Non-resident Indians (NRIs) have shown remarkable confidence in the resilience of the Indian economy amidst challenging global macroeconomic conditions by depositing approximately $1 billion in April alone.
This figure marks a significant increase from the $150 million deposited by overseas Indians in the same month last year, signaling a robust belief in India’s economic trajectory.
According to the latest data from the Reserve Bank of India (RBI), the surge in NRI deposits highlights the strength and stability of the Indian economy.
This growing trend reflects in the country’s economic growth rate, which has shifted upward from the 2003-2019 average of 7% to an anticipated average of 8% or higher for 2021-2024.
The three primary deposit schemes available to NRIs in India include the Foreign Currency Non-Resident (Bank) [FCNR(B)] account, the Non-Resident External Rupee Account [NRE(RA)], and the Non-Resident Ordinary (NRO) deposit scheme.
In April, NRIs contributed $583 million to the NRE(RA) scheme and $483 million to the FCNR(B) scheme.
During the pandemic, NRI deposits grew from $131 billion to $142 billion, underscoring the continued trust and confidence in the Indian economy from the diaspora.
In a related development, India’s foreign exchange reserves reached a new lifetime high of $655.8 billion, an increase of $4.3 billion, according to the latest RBI data.
This surge in reserves not only reflects the strong fundamentals of the Indian economy but also provides the RBI with more flexibility to stabilize the rupee during periods of volatility.
India is projected to hold a 15.2% share of global remittances in 2024, maintaining its position as the largest recipient of remittances worldwide.
This influx of foreign currency is vital for the country’s economic health, allowing for greater economic stability and growth.
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