"When Indian policy makers held rates steady last week, their main concern was over the current account deficit and the weakening rupee.
But there is another group of people who will be watching those two numbers closely – who just happen to be the same folk that have been quietly helping reduce the current account deficit for a while now: non-resident Indians (NRIs) with deposits in Indian banks.
The bank deposits of NRIs have been doing more and more to narrow India’s balance of payments. In the 2010 fiscal year, when the country ran a current account deficit of $38.2bn, NRI deposits totalled $2.9bn. In 2011, those numbers were up to $45.9bn and $3.2bn, respectively. Then there is a big jump in 2012 when, with the current account deficit at $78.2bn, NRI deposits came to $11.9bn."
'via Blog this'
No comments:
Post a Comment