At present, SGD to INR or USD to INR conversions is yielding the highest value since March 2018.
Biggest challenge faced by all countries including India is to keep the economy from crumbling down completely. Then questions comes in mind – Do We have any investment opportunities in 2020?
Covid-19 is a nightmare the world is living with every day. Not less than a curse on human race that fell on world from China, this disease is literally changing the way world is functioning. The world which was on the way to more and more developments is now creating new normals to adjust and survive. Biggest challenge faced by all countries including India is to keep the economy from crumbling down completely. At present, SGD to INR or USD to INR conversions is yielding the highest value since March 2018.
NRI remittance showing downward trend
Various relief packages were announced recently by the Indian Government in order to maintain livable conditions for the lower strata and small scale businesses. Initial capital disbursement support to NRI traders is also being designed. This is in response to some cruel facts that show NRI remittance has dwindled down in the recent times as a direct impact of Covid 19. These facts are:
- NRIs from Gulf returning to India in large numbers
A condition of reverse migration is happening in India. In the last three months, returning of Indian workers from Gulf countries has been reported. World Bank has reported that there has been 23% downfall in the inward remittance.
Remittance has been a major source of impetus for economic growth in India. Thus, the country is not only losing on remittance, it is also eyeing at a huge diaspora of unemployed migrants who have lost jobs due to Covid-pushed lockdowns all over the world.
- Loss of jobs leading to economic unrest in demand creators
Remittance is possible only when there are earnings. Covid situation has taken away the jobs of the people. they are forced to return to homes only to survive on their savings.
A practical measure
To keep the flow of remittances smooth, steps like offering the best exchange rates with the help of cost-effective digital disbursement and development of digital ID solutions to enhance safety of remittances are under consideration.
What is India doing to create investment opportunities?
Investment opportunities in India are going to grow in accordance with the relaxation in cross-border trade norms. The need of the hour is to absolve various customs restrictions that can ease the trade between the countries. India is seriously considering the points such as:
- Make In India: Taking advantage of anti-China narrative sentiment prevalent in the country, India is promoting the concept of ‘Make In India’ and inviting global players previously having their manufacturing bases in China to consider its land as an alternative.
- Relaxed custom rules: 24 x 7 customs clearance, extension of validity of Foreign trade policy, dispensing the need to submit bonds and easing documentation procedures for claiming exemptions from duty are some of the ways adopted to maintain seamlessness in foreign trade.
Currently, both the remittance and investment opportunities are not in good shape in India. But, with the control and containment of pandemic and revival of economy, India is likely to spring back with added elan post Covid.