IMPACT OF GLOBAL FINANCIAL CRISIS ON NON RESIDENT INDIANS (NRI) REMITTANCES

The global financial crisis of 2008–09 raised alarms of deceleration or a kind of reversal of migration and a subsequent decline in remittance, especially to countries with low-income. Usually during the times of financial crisis and natural disaster, remittance from abroad used to increase as migrants living abroad somehow manage to send more money to their household with the intension of helping them. Mexico witnessed the same during the financial crisis of 1995. Remittance to Philippines and Thailand increased after the economic crash in Asian in 1997. Similarly, after Hurricane Mitch in 1998 the remittance to Central America increased. Distinct from the earlier emerging market crises, the present crisis happened in the high-income countries and rapidly spread to developing countries and the result was a global financial crisis. Migrant destinations all around the world got affected and it in turn affected employment and income opportunities of migrants. As a result, the remittance to developing countries declined by around six per cent in 2009 for the first time since the 1980s.Since 2008 the world witnessed a series of economic crisis and resulted in an overall economic downturn around the world. An attempt was made to evaluate whether the economic slowdown since 2008 adversely affected the migrant remittance.