How NRI Contribution Affects The Indian Economy
Over the past few years, there has been a lot of talk about how India is becoming more affluent every year. With this growing wealth gap, comes an even greater need for social justice.
India’s rich have a much bigger responsibility than just buying expensive things; they also have a moral obligation to contribute to the well-being of those around them. The wealthy can start by giving back through philanthropy or investing in organizations that help others, but he should also look into policies that could improve the quality of life for underprivileged people.
This article will discuss ten ways that the wealthy can contribute to the economy and society in India. Many of these ideas are common sense, while some may be new strategies for you to implement into your daily routine. However, making a difference takes effort so we hope you will do something today!
You don’t have to spend lots of money to make a big impact– sometimes all it takes is creating a conversation.
Why are they important?
As we have seen, India is an emerging economy with vast potential. However, it is crucial for companies that want to expand or start up in this market to understand the strengths of the country before investing. The nation’s rich history as well as its geographical position make it very conducive to foreign investment.
A strong currency makes exporting more profitable and easier to do. A stable government helps ensure business will be conducted with fairness and without excessive interference or regulation. These benefits can be hard to find outside of developing countries.
NRI’s (Non-Resident Indians) play a major role in the growth of the Indian economy. According to data from the Reserve Bank of India, there were over 80 million NRIs back in 2001, making them the second largest migrant group in India after those working abroad for employment. This number has since grown dramatically!
There are many reasons why people choose to live overseas. Some move because their own country doesn’t offer enough opportunity, while others enjoy the culture beyond what is available at home. Many simply prefer life out west so they pack up and go.
Whatever the reason, these immigrants contribute heavily to the economic development of their new homes. In fact, according to research done by Oxford University, every £1 spent on international student fees results in an income of £842 for the local economy, and every £1 billion generated yields around £4–5 billion in additional revenue for the national treasury.
They back Indian business
The Nigerian community in India is an integral part of the country’s economy. Since the early 1990s, Indians have been investing heavily in businesses run by people of Nigerian origin. This includes importing products that are manufactured in Nigeria or producing them at home.
The vast majority of these companies are small and privately owned, but their influence has still been significant. According to data from Forbes, there were 1.3 million non-Nigerian individuals with substantial investments in the Indian market in 2018.
These investors include both wealthy individuals as well as charitable foundations and trusts. Many of them come from the same ethnic group which makes it easy to share experiences and tips.
This article will discuss some ways that Nigerians have helped contribute to the economic growth of India. While most studies focus only on direct financial contributions, this article will also look at the social impacts.
They spend money
People who live in or visit India for more than 2 weeks can appreciate how expensive this country is! Health-care facilities are excellent, eating out is very affordable (even at luxury restaurants), and transportation costs are quite reasonable.
This article will discuss why Nigerian tourists contribute to the economy by spending money while visiting India. Start looking through these reasons quickly so that you do not have to take too long to read them!
(Note: Many of these points can be directly applied to any foreign destination, not just India. Most people enjoy traveling, which helps support the tourism industry. So feel free to add other countries as needed!)
Why Do Nigerians Spend Money In India?
To understand the reason behind why most Nigerian touristspend money during their trip to India, we must first talk about what kind of traveler theyare.
Some people spend a lot because they go extremely budget-friendly. These individuals will stay in shared accommodations with no private room amenities such as sleepers or pillows. They may even have to pay extra to use common washrooms or sites like Airbnb where there is no private bathroom or shower.
Another type of traveler does not give themselves much credit, thus requiring less spending. This person might stay in 5 star hotels but will probably only ever use public transport. They may also never eat at a restaurant unless it has an “ambience” or “feel” of a fast food chain.
They get credit for India
In fact, Indians are so obsessed with this myth that they create false stories about how immigrants have contributed more than their share of the national wealth.
The most common example is the claim that wealthy Arabs or Muslims built up Pakistan through business acumen. This narrative was popularized in the West after 9/11 when some people made the connection between Osama bin Laden and Pakistani billionaire Zulfikar Ali Khan.
But there’s little evidence supporting this assertion. According to an article by The Diplomat, not one of the 1,100 individuals listed as “the richest person(s) in Asia” is Muslim. Only seven were from South Asian countries (India, Bangladesh, Sri Lanka, Nepal, Malaysia, Turkey). Two others — David Koch, co-founder of oil company Koch Industries, and George W Bush — both grew up Jewish but converted later in life.
They help grow the economy
People often talk about how immigrants are a wealth creator for a country, moving their country up the economic ladder. But what if that was not the case? What if immigrant workers actually cost your country money?
In fact, recent studies have found that immigration can be expensive! The reason is simple – it takes resources away from citizens and gives employment to people who are already members of the workforce, so they earn more than natives do. This increased income then goes towards buying food, clothes, houses, and other things with money that native workers must spend.
This effect is very strong when immigrants come in large numbers and spread out across the nation. It becomes even stronger as time passes because there are now proportionally less native workers to compete against.
They are important for tourism
India is a beautiful country that attracts many tourists from all over the world. Many of these visitors are here to see the rich culture, history and spirituality of our country!
India’s most famous tourist attractions include the Taj Mahal in Agra, the Great Wall of China in Beijing, and the Colosseum in Rome. All three of these sites are incredible to visit, but none have the impact as they do on local economies.
The economy around the Taj Mahal includes restaurants, hotels, tour operators and other businesses related to visiting this site. Similar things can be said about both The Great wall and the Colosem in Italy.
A less known fact about the Taj Mahal is that it was not built exclusively by the wealthy rulers of Mughal Empire. In fact, most people don’t know that up until 1947 there were no contributions at all coming into the project! It wasn’t until later that the work stopped moving forward because of lack of resources.
They should be tax resident
The term ‘Indian citizen’ is not self-explanatory. It differs from person to person depending upon what country they are referring to, whether it is India or another. In this article we will discuss who is an Indian national and how much income you earn in India that makes you qualify as such.
A very important part of being an Indian national is having citizenship papers which prove your nationality. These documents vary from person to person so there no general rule for if you qualify or don’t.
However, most countries require at least one year residency before granting full citizenshipship. This gives time for people to become familiar with the local laws, resources and opportunities. This also helps them find employment easily without needing visas or work permits.
This article will talk about Nigerian residents and their contribution to the economy here in India.
They should file tax return
As Indians, we need to know how our NRI (Non-Resident Indian) relatives are contributing to India’s economy. The average Indian does not understand this due to lack of information. Many people believe that all rich people are wealthy because they enjoy spending money on expensive things such as luxury cars and big houses.
However, there is a small group of individuals who contribute more to the country than most others. These high income earners are investing in businesses or developing technology that can help improve the lives of many. This is why their wealth increases – they spend it on business investments and technological advancements.
There are two main reasons why these wealthy individuals choose to remain in foreign countries. First, it is much simpler to live abroad than back home. Taxes are lower so they save money, and second, they do not have to deal with too many complications at home.
If an individual decides to invest his/her money in India, then he/she will face several issues including language barriers and poor infrastructure. It may be difficult for them to access good services and facilities which could hurt their investment.
Sources: PravdaBZ, HuffingtonPost, Forbes, Moneycontrol.com, Investopedia, Wikipedia, Business Insider, BBC.
This article was written by Sean O'Brien and published under Creative Commons Attribution 4.0 International.