The reason behind the strength of India’s economy is not just the factories, farms or startups, but also the crores of Indians living in different corners of the world. What these people earn while living abroad directly impacts the pockets of India. Sometimes the money was sent for family expenses, and sometimes the money came in the form of big investments – this is the reason why India today is able to maintain balance even amidst economic shocks. After all, how big is the role of NRIs in the country’s GDP? Let us find out.

Strong relationship between NRI and Indian economy

Non-Resident Indians i.e. NRIs are not only an emotional bond for India, but are also an economic force. Indians working abroad send large amounts of money to India every year. This is called remittance. This remittance strengthens India’s foreign exchange reserves and plays an important role in maintaining the economic stability of the country.

How does remittance strengthen GDP?

India is among those countries in the world which receive the highest remittances. According to various international reports, remittances sent by NRIs contribute about 3% of India’s GDP. This amount directly increases the income of the families. This increases expenditure in households, creates demand in the market and gives impetus to business.

Domestic consumption gets direct benefit

When money comes to India from abroad, it is used for education, health, building houses, buying cars and daily needs. Real estate, automobile, consumer goods and service sectors get direct benefits from this. This domestic consumption gives a strong base to GDP.

New opportunities are created through investment

NRIs are not limited to just sending money. They also invest in real estate, stock market, infrastructure and startups in India. Especially in the technology and startup sectors, the role of NRI investors has increased rapidly. This not only brings capital but also creates new jobs.

Role of NRI in employment generation

Many new companies and projects are started with the investment made by NRIs. This creates jobs in sectors like IT, service, manufacturing and construction. Many times, Indians who have gained experience abroad come back and start their own business, which increases employment opportunities at the local level.

Foreign exchange reserves and economic security

India’s foreign exchange reserves remain strong due to remittances and NRI investments. This reserve supports India in times of global recession, rising oil prices or international crisis. Economists believe that this is the reason why India has been able to withstand global shocks relatively better many times.

advantage of knowledge and skills

Along with money, NRIs also bring their experience and skills to India. Especially in the IT, healthcare and management sectors, returning NRIs bring new technology and modern thinking. This improves the working style and competitiveness of Indian companies.

Also read: This Modi family was famous in the country before PM Modi came into limelight, know how it made its name.

Moody’s Cuts India GDP Growth: This news is going to shock for India on the economic front amid global tension on tariffs. International Research firm Moody’s has now reduced its predecessor estimate of India’s GDP growth rate to 6.1 percent. However, Moody’s has estimated before the 90 -day break on the tariff from the US.

The report states that America is a very big partner of India. In such a situation, 26 percent tariff on goods exported by India will completely deteriorate the business balance. Moody’s warned that the most impact will be on games and jewelery, medical equipment and textile industry.

Also read: Stock Market: Indian market irrespective of global tension, 1300 points jump in Sensex, Nifty also crosses 22800