By Laxman Kafle

Kathmandu, Nov. 24: Many people may not believe that Nepal, whose economy is heavily dependent on remittance sent in by numerous workers abroad, is a large source of remittance for India. But it is a reality.
Every year, tens of billions of rupees is remitted to India, both from formal and informal channels. However, only a small amount of money is found remitted to India through the formal channels, experts said.
According to Nepal Rastra Bank (NRB), the central bank of the country, around Rs. 10.8 billion went outside the country through the formal channels in the fiscal year 2018/19, up from Rs. 5 billion a year earlier.
In the first three months of the current fiscal year, around Rs. 1.31 billion was remitted abroad from Nepal.
"We don't have proper records of the remittance that goes to India and other countries through the informal channels, but we assume that billions of rupees go to India every year as many Indians are working here in different capacities, from vegetable vendors to senior managers in multinational companies," they said.
The World Bank report in 2015/16 said that around Rs. 350 billion goes to India from Nepal as remittance annually, the latter being a large source of remittance to India.
Many youths in Nepal spend money to learn the Korean language in the hope of flying to Korea as migrant workers. Others head to various countries of Middle East, Africa and Europe to work in precarious conditions. They, however, do not think of doing the same work at home.
Some 4.4 million Nepalis working abroad send in around Rs. 880 billion annually, almost 30 per cent of the GDP, in the form of remittance from different countries. But almost half of that amount goes to India and other countries, they said.
A large number of Indians are working in diverse fields in Nepal. Most goldsmiths, barbers, betel shopkeepers, plumbers and carpenters working here come from India.
In jewellery shops of Kathmandu and other cities, only a few Newar owners work themselves but many of them hire the Indian workers.
Of course, Nepal’s gold-jewellery business heavily depends on the Indian workers. Almost 80 per cent of the goldsmiths in Nepal are from the Indian state of West Bengal and they receive around Rs. 36 billion annually as their salaries, said Mani Ratna Shakya, former president of the Federation of Nepal Gold and Silver Dealers' Association.
He said that the entrepreneurs pay a minimum Rs. 5,000 monthly for the unskilled workers and up to Rs. 100,000 for skilled ones.
“If we are able to produce manpower by providing training, huge sum of money can be retained inside the country while creating additional jobs,” he said.
Over 1 million foreigners in construction sector
President of Federation of Contractors' Associations of Nepal, Rabi Singh, said that over one million foreign workers, mainly from India, are working in the construction field across the country.
"In my calculation, around 2.5 million labourers are working in construction field, and Indians make up about 40 per cent. Foreign workers take around Rs. 200 billion annually from the construction sector alone," he said.
We see many Indians constructing personal houses, working in factories and hydropower projects. Those who come to our homes to fit pipes, lay tiles and marbles are also from India, he said, adding that the Indian workers are fast and are known for quality works.
According to him, Indian contractors take building construction work in contract from them. Skilled workers on average get around Rs. 64,000 per month and the semi-skilled get Rs. 24,000 per month.
"Nepali workers are not willing to work in these and other sectors which compels us to hire the Indians. But they take up the same jobs abroad," Singh said.
NRB to conduct remittance outward survey
Executive Director of NRB, Dr. Gunakar Bhatta, admitted that billions of rupees go abroad as remittance through the informal channel.
He said that the NRB was planning to conduct a survey on
the remittance that went out from Nepal in the current fiscal year.
Dr. Bhatta conceded that large numbers of Indian workers are paid in informal ways, making it difficult to calculate the wages and salaries they were paid.
"The outflow of huge sum of money from Nepal through informal channel poses a challenge to accurately calculate the Balance of Payments as Nepal is counting remittance inflow in it but the outflow seems to have been overlooked," he said.
He said that the survey was a must which would support the policy makers to formulate appropriate policy to develop skilled human resource besides figuring out the exact amount of remittance outflow.
Economist Dr. Shankar Sharma said that a large number of Indian workers were working in various sectors and taking billions of rupees through informal ways.
Around 70 per cent skilled foreign workers are working in factories, jewellery business, manufacturing and construction sectors, he said, adding that it has been a big unfortunate for the country to depend on foreign workers even in the service sector.
Nepalis can work in construction and jewellery sector if provided training with coordination between government and the private sector, Dr. Sharma said.
"It is regrettable for the country to send billions of rupees in the form of remittance due to over dependence on foreign workers," he said.
Few Indians seek work permit
Strangely, the records maintained by the Department of Labour and Occupational Safety show only 12,462 foreigners have got permits to work in Nepal since the fiscal year 2069/70. Of them, very few Indians are working by taking the work permit, said Sanat KC, Director General of the Department.
A total of 1,981 foreign workers received work permit in 2018/19. Similarly, 741 foreign workers have received work permit in the first three months of the current fiscal year.
KC said that the tendency of Indians to work in Nepal by taking work permit is very low as compared to workers from China, Australia, Russia, France and Sri Lanka.