Gujarat Banks See Boost in NRI Remittances
Ahmedabad: In a positive turn for Gujarat’s banking sector, remittances from Non-Resident Indians (NRIs) surged by ₹10,000 crore during the second quarter of FY26. According to the latest report from the State Level Bankers’ Committee (SLBC) for Gujarat, NRI deposits increased from ₹1.01 lakh crore in the July–September 2024 quarter to ₹1.11 lakh crore this year, marking a 10% rise.
Bank officials attribute this growth to the strengthening of the US dollar against the Indian rupee. They noted that this trend shows increasing confidence among NRIs regarding the economic prospects of Gujarat for 2025. Experts highlighted that recent reductions in Goods and Services Tax (GST) have improved consumer sentiment across various sectors, encouraging spending.
“A stronger dollar means that NRIs get more value in Indian currency for their dollar investments,” explained a high-ranking banking official. The dollar rose from ₹83.84 to ₹88.83 by September 30, 2024, reflecting nearly a 5% increase.
The overall economic environment in India, along with GST cuts, has built greater confidence among NRIs, particularly those who have business or personal connections in Gujarat. With expectations for increased domestic consumption and a revival in capital expenditure, expatriates are more inclined to deposit funds in local banks, seeing it as both a secure and advantageous option.
Industry experts pointed out that this optimism isn’t solely about consumption patterns but also extends to the investment landscape. “The current wave of initial public offerings (IPOs) featuring several Gujarat-based companies has drawn interest from NRI investors. We’ve observed a temporary uptick in deposits to support IPO applications, which has contributed to the annual growth,” remarked a senior banking sector executive.
According to Jayesh Vithalani, a financial consultant based in Ahmedabad, NRIs increasingly view India’s primary market as a reliable opportunity for both quick returns and long-term investment. Many investors are optimistic about IPOs, primary markets, and mutual funds in India, which is enhancing liquidity within the banking system.
Additionally, the real estate market is also seeing an influx of investments. Property prices in cities like Ahmedabad, Surat, Vadodara, and Gandhinagar have been steadily increasing over the past year, driven by high-demand developments and ongoing interest from NRIs.
Developers report a rise in inquiries from NRIs looking for luxury homes, property plots, and rental income-generating commercial spaces, indicating that the growth in deposits is part of a larger shift in how NRIs are repositioning their capital.
