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.

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The Central Government has approved 22 new projects under the Electronics Components Manufacturing Scheme (ECMS) to accelerate electronics manufacturing.

An investment of about ₹ 41,863 crore and production of about ₹ 2.58 lakh crore is expected from these projects. This initiative is likely to create around 33,791 direct jobs, which is a strong positive signal for employment.

The companies receiving approval include big industry players like Dixon, Samsung Display Noida, Foxconn’s Yuzhan Technology India and Hindalco Industries. This is the third tranche of ECMS, covering 11 product segments including mobile phones, automotive, strategic electronics and IT hardware.

Projects will be spread in 8 states, which will promote balanced regional growth. Overall, ECMS is being considered an important step towards taking India out of import dependency and making it a global electronics manufacturing hub.

Former US Ambassador Tim Romer has said that the plan by President Donald Trump to impose a new and heavy H-1B visa fee on Indians, can once again become an issue of talks after the Indo-US trade agreement. This step of the Trump administration has come amid strictness on immigration, which will have a profound impact on Indian IT companies and skilled professionals. The US has already increased 50% tariff and now the proposed 1 million visa fee can make American dreams difficult for Indian students and professionals. However, India is currently studying the impact of this decision.

In a conversation with NDTV, Romer admitted that the step could interrupt the relationship between the two countries, but hoped that the visa issue would be reconsidered after the business talks proceed. He also said that it is possible that the court or the US Congress should stop this decision, because the Congress has the right to decide the number of H-1B visas.

Romer said this big thing

He insisted that giving H-1B visas to Indian students and professionals is also beneficial for America. These students start new companies in the US by acquiring PhD and jobs, which are called ‘Unicorns’ and they create hundreds of thousands of jobs.

Citing a study, Romer said that about 25% of the new technology jobs are made by students of Indian origin, who later become CEOs and strengthen the American economy.

India has also been emphasizing the aspect that H-1B visa holders strengthen innovation, technological development and people’s relations with people. The Ministry of External Affairs said that policies will be evaluated keeping in mind the benefits.

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