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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REFERENCE NOTE For the use of Members of Parliament NOT FOR PUBLICATION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not for publication.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

80CCD(IB).

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offices and now, to further ease the process of joining, eNPS is being extended to Non-

Resident Indian subscribers.

NRIs (should be between 18 and 60 years can now open NPS Accounts online if

they have Aadhaar Card, or PAN card Till now, NRIs could open NPS accounts only

through paper applications by approaching Bank offices but this has now changed.

Through eNPS, a subscriber will be able to open an NPS account from the comfort of his

home. All he will need is an internet connection and an Aadhaar/ PanCard. Further, NRIs

will be able to open NPS accounts both on Repatriable and on Non Repatriable basis. On

a Repatriable basis, an NRI will have to remit the amount through his/her

NRE/FCNR/NRO account. For Non-Repatriable scheme, NRIs will be able to join NPS

through their NRE/FCNR/NRO accounts and at the time of maturity or during partial

withdrawl, the NPS funds would be deposited only in their NRO accounts. Both

Repatriable and Non- Repatriable schemes will greatly appeal to NRIs who intend to

return to India after their employment abroad, in view of their attractive returns, low

cost, flexibility and their being regulated by the PFRDA, a Regulator established by the

Central Government . Non Resident Indians (NRIs) can join and subscribe to NPS online

through eNPS.

(1) Online Services for Voters

A bill to extend the facility of 'proxy voting' to overseas Indians, on the lines of

service voters, was passed by the Lok Sabha on 9 August, 2018. Law Minister Ravi

Shankar Prasad said the provision would help non-resident Indians (NRIs) to participate

in the electoral process. Overseas Indians were free to cast their votes in the

constituencies where they were registered. The Bill seeks to give them the option of

proxy voting, which till now was only available to service personnel.

An expert committee of the Election Commission, working on the issue, had in

2015 forwarded the legal framework to the Law Ministry to amend the electoral laws to

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allow the overseas Indians to use proxy voting. The bill proposes to replace the term

'wife' with 'spouse', thus making the provision gender neutral.

(2) Overseas Citizenship of India Scheme

In response to persistent demands for "dual citizenship" particularly from the

Diaspora in North America and other developed countries and keeping in view the

Government's deep commitment towards fulfilling the aspirations and expectations of

Overseas Indians, the Overseas Citizenship of India (OCI) Scheme was introduced by

amending the Citizenship Act, 1955 in August 2005. The Scheme was launched during

the Pravasi Bharatiya Divas convention 2006 at Hyderabad. The Scheme provides for

registration as Overseas Citizen of India (OCI) of all Persons of Indian Origin (PIOs)

who were citizens of India on 26th January, 1950 or thereafter or were eligible to

become citizens of India on 26th January, 1950 except who is or had been a citizen of

Pakistan, Bangladesh or such other country as the Central Government may, by

notification in the Official Gazette, specify.

OCI is not to be misconstrued as 'dual citizenship'. OCI does not confer political

rights. The registered Overseas Citizens of India shall not be entitled to the rights

conferred on a citizen of India under article 16 of the Constitution with regard to equality

of opportunity in matters of public employment. Detailed instructions and procedures on

the OCI Scheme are available on the MHA's website: www.mha.nic.in .

As on 31st May, 2013 13.25 lakh OCI registration booklets and visa stickers have

been issued.

(4) Know India Programme

Know India Programme (KIP) is a flagship initiative for Diaspora engagement

which familiarizes Indian-origin youth (18-30 years) with their Indian roots and

contemporary India, through a three-week orientation programme organised by the

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Ministry. In 2016, the scheme was revamped to increase duration from 21 to 25 days,

with a 10-day visit to one or two States and preference given to PIOs from Girmitiya

countries. Since 2016, six KIPs are being organised in a year. For the first time, four KIP

groups (37-40th edition) participated in the Youth Pravasi Bharatiya Divas and the 14th

Pravasi Bharatiya Divas Convention from 7 to 9 January 2017 in Bengaluru. In the

current financial year 2017-18 four editions of Know India Programme (41st-44th )have

already been organised with the total participation of 160 PIO youths, 40 in each group.

Two more editions (45 &46th ) are scheduled to be organised from 29 January -22

February, 2018 and 12February-08 March, 2018. So far a total number of 1460 PIO

youths have participated in this programme, till 44th KIP.

An online portal (kip.gov.in) has been launched in 2017 exclusively for Know

India Programme. Indian-origin youth now submit their applications online for

participation in the KIP to the Indian Missions/Posts abroad. A maximum of 40 Indian

Diaspora youth are selected for each programme and provided full hospitality in India.

90% of the total cost of international airfare is also paid by the Ministry. The entire

process of applying, processing etc. is now through a portal (kip.gov.in).

(5) Scholarship Programmes for Diaspora Children

Scholarship Programme for Diaspora Children (SPDC) was introduced in 2006-07

to make higher education in Indian Universities/Institutes in different fields (except

medical and related courses) in India accessible to the children of overseas Indians

(PIOs) and Non- resident Indian students (NRIs) and promote India as a centre for higher

studies.

Under the Scheme, PIO/NRI students are awarded scholarship of up to US$ 4000

per annum for payment of tuition fee, admission fee and post admission services for

Under Graduate courses in Engineering, Technology, Humanities, Liberal Arts,

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Commerce, Management, Journalism, Hotel Management, Agriculture, Animal

Husbandry and some other courses.

A revamped SPDC was launched from academic year 2016-17 with extension

from 40 to 66 countries (including 17 ECR countries); enhancing number of scholarships

from 100 to 150 with 50 earmarked for Children of Indian Workers in ECR counties. Of

these 50 scholarships, 1/3rd are reserved for children of Indian workers in ECR countries

studying in India. The entire process of applying, processing etc. is now through a portal

(spdc.gov.in).

Scholarship is offered for pursuing courses in Central Universities of India

offering Under Graduate Courses, including those pertaining to Information Technology,

B.Sc (Nursing) and B.Pharma in Institutions accredited "A” Grade by NAAC; and

Institutions covered under DASA Scheme, National Institutes of Technology (NITs),

Schools of Planning and Architecture (SPAs), Indian Institutes of Information

Technology (IIITs) etc. Applications are submitted and processed through a portal

spdcindia.gov.in. Nearly 800 candidates were awarded scholarships since inception.

(6) Indian Community Welfare Fund (ICWF)

The Indian Community Welfare Fund (ICWF), set up in 2009, is aimed at

assisting Overseas Indian nationals in times of distress and emergency in the ‘most

deserving cases’ on a ‘means tested basis’. ICWF has also been a critical support in

emergency evacuation of Indian nationals from conflict zones, countries affected by

natural disasters and other challenging situations. In view of its immense utility, ICWF

stands extended to all Indian Missions and Posts abroad.

The ICWF guidelines have been revised further to make them more broad-based

and expand the scope of welfare measures that can be extended through the Fund. The

revised ICWF guidelines have become operational w.e.f. September 1st, 2017 following

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the approval of the Union Cabinet. They are expected to provide Indian Missions and

Posts abroad greater flexibility in swiftly addressing to requests for assistance by

Overseas Indian nationals. The revised guidelines cover the following three key areas:

I. Assisting Overseas Indian nationals in distress situations

II. Support for Community Welfare activities: Indian Missions and Posts abroad,

subject to availability of funds, may incur expenditure on community activities

pertaining to the Indian community.

III. Improvement in Consular services: Indian Missions and Posts abroad, subject to

availability of funds, may incur administrative expenses pertaining to schemes/welfare

measures etc.

(7) Pravasi Bhartiya Kendra:

The Indian Diaspora constitutes a significant economic, social and cultural force in

the world today. Overseas Indians estimated at over 28 million are spread across the

world. Their industry, enterprise, education, expertise and economic success are widely

recognized. A High Level Committee on Indian Diaspora, headed by Shri L. M. Singhvi,

had recommended in January 2002 that the Government must renew and strengthen

linkages of overseas Indians to their place of origin and with each other. The committee

recommended that a Pravasi Bharatiya Bhavan should be set up to emerge as the focal

point for networking between India and its overseas Indian community; and as a suitable

place which would commemorate the trials, tribulations, the evolution and achievements

of the Indian Diaspora Taking this recommendation forward in January 2004, at the

second Pravasi Bhartiya Divas (PBD) organized in Delhi, then Prime Minister Shri Atal

Bihari Vajpayee announced that the Government will set up the Pravasi Bhartiya Kendra

in New Delhi. The Foundation Stone of the Kendra was laid by the then P.M. Dr.

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Manmohan Singh at 9th PBD in January, 2011. Ground Breaking was done by then

Minister of Overseas Indian Affairs on 28.04.2011 and construction started in April,

2013. Contract for construction of PBK was awarded to National Building Construction

Corporation (NBCC) on turnkey basis. Pravasi Bharatiya Kendra located at the heart of

the Capital in Plots No.15A, 15B and 15D, Dr. Rizal Marg, Chanakyapuri, New Delhi is

a tribute to the overseas Indian community; and commemorates their migration to

various parts of the world, the challenges they faced abroad, their achievements and

contributions. Over time, the Kendra is expected to develop into a hub of activities for

sustainable, symbiotic and mutually rewarding economic, social and cultural engagement

between India and its Diaspora. Activities, seminars, events, workshops pertaining to the

Indian Diaspora are expected to be organized in PBK.

The Museum in the Kendra will depict the history of migration of the overseas

Indian community; their experiences and contributions. In the Kendra’s state-of-the art

auditorium, multi-purpose halls, Conference and seminar halls – workshops and

conferences with overseas Indians and on issues pertaining to them would be organized

on a regular basis. The Kendra will also house the autonomous bodies India Centre for

Migration, a think-tank working on issues pertaining to Indian migrant workers and the

India Development Foundation for Overseas Indians, a not-for-profit Trust promoting

contributions to flagship programmes in India. The Library in PBK is a valuable

repository of material about the Indian Diaspora including books written by overseas

Indians in different languages. With an emphasis on digital material, the library will

provide access to online journals and prestigious library resources.

(8) Students Registration Portal

The number of Indian students pursuing higher education programs abroad is

estimated to stand at nearly 6.5 lakhs. In order to collect data about the number of Indian

students abroad, courses they are pursuing and to enable a more effective grievance

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redressal mechanism, Ministry launched in July 2015, a portal (madad.gov.in/

appconsular /welcome link) for voluntary registration of Indian students abroad.

Database of students collected through the portal will also enable us to contact the

students in the event of an emergency.

(9) Regional Pravasi Bharatiya Divas (RPBD)

The Ministry organizes Regional Pravasi Bharatiya Divas (RPBD) periodically

outside India to connect with the Indian Diaspora in specific regions, familiarize them

with the policies and programmes of the Government, enable them to contribute to

India’s development and growth, and address their concerns.

The 8th Regional Pravasi Bharatiya Divas (RPBD) Convention was organized in

London during October 16 to 18, 2014 with External Affairs Minister leading the

delegation. The 9th Regional Pravasi Bharatiya Divas (RPBD) Convention was

organized in Los Angeles, California (USA) during 14 - 15 November, 2015 with

Hon’ble Minister of State for External Affairs, General V.K. Singh leading the

delegation. The 10th Regional Pravasi Bharatiya Divas (RPBD) Convention was

organized in Singapore at Marina Bay Sands, on 6 & 7 January 2018. This was a special

RPBD to celebrate the 25 years of strategic partnership between India and ASEAN. The

theme of the 2018 PBD Convention is "Ancient Route, New Journey: Diaspora in the

Dynamic India-ASEAN Partnership".

(10) Pravasi Bharatiya Divas Conferences

To re-energize our engagement with the Indian Diaspora and have a sustained

dialogue with them, the first ever series of ten PBD conferences were held from

February to November 2016 in New Delhi. Each conference saw participation of nearly

10 overseas Indian experts and an equal number of policy makers and stakeholders based

in India. The conferences were chaired by EAM or MOS(VKS) and co-chaired by the

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relevant GOI Cabinet minister as per the issue discussed. Each Conference submitted to

the Ministry a set of recommendations on the issue discussed – which was circulated to

concerned Government Ministries and stakeholders for their consideration and action.

(11) India Development Foundation of Overseas India (IDF-OI)

India Development Foundation of Overseas Indians (IDF-OI) is a not-for- profit

Trust which enables Overseas Indians to send contributions for implementation of social

and development projects in India.

IDF-OI’s mandate was revised in May 2015 to channelize contributions from

Overseas Indians towards National Mission for Clean Ganga; Swachh Bharat Mission,

and social and development projects by State Governments. Since its inception till

31.03.2017, IDF-OI has received a total contribution of Rs. 4.36 crore from Overseas

Indians which enabled construction of Community toilets in Vijayawada, Tirupati in

Andhra Pradesh; and a Public toilet in Amritsar (Punjab) through Municipalities, State

Govt agencies. Projects in 11 districts with funding from overseas Indians are under

implementation. To enable small and regular contributions to projects and to IDF-OI

Pool fund, an online Payment Gateway was launched on 31 July 2016. IDF-OI has been

closed down on 31 March 2018

Beside these Programmes the Ministry of External Affairs launches various other

Schemes/Programmes to engage Indian diaspora such as Know Goa Programme;

Pratishthit Pravasi; Bharat Ko Janay Online Quiz(BLJ); Pravasi Bharatiya Divas

(PBD) Convention. There are also scholarship programmes like GIAN (Global Initiative

for Academic Network), VAJRA Faculty Scheme which aims to bring a strong

international connect to the R&D ecosystem of India, Mission Shodh GANGA (Global

Alliance for New Generation Acceleration), Scholarship Programme for Diaspora

Children (SPDC) and Indian Technical and Economic Cooperation (ITEC) also.

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Conclusion: The Indian Diaspora today constitutes an important, and in some respects

unique, force in world culture. The diaspora can step up and act as Indian ‘ambassadors’,

as it is insufficient and ineffective for a country or its missions abroad to rely only on

press releases to change public opinion. The diaspora can provide the requisite strategic

impulse, which makes it all the more important to unlock their potential. The present

government is right in their focus on the diaspora engagement as they are a strategic

asset to India. Indian Diaspora community has been an important partner in India's

development.

References:

1) Ministry of External Affairs (https://www.mea.gov.in/overseas-indian-affairs.htm)

2) PIB (www.pib.gov.in)

3) Government archive (https://archive.india.gov.in/overseas/diaspora/nri.php

4) Economic Times Newspaper

5) The Guardian Newspaper

6) Orfonline Org.

7) PFRD Org (https://www.pfrda.org.in)