1 MEMBERS REFERENCE SERVICE LARRDIS LOK SABHA SECRETARIAT NEW DELHI REFERENCE NOTE For the use of Members of Parliament NOT FOR PUBLICATION No.22/RN/Ref./November/2019 ENGAGING INDIAN DIASPORA (NRI’s AND PIO’s) IN NATIONAL DEVELOPMENT Prepared by Shri Abhishek Thakur, A.R.O of Lok Sabha Secretariat under the supervision of Shri Sayed Kafil Ahmed, Director and Shri R.C. Tiwari, Joint Secretary. The Reference Note is for personal use of the Members in the discharge of their Parliamentary duties, and is not for publication. This Service is not to be quoted as the source of information as it is based on the sources indicated at the end/in the context.
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MEMBERS REFERENCE SERVICE
LARRDIS
LOK SABHA SECRETARIAT
NEW DELHI
REFERENCE NOTE For the use of Members of Parliament NOT FOR PUBLICATION
No.22/RN/Ref./November/2019
ENGAGING INDIAN DIASPORA (NRI’s AND PIO’s) IN NATIONAL
DEVELOPMENT Prepared by Shri Abhishek Thakur, A.R.O of Lok Sabha Secretariat under the supervision of Shri Sayed Kafil Ahmed, Director and Shri R.C. Tiwari, Joint Secretary. The Reference Note is for personal use of the Members in the discharge of their Parliamentary duties, and is
not for publication. This Service is not to be quoted as the source of information as it is based on the sources
indicated at the end/in the context.
Engaging Indian Diaspora
(NRI’s and PIO’s) in National Development
Introduction:
Indian Diaspora1 (Pravaasee/प्रवासी) is a generic term used for addressing
people who have migrated from the territories that are currently within the borders of the
Republic of India. It constitutes NRIs (Non-resident Indians) and PIOs (Persons of
Indian origins). The Indian Diaspora is estimated to be over 30 million in over 200
countries and out of these 25% live in the Gulf countries.
Policymakers in the Asia-Pacific region increasingly recognize the value that
Diaspora populations bring to development efforts at home. The Government of India
also recognizes the importance of engaging the Indian Diaspora, as it has brought
economic, financial and global benefits to India2.
If Atal Bihari Vajpayee, during his 1998-2004 tenure, is credited with having
promoted serious engagement with the Indian Diaspora to develop mutually beneficial
linkages, current Prime Minister Narendra Modi is getting known for his enthusiasm in
expanding those earlier efforts. The prime minister’s initiatives in this arena have been
evident since the day he took office in May 2014, and it has been reflected in his public
pronouncements. In foreign trips and outreach activities with India’s expatriate
communities, he has always persuaded them to contribute to India’s growth story3.
1 Diaspora
1 is a word of Greek origin that means scattering or sowing of seeds. It is used to refer to people who leave their
native lands to live in other parts of the world for employment, business or any other purpose.
2Ministry of External Affair
3 www.orfonline.org
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How does the Diaspora benefit India:
The biggest way in which the Diaspora helps the economy is through regular
remittances. According to a World Bank report released in April, India was the largest
remittance-receiving country in the world, with an estimated $69 billion in 2017.This
amounts to a whopping 3.4 per cent of India’s GDP, an amazing multiplier because
just 1 per cent of the citizenry, which does not even live in the country, contributes
more than three times its fair share to the nation’s wealth.
There are other advantages which diaspora populations bring that are harder to
measure. When they visit India, they tend to spend more lavishly than the locals,
thereby helping economic activity. NRIs are more prone to donating to domestic
charities because of the strong cultural and emotional feelings that they nurse.
They bring technical and domain expertise to domestic startups and often act as angel
investors. Diaspora Indian faculty abroad volunteer time and resources to help faculty
on Indian campuses improve the quality of education — as in the case of member
institutions of the Indo Universal Collaboration of Engineering Education.
With a little commitment and some creative thinking, the government could double or
even treble the already substantial economic value of diaspora contributions by
carefully designing a set of policies to exploit the talent, industriousness and
patriotism of those living abroad.
Migration of skilled labours to foreign countries and their eventual success bolstered
the nation’s image.
A less tangible but important advantage in having a large emigrant group is “diaspora
diplomacy” and they act as “bridge-builders” between their home and adopted
countries.
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Engaging Indian Diaspora
The Government has instituted many revolutionary reforms for accelerating the
development of the country that offer tremendous gainful opportunities to Diaspora.
Government of India has over the last four-and-a-half years launched several measures /
programmes with scope of foreign/ NRI investment like Start-up India scheme, Make in
India project along with significant reforms to improve Ease of Doing Business,
Liberalization of FDI norms etc. The Government of India has given special focus on
disinvestment strategy which offers significant scope of investment to NRIs,
Overseas Indian Affairs Division of Ministry of External Affairs is dedicated to
the multitude of Indian Nationals settled abroad. Driven by a mission of development
through coalitions in a world without borders, OIA seeks to connect the Indian Diaspora
community with its motherland. Positioned as a ‘Services’ Division, it provides
information, partnerships and facilitation for all matters related to Overseas Indians
(comprising Persons of Indian Origin (PIOs) and Non-Resident Indians (NRIs).
Schemes and Programmes to engage Indian Diaspora
National Pension System (NPS4) for NRIs
NRIs have a pivotal role to play in the Indian economy. India has the second-
largest Diaspora in the world, with around 29 million people living Most of the Indians
going to the Gulf and some other countries go for employment and return to India after
having worked abroad for a certain period. NPS can provide a long term solution to their
old age income security. NPS has been available to NRIs for some time through Bank
4 National Pension System (NPS) account provides tax breaks of up to Rs 1.5 lakh under Sec 80C and Rs 50,000 under Sec