Last year (2021-22), India received $ 89 billion worth of foreign exchange (Forex) from NRIs. This is 3 percent of the country’s GDP. The population of NRIs worldwide is 2.5 crore. Most of the remittances were sent by 88 lakh Indian workers living in six Arab Gulf countries. They are working under hot sun at 45 Degree Centigrade heat. Boiling their blood and sweat to earn the money. Recent reports indicate that the Indian government’s foreign exchange (Forex) reserves are decreasing. Forex reserves fell to a 2-year low of $564 billion. The value of the rupee has fallen to rock bottom.
The Indian government is doing export and import business by sending poor workers abroad. The Indian government, which is exporting human resources abroad at no cost / zero investment, is strengthening the Indian economy with remittances from expatriates. The Governments are interested in NRI’s investments and donations only. They are least bother about the welfare of their citizens abroad. The Central and State governments are not allocating any welfare budget to change the lives of migrant workers. Single migrants (without family), low educated, low skilled and low income workers suffer more injustice than the others.
They crossed the seven seas to work in the desert countries. By converting their blood and sweat and sending the money earned to their home country in the form of foreign exchange. They are serving their part as financial soldiers for the Indian economy and as partners in strengthening the country’s economy. Like the soldiers who work on the borders of the country, they also leave their families and go to distant shores to serve the motherland.
An estimated 15 lakh migrants from Telangana state are working in the Gulf countries. An average monthly remittance of 700 UAE Dirhams / Saudi Riyals (or equivalent Gulf currencies) is equivalent to Indian Rs 14,000 per worker. If 15 lakh Telangana Gulf expatriates send Rs.14,000 per month, it will be Rs 2,100 to Rs 25,200 crore per annum.
The foreign exchange sent by Telangana Gulf expatriates is used domestically by their family members, at least 10 percent GST will generate income of Rs.2,520 crores per year to the Central and State governments in the form of taxes. That also means the Telangana State is profiting Rs. 1,260 crore per year under its half share.
The Export Oriented Units Scheme was introduced in1981 by the Government of India. The main objective of the scheme is to increase exports, foreign exchange earnings and generate additional employment in India.
The Gulf jobs recruiting system should be given an ‘Industry Status”. The Export Promotion Council should be established. Subsidies should be given for things like medical tests, flight tickets and skill training. Government of India has allowed recruiting agencies to charge Rs 30,000 or 45 days salary from each job seeker. The Governments’ support for free recruitment without recruitment fee is essential. It is unfortunate that India, the largest exporter of workers, does not have a migration policy.
Bheem Reddy Mandha is President of Emigrants Welfare Forum. He spoke on ‘Gulf Migration and Remittances” at a conference in Telangana on September 22. This is the edited version of his speech.
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