In spite of the fact that migrant workers' remittances have emerged as a major source of external financing for many developing countries, there is general dearth of literature on their developmental impact on the receiving country. There is a general feeling and limited evidence that such flows are less procyclical and more stable than private capital flows. In India, immigrant remittances have emerged as a major strength to the balance of payments, though the composition of such flows has undergone changes over time. The GATS has not as yet yielded desired liberalisation with respect to cross-border movement of workers. In fact, there is certain hardening of stance by industrialised countries in this respect. Recent market-oriented policy measures in India are likely to have boosted remittance inflows. Measures aimed at reducing the transactions costs involved in cross-border flow of remittance would provide additional inducement to workers’ remittance flows towards developing countries.
URL : http://www.drnarendrajadhav.info/drnjadhav_web_files/Published%20papers/remittance-india-revised.pdf