The world is burning every day in the fire of war. Be it the threat of West Asia or the terrible devastation of Russia and Ukraine. But now amidst these great crises, India has launched such an economic Brahmastra which has surprised the whole world.
In fact, today India is not just a spectator but is in the role of a world friend. On one hand, Prime Minister Narendra Modi gives the message of peace. On the other hand, our non-resident Indians are strengthening the foundation of the country with their hard work. This is why the latest report of Morgan Stanley is testifying to this growing credibility of India. Indian expatriates have created a new record in terms of sending money home from abroad. Remittances received by India, i.e. money sent by migrants, are estimated to reach Rs 138 billion. This is 15% more than last year. This huge amount of money alone takes care of 40 to 45% of our trade deficit.
Half of what India buys from outside is paid for by our brave soldiers sitting abroad or you can call them workers. However, the war between America, Israel and Iran is not limited to the borders only. There seems to be a threat to the employment of millions of Indians working in GCC countries i.e. UAE, Saudi Arabia, Qatar. Sectors like tourism, logistics and construction are showing sluggishness and there was a time when India was completely dependent on the Gulf countries. But now the game has changed. USA and developed countries now account for 42% of total remittances and Indians are now driving not just wages but the world’s big tech companies and economies. But this news is worrying for states like Kerala where 20% of remittances come directly from Gulf countries. If the war drags on, we will need a homecoming policy so that the returning skilled Indians can be employed in building the country.
However, according to the old survey of RBI on remittance, most of the total amount is used for family needs. Some of the money is also used for deposits and investments and one reason for the increase in remittances in this quarter is that due to festivals and weddings, NRIs are sending a lot of money to their home during this period. Well, the real strength of India is its military as well as its economic strength and this report of Morgan Stanley alerts us and also makes us proud.