Punjab, which earns about $15 billion through foreign remittances annually, has been witnessing a drastic shrinkage in inward remittances, courtesy the financial meltdown and salary and job cuts globally. Punjabis, settled mostly in the UK, Europe, Canada and Australia, repatriate a substantial part of their income back home.
“Inward remittances to Punjab have been declining by about 15 per cent. Though there was a slight recovery in March as many non-resident Indians visit India during December and January and go back in February, the lay-offs abroad may further dent the inward remittances,” said S Paul, chairman and managing director of Paul Merchants Limited, a private primary agent of Western Union Money Transfer.
Expenses incurred by students studying abroad constitute a major part of outward remittances. This business too was hit by about 20 per cent, he added.
According to sources in Thomas Cook, Australia’s decision to put India in Category-IV for seeking student visas last year affected the exodus of students towards that country. “But that was to a large extent absorbed by New Zealand as an alternative. Over 75 per cent of students in Punjab prefer to study in Australia due to better employment opportunities and easier permanent residency norms,” they said.
The cost-cutting measures adopted by corporate biggies are also showing a negative impact on the forex business in the region by around 25 per cent, Paul said. “We clocked 90 per cent growth during the last financial year but are apprehensive about this year's performance,” he added.