What testifies to the fact that the economy of India is still going great guns, despite the global economic conditions, is the fact that NRIs have deposited around $1 bln in April into the country.
This was a good jump from the $150 million that overseas Indians deposited in the same month last year, underlining their increasing faith in India's economic prospects on the back of an unmistakable upward trend. This is reshaping the growth trajectory of India, above the average of 7% witnessed from 2003-2019 to one of 8% plus from 2021-2024.
According to the very latest data from RBI, NRI deposits are surging—this acts as testimony to the resilience of the Indian economy.
There are, in all, basically three deposit schemes in India by NRIs: the Foreign Currency NonResident (Bank) or FCNR(B), NonResident External Rupee Account or NRE(RA) scheme, and the NonResident Ordinary NRO deposit scheme. In April, deposits by NRIs stood at $583 million for the NRE(RA) scheme and $483 million under the FCNR(B) scheme.
NRI deposits had increased from USD 131 bn to USD 142 bn during the pandemic itself, expounding on the faith in the resilience built into the economy of India.
Meanwhile, the foreign exchange reserves of India jumped $4.3 billion to an all-time high of $655.8 billion in the latest RBI data. The country is likely to increase these remittances to as much as 15.2 per cent next year and remain the biggest recipient of remittances globally.
The rise in foreign exchange reserves underlines strong fundamentals of India's economy and gives further room for intervention to the RBI to intervene and stabilize the rupee further when required.
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