Once upon a time, US dollars went a long way in India. Even weddings, long expensive in local terms, could be staged far more cheaply in India than in the US. Not any more. The wedding planners have arrived, and everybody wants a big extravaganza:

India’s burgeoning middle class – now 300 million strong – are turning weddings into showcases of their growing disposable incomes and newfound appetites for the goodies of the global marketplace.

The largesse has spawned an $11 billion wedding industry, growing at 25 percent annually and beginning to rival the US industry valued at $50 billion.

The minimum budget for a wedding ceremony is $34,000, say wedding planners, while the upper-middle and rich classes are known to spend upward of $2 million. (The average American wedding costs $26,327.) This doesn’t include cash and valuables given as part of a dowry. [Link]

The latest fad is to stage the whole shebang on pontoons, putting family and friends on a veritable flotilla of flaunted wealth

If you consider the fact that India’s middle class are those considered to be earning “$4,545 to $23,000 a year”, weddings are priced comparably to an Ivy League education in the US. To “help out” banks are offering specialized wedding loans (at high rates, I’m sure):

GE Money India has introduced an “auspicious” personal loan, a quick and easy loan exclusively for weddings. [Link]

India is the biggest net beneficiary of money sent home by migrants:

Officially recorded remittances worldwide exceeded $232 billion in 2005, with India receiving almost 10% of the amount ($21.7 billion). China came second with $21.3 billion, followed by Mexico ($18.1 billion), France ($12.7 billion), and the Philippines ($11.6 billion). [Link]

To put this into context, remittances worldwide are roughly the same as the GDP of Sweden, and remittances to India are roughly equivalent to the entire national output of countries such as Latvia or North Korea. India makes even more foreign exchange from sending its workers abroad than it does from exporting software.[Thanks Hammer_Sickel!] Remittances to India are roughly equivalent to the entire national economic output of Latvia. India generates more foreign exchange from sending its workers abroad than it does from software exports.

International flows of labor are now becoming economically critically, like flows of capital in the decade before before:

… remittances sent through informal channels could add at least 50 per cent to the official estimate, making remittances the largest source of external capital in many developing countries. [Link]

With the number of migrants worldwide now reaching almost 200 million, their productivity and earnings are a powerful force for poverty reduction. [Link]