As the impact of the economic meltdown and credit crises continues to hound, there?s another sector that?s quietly hitting the economy of Punjab. The number of Punjabi NRIs visiting the state came down by 25%-30% in November-December in the year 2008. Besides, a sharp decline in NRI remittances spells trouble for Punjab?s economic health. As Manpreet Badal, Finance Minister, Punjab reasons, ?It is very difficult to take a guess on how economic recession will affect NRI investments in the state. Punjabi NRIs would want to come back to the state as the fear of losing their jobs in foreign nations is looming large on them. They can actually look back to their properties and can start building a good life for themselves here. This, in turn, will help the state’s economy too. It appears that the storm of economic recession will continue to have its impact on every individual for another five years. But Punjab, which has large agrarian base, is a resilient state and is capable of withstanding the economic meltdown.?
However, Punjab?s Rajasansi international airport in Amritsar registered steep decline in the number of passengers. Arun Talwar, Airport Director at Amritsar confirmed that more than 95% are Punjabi NRIs of the total international traffic and economic recession has certainly affected the tourist inflow. Echoing similar version, President of Punjab Travel Agents Association, Kuljit Singh Hayer said, ?Global recession has made many NRIs feel insecure. Most of them failed to visit their homes in Punjab due apprehensions of losing their jobs in case of availing long holidays. Usually Punjabi NRIs primarily from USA, UK and Canada start coming to the state in the November. From the past five year all major airlines used to have 100% reservations in November-December. But in 2008 the inflow fell sharply and many airlines had to offer discounts on tickets to increase the passenger traffic.,? Kuljit Singh added. The response to the convention convened by NRI Sabha in December also remained low as only 2,000 members attended it while the Sabha has registered 12,000 members. Kamaljeet Singh Hayer, President of NRI Sabha said that the ongoing financial crisis has deterred the plans of many Punjabi NRIs to invest in the state.
The money exchange firms also witnessed sharp decline in NRI remittances in November-December while the response in other months was buoyant. Earlier, NRIs used to send money to their homes but of-late many have stopped sending money because of the global meltdown. S Paul, Chairman of money exchange firm Paul Merchants Limited who also has collaboration with Western Union shared, ?NRI remittances from UK and European countries fell by 20% in November-December while from USA there was decline of mere 7% due to the dollar appreciation. However business remained quite upbeat for the rest of 2008. It is expected the situation of decline will continue in till the first quarter of 2009 too.? Another money transfer firm Money Gram registered decline of 25% in NRI remittances flowing to Punjab in November and 35% fall in December.
Punjabi Non-resident-Indians (NRIs) have played a significant role in reviving the economy of Punjab by investing in hospitality, infrastructure and real estate sector. Besides, the state has witnessed a surge in philanthropic contributions from overseas Punjabis for religious and development purposes in their native villages in the past five years. The development work done by NRIs becomes evident as one drives down the rural roads in the Doaba region which comprises of Nawanshahar, Hoshiarpur, Jalandhar, and Kapurthala districts of Punjab. No wonder the state government too has taken many initiatives seeking closer ties with NRIs of Punjabi origin. In a bid to attract investments in the state, the government had organised NRI Sammelan in January which saw participation of 250 prominent Punjabi NRIs. At this gathering various suggestions had emerged which exhorted to take many decisions for the welfare of NRIs. The government is mulling over setting up special NRI judicial court for which a letter has already been written to the High court. Besides, there is also a move to form a NRI advisory Board in the state. In addition to this the government under the investment scheme has raised its monetary contribution from 50% to 75% in the development projects while the contribution from NRIs will be 25% now. Moreover the tourism department of Punjab is in the process of setting up a welfare centre for NRIs at Rajasansi airport. However how far these plans will help in attracting money for development projects amidst the global economic meltdown is yet to be seen.
As Tejveer Singh, Commissioner of NRI affairs in the state said that currently it is difficult to assess the impact of economic recession on NRI investments in Punjab. But India and Punjab is still an attractive market for investments for NRIs and we are hopeful that previous trend would continue, he added.
