittance flows to their native land.
Speaking on behalf of the consumer advocacy group, Assocham President Rajkumar Dhoot said the country's financial leaders should be actively urging Indian natives to send money home to their families, as the country's fiscal health depends on it.
Citing a recent survey, Dhoot says economists and bankers are in agreement that remittances from non-resident Indians need to pick up significantly to make any headway in fixing the country's bleak financial state. Assocham strongly recommends teams comprising of senior officials and bank executives be deployed throughout the world to wherever there are high concentrations of Indian expatriates. However, in order for them to invest in India, they need to be reminded of the benefits that may result.
"They must be given assurances, that given the global uncertainties, investing for them back home makes better business sense," said Dhoot. "The NRIs should invest in India not only because of the motherland connection but also because India has a market of 1.20 billion people which will continue to grow."
However, while this may may put a dent in India's debt crisis, Dhoot advised that more lasting solutions are necessary if the country is going to solve its money problems.
"We cannot afford the confidence to further decline," said Dhoot. "We need fast measures like somehow increasing the dollar inflows so that the pressure on the rupee is halted."
He added that thus far, NRI deposits average around $52 to $55 billion per year. To make headway, they ought to be around $75 to $80 billion.
Other recommendations noted by economists that could improve India's economy would be to develop different strategies that could increase consumer confidence and demand.