Brexit will not effect remittances to Goa

Panaji: Fears of a drastic fall in non-resident external (NRE) remittances may be unfounded especially in the near term given that the funds repatriated to Goa from the United Kingdom remain lower than the remittances from the Gulf region. Experts point out that citizenship of any European nation allows an individual to garner a higher income, lower cost of education and seamless travel access to Europe, and thus the Brexit referendum would not have a dramatic impact on those Goans who are already in the United Kingdom.
“There may be a marginal fall in remittances not because Goans will be out (from the continent) but because maybe a few people may lose their jobs. For new people to go it will be difficult, but for those who have a Portuguese passport it will be easier, because UK will obviously have a soft corner for Europeans,” commissioner for NRI Affairs, Dr Wilfred Mesquita said.
Non-resident external (NRE) deposits, monies sent by workforce from foreign soil to families back home in Goa, amounted to 11,875 crores as on March 31, 2016. Remittances as on December 31, 2015 stood at 11,466 crores. Exact figures of funds repatriated from Goans settled in UK are unavailable. “I don’t think there will be any impact. In the near future, I don’t see any major problem. The Gulf region is a bigger source of remittances,” a banker with HDFC Bank said.
“As of now, Gulf accounts for the highest remittances. I don’t believe the myth that the lines for Portuguese passports will become short because not everyone taking a Portuguese passport is going to UK. A lot of people are taking the passport and going to the Gulf. If you have a Portuguese passport you get double the pay, it is easier to travel, and children’s education is half the cost of European universities. Any European gets double the pay in the Gulf and in Europe,” Mesquita said.
Goa chamber of commerce and industry (GCCI) did not foresee any significant impact on trade and commerce either. “As far as trade and commerce is concerned, we don’t think that Brexit will have much impact on Goan businesses directly. Britain’s exit from the EU is not expected to have an impact on India because the two-way trade between India and the UK has been fairly stable for last 5-6 years,” GCCI president Narayan Bandekar said.
Bankers who are part of the state-level bankers’ committee (SLBC) said that they have seen robust remittances from NRIs, with remittances primarily from Gulf countries where majority of overseas Goans have settled, while some funds come from Canada and UK.