Exporting People

Ever since childhood I was concerned about the fact that Indian currency was weak, and used to pester my father with questions related to the subject. At that time this was the crux of his explanation:

1. India's exports are less than its imports,
2. Exports determine the income of foreign currency, which in turn adds to the strength of your currency,
3. You export only what you have in excess.

At that time, the only thing I could find India having in excess was people. And I also remembered my father telling me that American's could not afford maids or servants as labour there was very expensive. Somewhere, I also happened to read that Russian population was facing negative growth.

I always wondered if we could export our excess people to generate more foreign currency. (At that time, service exports were unheard of. ) Well, globalisation has made this dream come true. Corporates all over the world realised, that with liberalisation and communications revolution in India , it was much cheaper to get work done there.

Indian were and still are going abroad for education and work, but it is mostly our expats from UAE send in regular remittances, which bring in invaluable foreign exchange. But Globalisation rather than taking people away from India has brought work from other countries (which need not be done in those countries) to our country. This must be a rare case where an import (i.e. work) has generated foreign exchange for a country.

Well, for all its detractors, globalisation does hold the potential to bring the world a level playing field, providing opportunities for all. Use it well and it can help you grow.