New Delhi : The crash in crude oil prices and its crippling impact on economies of the Gulf nations can deal a severe blow to remittances to India, says industry body Assocham. An analysis by Assocham observed that the maximum impact could be felt in Kerala where almost every other family is dependent on remittances, mostly coming from the Gulf nations. States like Punjab, Uttar Pradesh which also send a sizeable number of workforce there would also be affected.
“Besides, fresh investment in the energy sector has come to a halt leaving a negative spin off impact on a host of sectors like construction, tourism, real estate, banking and finance,” the chamber said. It said while the RBI data for April–September 2015-16 shows an uptick in the NRI deposits of $10.1 billion from $6.4 billion in the same period last year, the trend is bound to get adversely affected in a multi-pronged fashion, going forward.
