The Indian Diaspora: An Untapped Asset

23 Jan, 2003    ·   958

Prafulla Ketkar calls for measures to tap the economic potential of the Indian diaspora
Prafulla Ketkar
Profound changes in the world political and economic order have generated large-scale movements of people in almost every region. In the process, the conventional meaning of diaspora has altered significantly. It is considered more a valuable asset for the home country not only for economic reasons but also for cultural and political reasons. The twenty million people of Indian origin, spread over fifty-three countries in the world, are not an exception. Though the Indian government had adopted some polices for utilising their resources for promoting cultural interests, there was scope for generating confidence about the future of a democratic and prosperous India among them to ensure their economic and political interests. The celebration of Pravasi Bharatiya Divas and conferring dual citizenship on people of Indian origin (PIO) living overseas are starting points in this regard.

 

 

The Indian diaspora has established a significant presence all over the world. Most of them were forced to migrate as labourers to serve colonial interests. Since 1991, with the beginning of economic liberalization in India and acquisition of major role in the knowledge-based industries, non-resident Indians (NRIs) have become influential all over the world. They have played a major part as India ’s cultural ambassadors. The celebration of Diwali or Navratri has become a common feature in many parts of the world inhabited by Indians. But there is need for greater interaction and deeper cultural relations through spread of Indian arts, knowledge and languages. For such activities, the diaspora committee has already recommended a British Council or Alliance Française model.  In the educational sector, the aspirations of the diaspora can be addressed through a multi-dimensional strategy, including building new residential schools, information and cultural centres, launching off-shore branches of IITs and IIMs. The Indian Council for Cultural Relations has to play a greater role here.

 

 

However, contemporary interest in the Indian diaspora, comprising PIOs and NRIs, has focussed on their economic potential. It is estimated that the Indian diaspora has an annual income of approximately US$ 300 billion, which equals India ’s national GDP. Unfortunately, the Indian government has failed to tap this potential for developmental purposes. While overseas Chinese contribute some sixty percent of China ’s FDI, NRIs account for only 4 percent of our total FDI and only 9 percent of actual foreign exchange inflows into the country. The main complain of the NRIs is that they want to invest in India but tariffs, stifling rules and regulations, and the Inspector Raj work as dampeners. It is unfair to assume that love of one’s homeland or cultural festivals will influence the investment decisions of the NRIs. The diaspora committee has recommended that the Indian Government should also consider setting up Special Economic Zones, exclusively for projects to be set up by the NRIs/PIOs.

 

 

There is no doubt that the Indian diaspora has helped enhance India ’s clout in the international sphere. There are at least three Prime Ministers, about 250 parliamentarians and twenty-eight ministers of Indian origin all over the world. The diaspora has also played a significant role in mobilising political support on vital issues of Indian national interest. During the Kargil conflict, in the aftermath of the nuclear tests, and on cross-border terrorism, Indians abroad have played their role to explain India ’s official position. The diaspora responded immediately with massive financial and material support to help the victims of the Gujarat earthquake and the Orissa cyclone.

 

 

Notwithstanding the appreciation they receive, PIOs should realise that they cannot be a part of the decision making process in this country since they are not its residents. In this respect the government should also take care that diaspora initiatives are not hijacked by political activists affiliated to certain political ideologies. The NRIs from the Gulf, who constitute the lion’s share of FDI in India , and the PIOs from East Africa and Southeast Asia , who are closer to India in terms of political and social consciousness, should not feel alienated in this process.

 

 

Science and technology, health, media and tourism are some other sectors where the potential of diaspora can be tapped. They have made us proud with their extraordinary contributions in their new homelands. Now the question is what we can do to make them feel proud about India as their ancestral land and contribute to its development in a meaningful way. Political and cultural initiatives, attractive tax concessions, lack of red tape and good infrastructure can stimulate the Indian diaspora to emulate the Chinese diaspora.

 

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