The post reform Indian economy has seen a noticeable influx of foreign money. It has taken the form of FDI, FII and remittances from emigrants. Yet, the last category of inflows have proven to be steady and rising.
The chart below illustrates the trend since 1981. Growth since 1991, especially in the 2000's is hard to ignore. These inflows now make up about 3.6% of GDP. The trend can be attributed to various factors. Increased outward migration, high tech nature of the skills of migrants and improving investment prospects especially real estate in India have all played a part.
Although small in absolute numbers, the outflow of money has also seen remarkable growth lately. Indian companies and individuals are increasingly looking outward for investment and education. This graph below could be a sign of that trend.
Much like the migrants, money seems to be moving in both directions rather smoothly.
The chart below illustrates the trend since 1981. Growth since 1991, especially in the 2000's is hard to ignore. These inflows now make up about 3.6% of GDP. The trend can be attributed to various factors. Increased outward migration, high tech nature of the skills of migrants and improving investment prospects especially real estate in India have all played a part.
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| Source: econ.worldbank.org |
Although small in absolute numbers, the outflow of money has also seen remarkable growth lately. Indian companies and individuals are increasingly looking outward for investment and education. This graph below could be a sign of that trend.
 |
| Source: econ.worldbank.org |
Much like the migrants, money seems to be moving in both directions rather smoothly.
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