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Govt policies & Interventions

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February 22, 2018

The negative reaction to migration among developed countries is likely to make the future of emigration and remittances uncertain in India. What measures should India take to deal with such uncertainties? (200 words)

Refer – The Hindu

Enrich the answer from other sources, if the question demands.

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IAS Parliament 6 years

KEY POINTS

Importance of remittances

·         India followed by China are the largest recipients of global remittances. 

·         In India, remittances have helped lift millions out of poverty and unemployment and enhanced standard of living and human development.

·         The experience of Kerala, which receives remittances equalling 36.3% of its gross State domestic product, is testimony to this.

·         However, in a world that is now witnessing a fractious debate on migration, considerable uncertainties about remittances remain.

Reasons for uncertainty

·         India receives about 56% of its remittances from migrants in West Asia, with the remainder from mainly North America and Europe.

·         Rapid changes in the economy and the socio-political climate in West Asia have had an impact on remittances.

·         The theme of Nationalisation took over the Arab world.

·         Along with declining oil prices and sluggish regional economies, the regional governments decided to prioritise filling their workforce with their nationals.

·         The recent refugee crisis, the largest since World War II, has unsettled European economies, fuelling xenophobic and anti-immigration sentiments.

·         Additionally, developments such as Brexit and the Trump presidency in the U.S. have further complicated migration and the flow of remittances.

Impacts

·         States, excessively relied on remittances would be affecting economically.

·         Without alternative means of employment, it is a great challenge to reintegrate and rehabilitate returned emigrants into the society and economy.

·         For example, Kerala receives Rs.71,000 crore in 2014 alone. 

·         If the State does not identify alternative means of employment and revenue generation for its labour force as well as returned emigrants, it will turn out to be problematic.

What needs to be done?

·         The government should adopt measures to utilise local resources and create jobs. It might end up in a better position overall.

·         It also demands innovative policies targeted at skilling, re-skilling and educating both prospective and returned emigrants.

·         It is imperative for developing nations to formulate strategies to compensate for the restricted flow of remittances that is expected in the near future.

·         The proposed India Migration Survey 2020 will explore these issues and evolve adequate policy responses.

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