According to a study by investment bankers, J.P. Morgan, India is the largest recipient of remittances by overseas workers, estimated at $21 billion -- up from almost 150% since 1995. The JP Morgan study reaffirms Reserve Bank of Indian figures released recently that found remittances were double the amount of net foreign institutional investor inflows and one-fourth of the merchandise export earnings of the country.
The study reports that stock of deposits by NRIs amounts to around $32 billion or 23% of foreign exchange reserves. Portfolio and real estate investment has been largely concentrated in the IT space.
While the report notes that the Indian Diaspora can act as a "powerful catalyst", even helping India realize and perhaps exceed its aspiration of 10% annual GDP growth, the onus for better capitalization lies on the Indian government.
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