Indians settled abroad have emerged as saviors of a slowdown- hit Indian economy as well as an increasingly cash- strapped national exchequer. According to data released by the World Bank, India is the largest recipient of remittances in the world, netting US$ 69 billion (3.72 lakh cr.) in 2012. These remittances are nothing less than manna from heaven for the Indian economy, which is faced with a widening current account deficit (CAD). Even when the global financial crisis hit, remittances remained stable. Stability of remittances depends on where the money comes from and the economic situation in that country. Although not too much is coming from Europe, if the slowdown persists for a long time, this could affect remittances as employment opportunities could decrease.” Overseas affairs minister Vayalar Ravi expressed satisfaction over the fact that remittances have been steadily rising in the past few years. The minister also said the government has taken a number of steps to encourage this inflow of funds.
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