FDI vs remittances
There is so much hype about Foreign Direct Investment but nobody talks of the real wealth flowing from abroad – remittances by Indians residing abroad. 15 years of reforms, which catapulted an economics professor to the PM’s office via the FM’s office, brought in $14 billion foreign investment in 2004-05 while Indians abroad remitted home $21.7 billion. May be this money does not go into the sensex or the industry and so gets no publicity. A large part of these inflows is being sent by people who have gone from Punjab, Gujarat, Andhra Pradesh and Kerala. Government should do something to see that this money is put to good use instead of jacking up the price of real estate. Prime Minister Man Mohan Singh is to launch the Universal Integrated Electronic Remittances Gateway at Hyderabad during next month.