A Perspective on the Indian Diaspora Confusion, Challenges, Opportunities.Presented By:Ravi Sidhoo, Head of Global South Asian BusinessKBL European Private Bankers15 May 2013
What will we not talk about?
What is the Indian Diaspora?A generic term to describe the people who migrated from territories currently within the borders of the Republic of India. It also refers to their descendants.The Diaspora is currently estimated to number over thirty million, composed of "NRIs" (Indian citizens not residing in India) and "PIOs" (Persons of Indian Origin who have acquired the citizenship of some other country). Half a million PIOs growth, and half a million NRIs being added every year.
Current Footprint of the Indian DiasporaUKIndian Population 2.5m+Strong vibrant affluent communityMainly entrepreneurs, professionals. USAIndian Population 4m+Growth rate of 106% (1990-2000)Wealthy (highest of all immigrants)EntrepreneurialGeographic concentration (California and New York tri = 37% of the Indian-owned firms and 45% of Indian population). Indian businesses growing at double the pace (34% to 19% of overall US businesses)CanadaIndian Population 1.5m+2nd largest but fastest growing (95% till 2017)Middle East (UAE ,Saudi Arabia, Qatar, Oman)Indian Population 4m+, of whichUAE is the main market
UAEApprox 35% of the retail banking population is IndianApprox 25% of the commercial banking population is IndianAsia (HK, Singapore, Malaysia, Indonesia, Thailand, Philippines)Indian Population 3.5m+Historic presence and well entrenched in economyGrowth through recent migration of professionals and entry of multinational corporations
South Africa, Kenya, Nigeria, Ghana, Mauritius, Tanzania, Uganda)Indian Population 3.5m+Concentrated in South Africa (46%)Significant links in economy and wealthyLarge investments. by Indian corporate houses in recent yearsMauritius, IndiaMAR is a major booking centreStrong linkages with IndiaTotal remittances from Diaspora at $50B + and growingTotal NRI deposit base of $47B (9% CAGR from 2000)Strong outbound flows from Indian corporate housesAustralia, New ZealandIndian population 510k+Large growing Indian population mainly a NRI opportunity
How they got there?Pre independence (17th century until end of the British Raj)Indian merchants arrived in Russia in 1615In the 19th century workers migrated to British colonies, Mauritius, Guyana, Caribbean, Fiji, East AfricaGujarati and Sindhi merchants settled in Iran, Oman, Bahrain, Dubai, South Africa, South East Asia and East Africa.Started in 1890 in Canada with the British ArmyEarly 1900 in USA with British Army and traders during the Gold RushIn the 19th century to the UK with the East India CoPost IndependenceAfter the 1970s oil boom, numerous Indians immigrated to Gulf countries1990s IT boom attracted a lot of skilled Indian workers 1950-1960s Punjabis came to UK followed by East Africans in 1970s
Why is it relevant?
Political RelevanceUSAOver 25 elected officials on Indian originBobby Jindal, Governor of LouisianaNikki Hailey, Governor of South CarolinaSwati Dandekar, Iowa State Senator
CanadaOver 25 elected / former officials on Indian originBharat Agnihotri, Alberta Liberal MPRuby Dhalla, Liberal MPUjjal Dosanj, ex Liberal MP
UKOver 25 elected / former officials on Indian originKeith Vaz, Labour MPLord Dholakia, Liberal Democrat MPPaul Uppal, Conservative MP
Nearly 5,000 NRIs with networth more than USD 30M, Wealth-X 2011 Top 100 Indian names have combined Net Worth of circa USD280 Billion - Forbes India's 100 Richest, Special Report 2009The greatest concentrations of NRIs live in the US, UK, Canada and Australia Singapore, Hong Kong, UAE, Qatar and Bahrain are also emerging as new wealth hotspotsAt least 150,000 Indian millionaires live outside of India Cap Gemini Asia Pacific Wealth Report 2007.UK top 100 Asians ( 85% Indian) worth more than USD 70B. Asian Rich List 2012
USDoctors, IT Professional, Hotels / Motels, Property, PoliticsCanadaIT Professionals, Farmers / Land owners, Transportation, Property, PoliticsUK / EURetail, Pharmacies, Doctors, Professionals, Property, PoliticsMiddle EastProfessionals, TradersSouth East AsiaProfessionals, Traders, Politics
US Census 2010
There are 35000 Indian American doctors as per census 201072% are working out of which 66% are employed in managerial / professional specialities as compared to national average of 36%As of 2002 there were more than 233,000 US firms owned by Indian Americans71% hold a bachelors degree or higher as compared to the national average of 28%Per capita income of USD 88k in 2009 against national average of 50,221
Comparisons with India
Linkages with India
Remittances by Diaspora2012 remittances in USD Billions
What Do they want?
The Indian Diaspora is one of the most successful migrant populations in the worldWhile it has linkages with India, the Diaspora has an identity of its ownContributes approx. 40% of Indias forex reservesThe Diaspora is very evenly spread, especially when compared to the Chinese Diaspora which is primarily based in South East Asia. ( 35M out of 50M total)Success of the Indian Diaspora has played an important role improving the relations of India with rest of the worldGiven its smaller size and proximity to Europe, its easier to target the Indian Diaspora than domestic IndiaAny government policy targeted towards India will be boosted by collaborating with the Indian Diaspora
Ideas for CollaborationIncentives to invest in the local economyCultural Events held locally aimed at the Indian DiasporaTrade Missions targeting the Indian Diaspora in UK, USA, Canada, Middle East and building awarenessEncourage local bodies which represent the Indian Diaspora and aim at building awareness around key issues and challenges.Any policy incentive laid out for India would be boosted if also applicable to members of the Indian DiasporaAt the same time there could be policies targeted especially for the Indian Diaspora given their international characteristicsNo better local brand ambassador to India than members of the Indian Diaspora
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