The World Bank reported that India has once again toped the list of recipient countries with highest remittances from its expatriate workforce. The primary driver was found to be the steady economic activity from the GCC countries. It also stated that there has been strongest growth in South Asia and MENA among developing countries.
The pace of the Rupee is depreciating much quicker than the rate of appreciation, the most notable statistic being an overall 27 per cent decrease since December 2010. NRIs are making the most of lower exchange rates, however, the depreciating value of the Rupee causes steep import costs and increasing inflation. As a result, the Indian economy continues to slump.
Banks in Kerala hold Dh37.1 billion in NRI accounts in the first half on 2012, a striking contrast to the Dh25.6 billion in 2011. Since the crumbling in the value of the Indian rupee, Keralites abroad have been piling on deposits into banks in Kerala thus causing the figures of deposits from NRI accounts to double in the past year.