They feel that the government was no longer interested in their remittances, which were most sought-after two decades ago when the current prime minister, Manmohan Singh, had begun the financial reform in his capacity as India’s finance minister. Now that foreign institutional investment is flowing into the country, money sent by workers abroad has lost much of its relevance.
“While this shows the confidence level of Indian planners, it also reveals the apathy on their part toward the millions of Indians who earn their livelihood outside India,” said Abid Moiz, a writer from Hyderabad and a long-time resident of Riyadh.
He, as well as others, was especially not pleased with the Indian government’s decision to lower the interest rate on the Non-Resident External Rupee (NRE) and Foreign Currency Non-Resident (FCNR) deposits. While it used to be as high as 18 percent in early 90s, the new budget has brought it down to less than three percent.
Shabbir Patel, a known community member from Mumbai and a business consultant in Jeddah, said the budget totally ignores non-resident Indians’ (NRIs), especially those living in this part of the world.
“There is nothing in the budget for us to cheer about,” he said.
Patel said Gulf NRIs are different from those in the West.
“We repatriate 100 percent of our hard-earned money,” he said. “By not recognizing our contribution, the government in a way is telling us to invest somewhere else.” He said the government should make special provisions in the budget for Gulf NRIs, who unlike their Western counterparts are bound to go back to India. Their need to set up businesses, buy houses and invest through bank deposits should be addressed, he added.
According to Abid Moiz, blue-collar NRIs generally do not invest in property.
“The small earners keep their savings in fixed deposits,” said Moiz. “Low rates mean low returns.”
The rate on hard currency deposits is currently two to three percent. It goes up to eight percent if an investor decides to convert his currencies into Indian rupees.
Tariq Azam Ali from Bihar, a sales manager in a leading trading company based in Dammam, said while it was heartening to see the Indian rupee gaining strength internationally, for NRIs it has become a “double blow.”
“While they are getting less money for their hard-earned foreign currency, in India ever-increasing inflation is reducing the value of their money,” he maintained.
