Abdul Raoof Palliparambil, Member: Loka Kerala Sabha

A weakening Indian rupee and a sharp rise in gold prices may pose challenges for India’s domestic economy, but for Non-Resident Indians (NRIs), the same trends offer a mix of financial opportunity and long-term security. For millions of Indians living and working abroad, especially in the Gulf, currency movements and gold valuations play a decisive role in savings, investments and remittances.

At the start of 2025, one Qatari riyal (QAR) was valued at ₹23.47. By December, this had risen to around ₹24.78, reflecting the Indian rupee’s decline against the US dollar. While the rupee has historically depreciated at an average annual rate of about 3% since economic liberalisation in 1991, the fall in 2025 was sharper, nearing 6%, with the real effective exchange rate declining by over 12% during the year.

Remittances have become an increasingly vital pillar of India’s external finances. According to the Reserve Bank of India (RBI), the country received USD 135.46 billion in remittances in the previous fiscal year, with inflows doubling over the past eight years and frequently surpassing foreign direct investment. For NRIs, a weaker rupee directly translates into higher purchasing power back home, making every unit of foreign currency sent more valuable.

One of the most immediate benefits for the diaspora is the increased rupee value of remittances. An NRI sending QAR 10,000 in December 2025 would receive roughly ₹13,200 more than at the beginning of the year purely due to exchange rate movement. Many NRIs are also turning to Foreign Currency Non-Resident (FCNR) accounts, which allow deposits and repayments in foreign currencies, offer tax-free interest and ensure full repatriation, while also supporting India’s foreign exchange reserves.

Loan repayments have also become easier for many overseas Indians. The RBI’s decision to cut the repo rate by 25 basis points has reduced EMIs on loans linked to external benchmark rates, including home and auto loans. With indications that an accommodative monetary policy may continue, NRIs with outstanding liabilities stand to benefit further from lower borrowing costs.

Beyond remittances and loans, a weaker rupee has made Indian goods more competitive abroad. In several GCC markets, prices of select Indian consumer products, including vegetables, have reportedly fallen by nearly 10%, offering relief to expatriate households and boosting demand for Indian exports.

Gold, meanwhile, continues to serve as a trusted safe haven for NRIs. India consumes between 700 and 1,000 tonnes of gold annually, and a significant share of this is held by overseas Indians, particularly from Kerala. Gold prices have surged from about ₹26,000 per 10 grams in 2015 to nearly ₹1,35,760 in 2025, delivering substantial gains with relatively low risk. Easily liquidated or pledged for loans, gold provides NRIs with financial stability, reinforcing the overall advantage created by a depreciating rupee and appreciating asset values.

The author is a member of Loka Kerala Sabha, Community Advisor - Ministry of Labour, Qatar, a Member of Kerala Economic Association and the Convener, Indian Community Benevolent Forum sub-committee for insurance, a convener of the Norka helpline in Qatar, organising secretary of the Gulf Air Passengers' Association.