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NRI Remittances Bring Boom to Indian Villages
Thursday, July 29, 2010

When Shreyas Vani, a resident of Karamsad in Gujarat’s Anand district, wants to loosen his tired muscles after a hard day’s work, he just ambles into a swanky parlour bang in the middle of the village.

“It is just one of many (luxuries of life). Young people in our village yearn for them and want them right here. Money is not a factor,” he says, as the latest model of iPod deliberately slips out of his jeans’ pocket.

Two thousand kilometers away in Punjab’s Jallandhar district, when potato seed farmer, Santokh Singh, wanted to buy a car, he hitched a cab ride to Chandigarh, only to drive back in a brand new Audi A4. He says his fellow farmers are not settling for anything less, so why should he. “Our village has narrow roads, but a broad vision for BMWs, Mercs and Audis,” Singh laughs.

Stories such as these redefine rural life as we perceive it. Some villages in India are ahead of the curve and when it comes to luxury, they offer an opportunity to brands, no less secondary to businesses in the metros. Here people want the best cars and branded diamond jewellery. They shop for foreign tours-for travelling as well as study, and use Wi-fi enabled laptops. Here, the raw scent of the farmlands get mixed with the fragrance of a Channel and Diesel.
The secret is quite an open one, whether the village be in Punjab, Gujarat or Kerala. Remittances from their NRI sons and daughters have led to an unprecedented boom in wealth. In Kerala, near Thiruvalla, lies the Kumbanad-Kozhencheri belt which has a whopping `5,400 crore parked in bank deposits! In Karamsad village, remittances have topped `1,500 crore in banks and post offices.

Take the example of Kerala. Real estate development, the most visible sign of recent prosperity that provided jobs to 25 lakh people in the state is also roaring in Kochi after being hit by the Gulf crisis earlier this year.  Hoardings at city junctions announce the arrival of new luxury apartments, the kinds which are usually found in posh localities of metro cities. Big builders already have more plans.

“A lot of investment had been planned there on the basis of projected demand linked to the expansion of the technology parks, and in homes,” says SN Raghuchandran Nair, president of the Confederation of Real Estate Developers. What has this done to villages? Well they look more like a wealthy suburb in a western country than an Indian village.

If this sounds unbelievable, wait till you hear about Asia’s richest village. With remittances of over `5,000 crore, people in Madhapar in Gujarat’s Kutch district, live life kingsize. Apart from cars like the Jaguar, or BMW 7-series, they are particularly enthused by the brand of cosmetics they use. Jadhavbhai Varsani, who runs a plush supermarket in the town, says that imported cosmetics, from L’Oreal to Dunhill and Diesel, sell like hot cakes.

 

 

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