[Assam] Re: Another Issue

[Roshmi Choudhury]

India has now a vast foreign exchange reserve, but I do not think that it is 
because of NRIs sending money home. MNCs have opened bank accounts here. 
Indian banks have reduced the interest rate to half of what it was before, 
but it is still higher than foreign banks. The current rate of interest on 
fixed deposits in India 5.75% compared to 3% in the foreign banks. Of 
course, Indian banks are gradually reducing the interest rate in phases and 
they are likely to bring it down to 3% in the next phase inorder to equalize 
it with foreign banks. And then we will have to see where foreign exchange 
reserves stands.

Roshmi

But have you thought about the brain drain problem that is going on with 
the IITians?

I am not sure if this argument holds water anymore.

When ITTians or others work overseas (after acquiring a great education in 
India), they make possible, >things like:
Other countries realize how bright these IITians and Indians in general 
are.
Many IITians (and others) are in very high positions in corporate America. 
They often do formulate >policies that help investment in India.
Many of these (brain-drainers) have also invested heavily in India.

Further, most NRIs do send $ regularly to relatives in India. Individually 
they may not seem much, but >foreign exchange reserves in India are very 
high because of factors like this.

I would say in the long run, India as a whole benefits.

A lot of money and time is wasted in educating these bright youngsters, 
and then they leave the country for better prospects instead of trying to 
create a technologically advanced country.

I find this difficult to believe. The rapid surge/advancement in India's IT 
sector and how the world is >dependent on India for its IT needs was due in 
great part of the active cooperation of NRIs (specially >IITians and Indian 
owned businesses).

I would say India's huge investment in educating them has finally started 
to payoff.

Ram
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