Indians in the UK: Migration and Remittances

Abstract

This paper is an attempt to demonstrate the potential contribution that the Asian community in general, and the British Indians, in particular, can make to their respective home and host economies via remittances. It is well documented that migrants have proven to provide the host country with invaluable human capital enabling the achievement of economic growth and development. We argue that a large majority of such inflow of remittances is directed to the poorer communities in Asia, hence providing the means of eradicating poverty. An examination of the relevant data coupled with the application of economic theory has led the authors to recommend the policy makers in the western economies to encourage further recruitment of Asian workers. Furthermore, we have made a detailed reference to the political economy aspects of voice and exit in relation to remittances. On the whole, we have concluded that remittances can also help countries to enhance democracy and socio-economic reforms.  On examination of our case study, we argue that enhancement of remittances by Indian workers can act as a viable alternative to development aid and any other forms of assistance. Furthermore, unlike development assistance, remittances go directly to the deprived masses and hence are more efficient and equitable means of assistance. Equally, we demonstrate the highly significant contribution that the British Indians have made to all aspects of the UK economy since their arrival back in the 1950s. The paper concludes by stating that policy-makers in the UK should be encouraged to promote and facilitate means of attracting foreign workers to different sectors of the economy, particularly those from Asia.