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“The findings of a study (conducted by the RBI) revealed that there are no indications about workers from the Gulf Region returning to India,” the RBI said in an analysis of trade in services, remittances and income.
Although no official data is available on job losses suffered in the Gulf countries, the RBI study said, bankers have not “noted any trend in reverse migration.”
As regards inward remittances, the analysis added, the global crisis has not slowed down the flow of funds from NRIs living in the North America, the Gulf Region and Europe. “So far there were no slowdown in the inward remittances," said the RBI study, which is based on the information collected from its regional offices.
However, further deterioration in the global crisis can have a bearing on the inflow of NRI funds in the days to come, the report said, adding that "some slowdown in remittances due to the global financial crisis and associated contraction cannot be ruled out.” The RBI report, based on informal discussions with the NRIs, pointed out that “lot of Indians as well as people from other nations are losing jobs in UAE, mainly in the construction industry, where companies are attempting to reduce expenses.”
Most of the lay-offs, the report said "has affected people who were working at the entry level or lower level executives."
Following decline in prices of construction material, the report added, many companies in the Gulf region, have started re-tendering projects. The remittances from NRIs depend upon interest differential and the exchange rate movement, it said, adding, “due to rupee depreciation in the recent period, there has been a significant rise in inflows particularly through rupee denominated NRI accounts.
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