Increasing internal demand and motivating expatriates to send home more remittances may solve the Indian economy’s problems due to a depreciating rupee, an industry lobby said Sunday.<\/p>\n
“At present, NRI deposits are between $52 and $55 billion, which needs to be pushed up to an ambitious level of $75-80 billion,” said Assocham (Associated Chambers of Commerce and Industry of India) President Rajkumar Dhoot.<\/p>\n
“We will strongly recommend that high-level teams comprising of senior RBI officials, executive directors of banks and chairpersons and senior officials of the finance ministry do roadshows in areas such as the Middle East, South-East Asia and Europe where there is a concentration of Indian expatriates,” he said.<\/p>\n
According to a survey conducted by economists and bankers, he said, remittances from NRIs had to be mobilised like never before.<\/p>\n
While a handful of banks have increased interest rates on NRI deposits, these seem to be piecemeal efforts, which need to be intensified, the survey said.<\/p>\n
The rupee has touched an all-time low of moving closer to Rs.54 per dollar and the pressure on the Indian currency increases each time there is a percentage point drop in the BSE Sensex.<\/p>\n
Dhoot said the NRIs must be given assurances that given the global uncertainties investing back home makes better business sense.<\/p>\n
“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,” he said.<\/p>\n
NRI deposits in the country can be raised by at least $10-15 billion in the short term by taking confidence-building measures and offering attractive interest rates, the survey said.<\/p>\n
“The outflows by the foreign institutional investors (FIIs) are not the result of only the so-called policy paralysis, but mostly because of risk aversion by the global investors into the equity markets,” it added.<\/p>\n
Dhoot also said once the internal demand was generated, the FIIs would return to the Indian markets which would soon have attractive valuations again.<\/p>\n
On reviving internal demand, the survey said moderating interest rates would send a strong signal and boost consumer confidence. Also, the investment climate should be improved soon<\/p>\n","protected":false},"excerpt":{"rendered":"
Increasing internal demand and motivating expatriates to send home more remittances may solve the Indian economy’s problems due to a depreciating rupee, an industry lobby said Sunday. “At present, NRI deposits are between $52 and $55 billion, which needs to be pushed up to an ambitious level of $75-80 billion,” said Assocham (Associated Chambers of […]<\/p>\n","protected":false},"author":21,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[8341],"class_list":["post-20186","post","type-post","status-publish","format-standard","hentry","category-top-law-news","tag-assocham"],"yoast_head":"\n