MUMBAI: The share of remittances in India used for investment has gradually increased as compared with the main usage for family maintenance purposes.
This was particularly visible in cities like Hyderabad, Bengaluru, Mumbai, Lucknow, Kolkata and Jammu.
An RBI survey on remittances from overseas Indians show that in 2012-13 investments in equity increased from three per cent of the total remittances in 2009-10 to four per cent in 2012-13 while it was three per cent in the case of investments in land and property and steady at 20 per cent in bank deposits.
Promoth Manghat, vice-president, global operations of UAE Exchange, said the RBI study “gives us an insight into the importance given by the expatriates on sending money home for family expenses. But lately we are witnessing a rise in transfers for investment purposes, be it real estate, mutual funds or term deposits. The weaker rupee could be a reason here as it leaves the expatriate with more rupees in hand, which prompts him to look towards investing for a better future.”
The UAE exchange, which has a market share of 10 per cent of total remittance coming to India, has transferred $6.5 billion till September 2013, an increase of 27 per cent over last year and they hope to touch $8.5 billion by December 2013.
Out of the total remittance transfers to India, the high value remittances accounted for 63 per cent of the total value of remittance inflows.