Some years ago, NRI remittances used to be in the form of NRE deposits in banks. So banks were plush with funds which they used to disburse to small industries and farmers which were being used somewhat productively.

But now, to make quick buck banks are disbursing funds to real estate. And the same real estate is selling properties to SAME NRIs at exorbitant prices.

SO NRI money is SUCKED into real estate instead of JOB CREATION.

That way , the MONEY GENERATED AND REMITTED FROM ABROAD as a result of liberalization was SUCKED INTO REAL ESTATE - DEAD CAPITAL for the country.
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  • Originally Posted by dubyaskin
    Some years ago, NRI remittances used to be in the form of NRE deposits in banks. So banks were plush with funds which they used to disburse to small industries and farmers which were being used somewhat productively.

    But now, to make quick buck banks are disbursing funds to real estate. And the same real estate is selling properties to SAME NRIs at exorbitant prices.

    SO NRI money is SUCKED into real estate instead of JOB CREATION.

    That way , the MONEY GENERATED AND REMITTED FROM ABROAD as a result of liberalization was SUCKED INTO REAL ESTATE - DEAD CAPITAL for the country.


    NRI are buying:)??? that is also the part of the problem that has caused the prices to go up in india and in even small places in india.
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  • From total of 60-70b $ in NRI remittances, how much would be going into real estate?
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  • Originally Posted by ashish18
    From total of 60-70b $ in NRI remittances, how much would be going into real estate?



    My guess is upwards of 80%. More but never be less.
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