Sun, 13 May 2012 18:08:25 GMT

Ask NRIs to increase remittances: Assocham

New Delhi: Increasing internal demand and motivating expatriates to send home more remittances may solve the Indian economy's problems due to a depreciating rupee, an industry lobby said Sunday.

Ask NRIs to increase remittances: Assocham

"At present, NRI deposits are between $52 and $55 billion, which needs to be pushed up to an ambitious level of $75-80 billion," said Assocham (Associated Chambers of Commerce and Industry of India) President Rajkumar Dhoot.

"We will strongly recommend that high-level teams comprising of senior RBI officials, executive directors of banks and chairpersons and senior officials of the finance ministry do roadshows in areas such as the Middle East, South-East Asia and Europe where there is a concentration of Indian expatriates," he said.

According to a survey conducted by economists and bankers, he said, remittances from NRIs had to be mobilised like never before.

While a handful of banks have increased interest rates on NRI deposits, these seem to be piecemeal efforts, which need to be intensified, the survey said.

The rupee has touched an all-time low of moving closer to Rs.54 per dollar and the pressure on the Indian currency increases each time there is a percentage point drop in the BSE Sensex.

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