Punjab, as many of the Indian states may be negatively
affected by the financial crisis in the US. Many NRIs of Punjabi origin
have set up trusts and charities to enhance the health, education and
social infrastructure in Punjab. Besides, remittances (estimated at
US $ 2 to 3 billion per year) are contributing to an enrichment of the
state (World Bank, 2004)
Also deeply affected will be the large number of NRI-backed philanthropic
projects in Punjab. NRI investments include those like developmental
projects like schools, hospitals and village infrastructure. A survey
conducted by a Jalandhar-based organization, Vichar Manch, in 2002 of
477 villages located in seven tehsils of the Doaba region showed that
NRIs had contributed more than Rs.2 billion in the 477 villages. That
is about Rs.4 million per village. NRIs have been contributing for setting
up educational institutions, dispensaries, hospitals, crematoriums,
sports stadiums, street lighting, sanitation, and clean drinking water
projects. A depression in the US economy will of course mean a corresponding
scarcity of these funds that the Punjabis used to dip in. As it is,
the NRIs always have some doubt about the way funds are spent in India.
Naturally, they will be doubly careful before sending money at a time
when immediate needs closer home will require a monetary response.
There has always been a close relationship between
the progress of the Diaspora and the progress of Punjab. It is generally
believed that in many countries Punjabi migrants have higher income
levels than the average Indian migrant, who in turn have a higher income
level than the national average of host countries. The Punjabi migrants
maintain their own cultural and linguistic heritage and preserve their
links with the families in Punjab. In times of meltdown and jobs on
the line, Punjab is clearly set to feel the heat from the troubled US
markets.
