Gujarat Sees Significant Rise in NRI Deposits
AHMEDABAD: Gujarat has witnessed a remarkable increase in deposits made by non-resident Indians (NRIs), with a growth rate of 18% during the financial year 2024-25. This rise marks the highest growth seen in five years.
The latest report from the State-Level Bankers’ Committee (SLBC) reveals that the total value of NRI deposits in banks across Gujarat reached ₹1,09,101.80 crore by March 2025, up from ₹92,339.75 crore in March 2024. This increase is particularly impressive compared to last year, which saw only a slight increase of 0.45%.
Experts believe the surge is primarily due to the stronger US dollar, making foreign currency deposits more appealing for NRIs looking to enhance their financial returns. In March 2023, deposits stood at ₹91,923.69 crore, which was a 14% rise from ₹80,182.76 crore in March 2021. Interestingly, deposits in March 2020 were nearly unchanged at ₹80,109.21 crore.
Bankers attribute this growth not just to favorable currency conditions but also to various other factors. Co-operative banks, in particular, have reported an increase in NRI deposits. Ajay Patel, chairman of the Gujarat State Co-op Bank, noted, "Gujarat’s diaspora has maintained a strong connection with their roots. They continue to invest in India’s growth story, and co-op banks have seen an uptick in NRI deposits."
A notable increase in remittances from NRIs of Gujarati origin in places like the US, Canada, the UK, and Gulf countries has also contributed to this trend. With currency appreciation, NRIs can maximize their returns while staying connected to their homeland. A banking source added that many Gujaratis prefer to invest their earnings in secure options like fixed deposits.
Moreover, NRIs are becoming increasingly aware of the investment opportunities available in India, such as real estate and government-backed schemes, many of which require initial deposits via NRI accounts. As global economic uncertainties and currency fluctuations continue, Gujarat’s banks are expected to remain a preferred option for diaspora investments in the foreseeable future.
