Red Flag Rising for India's Finances as Remittances Shrink
- Transfers fell in October-December to smallest since 2011
- Current-account deficit under more pressure as funds drop
Shoppers and pedestrians walk past fruit and vegetable stalls at a street market in Chennai, Tamil Nadu, India, on Thursday, Feb. 25, 2016. India must review its fiscal deficit targets in the coming years, Finance Minister Arun Jaitley's advisers said in a report before he presents the annual budget.
Photographer: Prashanth Vishwanathan/BloombergIndia’s most reliable source of foreign funding is under threat.
Remittances fell to $15.8 billion last quarter, the lowest since April-June 2011 and a 9.4 percent drop from a year earlier, as the global slowdown and slumping oil prices reduce demand for foreign workers. Indians working abroad -- from construction laborers in Dubai to Silicon Valley engineers -- send home the most money in the world, helping to pay for imports of fuel and electronics.