GHAFTER VI!

AWARENESS AND AVAILING OF FACILITIES AND INCENTIVES

Introduction

An attempt has been made in the previous chapter

to analyse the investment made by NRIs in shares, and

debentures of the Indian companies. Analysis was also

extended to company deposits, units of UTI, etc. This

chapter attempts to discuss mainly the awareness and

availing of the facilities and incentives offered to NRIs.

Before discussing this aspect it would be better

to understand some of the main characteristic features of

the sample respondents such as age, education, religion,

occupation, income, country of residence, type and size of

the family, etc.

It is estimated that in all about 10 to 12 million

NRIs excluding persons of Indian origin with non-Indian

citizenship, are spread all over the world. Their

investment potential is substantial at around Rs.250 to 300

billions. However these NRIs form a heterogeneous group;

for instance, NRIs from West Asia constitute skilled and

semi-skilled workers who sought employment in the wake of

the oil boom, whereas, NRIs in developed countries are

highly qualified professionals like doctors, engineers,

software specialists, etc. While there are about 1.7 lakh

people of Indian origin in Kuwait, some 70,000 Indians live

in the USA making a significant contribution to America's

scarce pool of sophisticated skills and scientific and

professional knowledge.

The contribution of NRIs to India's development

has been of a varied nature. NRIs from West Asia, through

remittances, have contributed to boost the foreien exchange

reserves of the country. Roughly, the share of private

transfers from West Asia is more than a third of the total

invisible exports. On the otherhand, NRIs from the USA and

Europe, being highly professional and prosperous, make their

contribution to India's economic development in the form of

technology, and in managerial fields.

Of the total respondents of 132, 96.21 per cent

are presently Indian, i.e., still holding Indian Passport,

and the rest are of other nationality, though of Indian

origin. On studying their visits to India, it is found that

while about 91 per cent of the respondents visit India once

in a year, ~ i n e per cent of them visit once in a couple of

years either for personal or business purposes.

Country of Residence

For the purpose of analysis the 'Country of

residence' of the respondents has been discussed under four

categories, viz., 'A' (the USA and Canada), 'AA' (Asian

Countries including Saudi Arabia, Kuwait, Iraq, Iran,

Singapore, Japan, etc.), 'E' (European countries including

the U K , FRG, Switzerland, France, Italy, Sweden, Australia,

etc.), 'EE' (East European countries including the GDR,

Czechoslovakia, Hungary, etc.).

Age group-wise distribution of respondents

according to their country of residence reveals that a vast

majority of them are in the age group of '36 to 45 years'.

Analysis of their level of education shows that about 50 per

cent of the respondents who have education only upto the

level of 'Matriculation' live in 'AA' group countries.

Besides, the chi-square value also supports the significant

relationship between the country of residence and the level

of education, and that between the country of residence and

religion.

Occupation-wise distribution of the respondents

shows that a majority of them in 'AA' group countries are

employed as either 'worker or technician'. In contrast, a

huge majority of them who stay in 'E' and 'EE' group

countries work as doctors, engineers, supervisors, and

executives, Distribution of respondents according to income

shows that there is a significant relationship between the

country of residence and income of the respondents and also

the family size.

The distribution of respondents according to their

age and level of income shows that a majority of the middle

aged (36 to 45 years) group respondents earn an annual

income between Rs.30,001 and Rs.50,000. The chi-square

analysis reveals that there is a significant relationship

between the level of education and the income of the

respondents, and between the level of education and religion

as well. Further a significant relationship is also found

between the religion and reason for leaving India.

What follows is an analysis of the awareness and

availing of the investment facilities and incentives by the

respondents. For this purpose, the abbreviations 'A'

(Aware), 'NA' (Not Aware), 'AV' (Avail), and 'NAV' (Not

Avail) have been used for presenting the implications in a

precise manner.

Awareness and Availing of the Facilities According to Country of Residence, Religion, Age Group, and Level of In-

An attempt has been made to study the awareness

and availing of the investment facilities according to

country of residence of the NRI investors, and the results

are presented in table VI.l. The table reveals that a

T a a g VI.l

A.r renoeps aod A v a i l i o g of Faciltiee According to of Mi-, Religim,

Variables

Figures in Parentheses Denote total mean scores of percentages

Age Oruop, and ~esel of ~ t i c a

muntry of Residence

Religion

Age Croup

Level of Education

Source:

A

AA

E

EE

Hindu

Muslim

Cnristien

Sikh

Upto 35

36 to 45

46 8 above

Upto Matric

Degrees 8 FG Degrees

. Diploma & Tech. Degrees

Canputed fmn Survey

Total Mean

Awareness

A

17.5 (14.54)

18.3 (14.97)

6.31 (51.93)

22.4 (18.36)

59.7 (49.27)

21.8 (17.67)

17 (14.11)

2.28 (18.94)

20 (17.92)

79.9 (65.94)

19.4 (16.14)

17.8 (14.52)

59.7 (49.7 )

43.8 (35.8 )

Data

Scores

N A ----

0.5 ( 1.68)

3.7 (47.53)

3.7 (20.02)

2.6 (10.76)

---- 3.3

(11.27)

4.2 (55.46)

1 (5.11)

1.2 ( 8.15)

---- 5

(58.09)

5.1 (18.57)

0.6 ( 3.34)

4.2 (55.74)

1.3 ( 6.2 )

5.1 (18.05)

Availing

AV

12.3 (32.37)

9.5 (14.70)

22.4 (37.56)

4.4 (15.36)

27.7 (54.03)

8.3 (12.Rr4)

9 (19.97)

8.5 (13.4 )

8.8 (13.58)

31 (48.25)

13.6 (38.17)

---- 5.8 (7.77)

27.8 (56.27)

19.9 (35.96)

----

NAV

5.7 ( 6.45)

12.5 (17.44)

44.6 (48.76)

15.7 (17.36)

35.3 (38.83)

18.7 (34.32)

9 (9.21)

13.1 (18.32)

18.1 (23.98)

54 (58.78)

6.4 ( 7.24)

16.2 (23.19)

33.2 (34.75)

29.1 (32.07)

majority of the respondents who belong to ' A A ' group

countries are very well aware of the investment facilities;

the mean scores value of the respondents alone accounts for

17.5. The mean scores value of ttie res~ondents for 'EE'

group countries accounts for 22.4. However it is seen from

the 'country of residence1-wise classification that the

respandents who belong to ' E ' group countries lead among the

various categories, in the availing of the investment

facilities.

It is clear from the analysis that on an

aggregate, the mean scores value for the respondents who are

aware of the investment facilities accounts for 121.3; that

for those who are not aware of the schemes accounts for

10.7. On the other hand, the respondents, who avail and who

do not avail those facilities record respectively 53.5 and

78.5. However, it is seen that the NRERJFCNR bank account

deposits are familiar to all of the respondents irrespective

of their country of residence. It can be seen that out of

the total respondents contacted no one was unaware of the

NREH/FCNR bank account deposit. While all the respondents

avail themselves of the NRER scheme, only 9 respondents did

not maintain an FCNR account.

The table further reveals that all the respondents 1

who belong to 'EE' group countries are familiar with the

NRER/FCNR bank accounts and direct investments of both, '40

per cent' and ' 74 per cent" schemes. On the otherhand, NRIs

who stay in ' A A ' group countries know about all these

schemes excepting 2 respondents each who do not know the

non-repatriable direct investment schemes and company

deposits. However all of them did invest in government

securities.

It can be concluded that as far as the bank

deposit accounts are concerned, the respondents are aware of

the repatriable portfolio investment schemes whatever be

their country of residence. However, there is a significant

relationship between the country of residence and the

awareness of the other investment facilities, and it is

proved by the calculated value of chi-square (44.20) at 6

degrees of freedom at 5 per cent level.

An attempt has been made to identify the

relationship between religion and awareness of the

investment facilities of the respondents. It is also

observed from the table that all the respondents

irrespective of their religion are aware of the investment

facilities of bank account deposits, and they also avail

themselves of such facilities. It is seen that all the 63

'Hindu' respondents are aware of the existence of the

NRER/FCNR bank account facilities, and all excepting three

have availed themselves of such facilities. As far as the

'40 per cent' and '74 per cent' schemes are concerned the

same trend prevails with regard to the awareness of the

schemes; but only 20 and 38 respondents avail themselves of

the '40 per cent' and the '74 per cent' schemes

respectively.

The mean scores value for the data of 'Hindu' and

'Muslim' respondents show that 49.27 per cent and 17.67 per

cent respectively of the respondents are aware of those

facilities. While 54.03 per cent and 12.59 per cent (mean

Scores) respectively could invest in the available schemes,

38.83 per cent and 34.32 per cent of the respondents

respcctively did not invest in the available schemes. 14.11

per cent of the 'Christian' and 18.94 per cent of the 'Sikh'

respondents are aware of such facilities; 19.97 per cent

and 13.40 per cent of the respondents respectively actually

avail themselves of such facilities. So, it can be

concluded that there is an insignificant relationship

between awareness and availing of the investment facilities

among the religious groups of the respondents. It is also

proved by the computed chi-square value of 18.26 at 9


An attempt has been made to correlate the

relationship between the 'awareness and availing of the

facilities', and 'age-groups'. It is found (vide table VI.l)

that there is no difference at all in the awareness of the

bank account facility among all the categories of age group.

However, there are some differences in the availing of such

facilities. It is seen that out of 27 respondents, who come

under the age group of 'upto 3 5 ' , only 22 avail themselves

of the facilities, whereas out of 20 respondents who belong

to the same category of age group, only one does not avail

himself of the FCNR scheme of bank account facility. The

mean scores value of the respondents for the awareness of

the facilities shows that 17.92 per cent and 65.94 per cent

of them who belong to the age groups of 'upto 35' and '36 to

45' respectively are aware of the investment facilities.

16.14 per cent of the respondents of the age group of ' 46 &

above' are also well aware of such facilities. The mean

scores value of the respondents for availing such facilities

shows that 13.58 per cent, 48.25 per cent, and 38.17 per

cent of the respondents of the age groups of 'upto 3 5 ' , '36

to 4 5 ' , and ' 46 & above'respectively avail themselves of

such facilities. So, it can be concluded that there is some

difference among the age groups in awareness and availing of

the investment facilities. However it is proved by the chi-

square value of 13.29, at 6 degrees of freedom at 5 per cent

level, that there is an insignificant relationship among the

age groups as far as the awareness and availing of various

facilities are concerned.

Education is the main factor that determines a

person's ability, awareness and availing of facilities, etc.

It is observed from the analysis of data pertaining to

awareness nnd availing of the facilities and level of

education (vide table VI.l) that there is not much

difference among the respondents of their awareness of the

facilities whatever be the level of education. It can be

seen from the table that all of the respondents irrespective

of their level of education are aware of all such investment

facilities. Except a very few respondents all of them have

availed themselves of such facilities also.

The mean scores value of the respondents show that

14.52 per cent, 49.7 per cent and 35.79 per cent of them of

the categories 'upto Matric', 'Degree and PG Degree', and

'Diploma and Technical Degree' respectively are aware of the

facilities. On the other hand, 7.77 per cent, 56.27 per

cent, and 35.96 per cent (mean scores) of the respondents of

the said educational levels respectively avail themselves of

such facilities actually. The mean scores value of the

respondents also show that 4.2 per cent, 1.3 per cent, and

5.1 per cent respectively are not aware of such investment

facilities. So, it can be concluded that there is not much

difference among the kategories of educational level

regarding the awareness and availing of the investment

facilities. It is also evident from the computed chi-square

value of 9.35, that it shows insignificant relationship at 6


Awareness and Availing of Facilities According to Occupation, Level of Income, Duration of Stay Abroad, and Iteasons for Leaving India

Awareness and availing of facilities according to

the occupation of the respondents are analysed, and the

results are shown in table VI.2. It is observed from the

table that there is not much difference among the occupation

groups of the respondents regarding the awareness and

availing of such facilities. While almost all of the

respondents are aware and avail themselves of the NRER

account of bank deposit irrespective of their occupation,

there are few respondents who are aware of such facilities

but do not avail themselves of the FCNR account. With

regard to direct investment, the respondents who work as

either 'Supervisors & Executives' or 'Doctors & Engineers'

are well aware of such facilities; however, the category of

respondents of 'Supervisors & Executives' avail themselves

of such facilities better than the resp~ndents who serve as

'Doctors & Engineers'. The same type of climate also exists

in portfolio investment facilities in the case of these two

categories of respondents regarding the awareness and

availing of the facilities.

The mean scores value of the respondents who work

as 'Workers and Technicians' and 'Supervisors & Executives'

show that 16.69 per cent and 33.63 per cent respectively of

them are well aware of such facilities. On the otherhand,

T m VI.2

A d l i n g of Pacilties kcording to ~mrpaticm -1 of In-, m t i m Of

Variables

Figures in Parentheses Denote total mean scores of percentages

179

8-y Abroad and Reaams for Leaa'~-

Occupation

Level of I n c m

Duration of Stay Abroad

Reasons for Leaving India

Source:

Workers & Technicians

Supervisors & Executives

Dxtors & Engineers

Businessmen 8 Others

Upto Rs.30,000

Rs.30001to50,WO

Rs.50001 & above

Upto 3 years

4 to 6 years

7 8 more years

For Higher Studies

or Employment

For Business

For any Other Purpose

Qmplted from Survey

Total Mean

Awareness

A

20.8 (16.69)

40.4 (33.63)

31.4 (26.14)

28.7 (23.53)

12.4 (9.95)

52 (42.99)

56.9 (42.4)

11.4 ( 7.98)

61.7 (50.92)

48.2 (40.11)

17.4 (14.47)

60.1 (49.69)

29.7 (24.48)

14.1 (11.35)

Data

Scores

N A ----

5.2 (30.85)

0.6 (2.35)

0.6 (3.08)

4.3 (43.72)

4.6 (58.13)

3 (9.28)

3.1 (10.6)

---- 5.6

(58.87)

4.3 (18.71)

0.8 (2.42)

---- 0.6

( 3.28)

3.9 (20.75)

2.3 (13.65)

3.9 (42.31)

Availing

AV

7.3 (9.09)

18.2 (36.29)

17.2 (39.7)

10.8 (14.92)

5.1 (7.95)

18.6 (31.04)

29.8 (61.01)

3.9 ( 4.78)

19.6 (30.47)

30 (64.75)

9.5 (17.57)

30.7 (56.45)

8.6 (19.54)

4.7 ( 6.44)

----

NAV

18.7 (25.53)

22.8 (23.62)

14.8 (14.6)

22.2 (26.25)

11.9 (17.55)

36.4 (42.3)

30.2 (30.15)

13.1 (20.9 )

46.4 (51)

19 (18.09)

8.5 ( 8.34)

33.3 (33.42)

23.4 (25.28)

13.3 (22.96)

the mean scores value of the respondents shows that those

who come under the categories of 'Doctors & Engineers' and

'Businessmen & others' record 26.14 per cent and 23.53 per

cent for awareness of such facilities. So it is seen that

while there is much difference between the occupation

categories, 'Workers & Technicians' and 'Supervisors &

Executives' regarding the awareness of such facilities, that

between the categories 'Doctors & Engineers' and

'Businessmen & others'is rather small. However, the mean

scores value of the respondents for the said categories of

occupation shows that there is not much differences between

the two categories, 'Supervisors & Executives' and 'Doctors

& Engineers' in availing such facilities. At the same time,

not much difference is found between 'Workers 8 Technicians'

and 'Businessmen & others' in availing such facilities. So

it can be concluded that the respondents who work as either

'Supervisors & Executives' or 'Doctors & Engineers' avail

themselves well of the investment facilities than the other

occupation categories of the respondents. However, an

insignificant relationship is seen in the computed chi-

square value of 15.16 at 9 degrees of freedom at 5 per cent

level.

The income of the respondents may also influence

the awareness and availing of such investment facilities.

An attempt has been made to identify the influence of income

in this regard. It is inferred from the analysis (vide

table VI.2) that there is no influence of income on

awareness and availing of the bank account facilities,

whereas, it has a small influence on awareness of direct and

portfolio investment facilities. Accordingly three

respondents are not aware of the '40 per cent' and '74 per

cent' schemes of direct investment facilities. However the

'middle and upper income group' respondents are well aware

of all the investment facilities except a few schemes. So,

it can be understood that there is some influence of income

on awareness and availing of such investment facilities.

The mean scores value of the respondents who come

under the income brackets of 'upto Rs.30,0001 and 'Rs.30,001

to 50,000' shows that 9.95 per cent and 42.99 per cent of

them respectively are well aware of such investment

facilities. On the other hand, 42.40 per cent of the

respondents who come under the higher income bracket are

also aware of the facilities. So, it is understood that

there is not much difference between the middle income and

higher income groups of the respondents regarding the

awareness of the facilities.

However, the lower income bracket respondents are

less in number regarding the awareness of the facilities.

The mean scores value of the respondents for the three

categories of income group (viz., lower, middle, and higher)

shows that 5.1 per cent, 18.6 per cent, and 29.8 per cent

respectively avail themselves of such investment

facilities. So it can be concluded that the level of income

of the respondents has a direct influence on the awareness

and availing of the investment facilities. However, the

computed value (13.27) of chi-square proves that there is an

insignificant relationship between the different categories

of level of income of the respondents regarding the

awareness and availing of such investment facilities.

An attempt has been made to estimate the

differences of the relationship between the 'reasons for

leaving India' and awareness and availing of the investment

facilities. It is understood that there is not much

difference between the different categories of 'reasons for

leaving India' regarding the awareness of the facilities.

It is seen that all of the respondents irrespective of the

'reasons for leaving India', are aware of the bank account

deposit facilities; the respondents who went abroad for any

other purpose, except for higher studies, employment, and

business, are not much aware of the direct investment

facilities.

The mean scores value of the respondents shows

that 14.47 per cent, and 24.48 per cent of the respondents

are aware of such investment facilities accordingly as they

went for 'higher studies' and for 'business' respectively.

Those respondents who went abroad for 'employment', or for

'any other purposes' record 49.69 per cent and 11.35 per

cent respectively regarding the awareness of such

facilities. So it can be said with confidence that the NRIs

who went abroad for either 'employment or business' purposes

are more aware of the investment facilities than the other

categories of the respondents.

On studying the availing of the facilities

according to 'reasons for leaving India', It is observed

that the respondents who went abroad for 'employment'

purposes avail themselves well of such facilities. It alone

records the mean scores value of the respondents at 56.45

per cent. While the mean scores value of the respondents

records 17.57 per cent for the respondents who went abroad

for 'higher studies', it records 19.54 per cent and 6.44 per

cent for 'business' and 'any other purpose' respectively.

So, it can be concluded that the respondents who went abroad

for employment purpose lead in respect of the awareness and

availing of such investment facilities. However, an

insignificant relationship is shown by the computed value

(11.89) of chi-square at 9 degrees of freedom at 5 per cent

level.

An attempt is also made to find out whether the

duration of stay abroad has got any impact on the awareness

and availing of the facilitles. The analysis reveals that

the respondents are aware of and avail themselves of the

bank account facilities irrespective of their stay abroad.

Almost all of them are aware and avail themselves of such

facilities. However, in the case of direct investments the

reactions are mixed, and it is seen that 51.16 per cent and

50.39 per Cent of the respondents who stay abroad for a

period of '4 to 6 years' are aware of the '40 per cent

scheme' and '74 per cent scheme' respectively. Only 10.85

per cent and 11.63 per cent' of the respondents who stay

abroad for a period 'upto 3 yearst are aware of such

investment schemes under direct investment facilities.

The mean scores value of the respondents reveals

that 7.98 per cent and 50.92 per cent of the respondents who

stay abroad for the periods 'upto 3 years' and '4 to 6

years' respectively are aware of the facilities, whereas

40.11 per cent record for the category of '7 and above

years'. Studying the pattern of availing of such

facilities, it is found that the respondents who stay abroad

for longer duration (7 & more years) avail themselves of the

facilities more than the respondents who stay abroad for

shorter duration. It is evident from the table that while

the mean scores value of 64.75 per cent shows that those

respondents who stay abroad for longer duration avail

themselves well of the facilities, the mean scores value

records only 4.78 per cent for the respondents who stay

abroad for shorter duration. So one can conclude that the

'duration of stay abroad' has a direct influence on the

availing of such investment facilities. It is also proved

by the computed chi-square value (31.12) at 6 degrees of

freedom at 5 per cent level that there is a significant

relationship between the categories of duration of stay

abroad regarding the awareness and availing of such

facilities.

Awareness. and Availing of Incentives and Concessions

The following paragraphs deal with the awareness

of and the availing of the incentives and concessions by the

NRI investors.

Awareness and Availing of Incentives and Concessions According to Country of Residence, Religion, Age Group, and Level of Education

An attempt has been made in table VI.3 to study

the awareness and availing of the incentives and concessions

according to the country of residence. The table reveals

'that the majority of the respondents who belong to ' E l group

countries are very well aware of the various incentives and

concessions offered. The mean scores value of the

respondents of this category alone records 49.87 per Cent.

The mean scores value of the respondents for ' A A ' group

countries and ' E E ' group countries records 15.81 per cent

and 18.19 per cent respectively. It is found that the

respondents belonging to 'E' group countries dominate in

Anueoess aad Availing of Incentives and Coooe88io~s Aaarding to b t r g of Besidaace,

Variables

~ i g u r e s in parentheses denote totdl mean swres of percentages.

186

Ueligim, Age Gmup aad Leven of Imcatim


Religion

Age Group

Level of Education

Source:

A

AA

E

EE

Hindu

Muslim

Christian

Sikh

Upto 35

36 to 45

46 & above

Upto Mntric

Cegrees & PC Degrees

Diploma B Tech. kgreos

~anputed fmm Survey

Total Mean

Awareness

A

16.79 (15.81)

17.86 (16.13)

56.86 (49.87)

20.29 (18.19)

57.07 (51.87)

18.71 (16.32)

16.43 (14.77)

19.57 (17.03)

16.79 (14.14)

76.29 (68.39)

18.71 (18.71)

14.5 (12.28)

56.14 (51.13)

41.14 (36.50)

Data

Swres

N A ----

0.79 ( 3.91)

2.29 (18.06)

3.43 (26.5 )

2.71 (22.96)

---- 1.79

( 8.8 )

5.43 (47.01)

0.29 ( 1.51)

1.71 (14.11)

---- 6.64

( 5 3 . 2 )

2.0 (13.84)

0.57 (17.47)

4.21 (35.81)

1.29 ( 8.74)

3.71 (26.88)

Availing

AV

13.5 (23.08)

13.86 (21.76)

33.57 (40.37)

11.79 (14.79)

39.5 (53.51)

9.71 (11.27)

12.93 (22.02)

10.57 (13.19)

9.93 (12.28)

45.86 (57.53)

16.93 ( 4.39)

---- 8

(10.84)

43 (63.94)

21.71 (25.21)

----

NAV

4.07 ( 7.27)

6.29 (12.25)

26.71 (47.71)

11.21 (25.63)

19.36 (26.06)

14.43 (38.12)

3.79 ( 6.27)

10.71 (22.41)

13.5 (37.53)

32.43 (51.16)

2.36 ( 4.17)

10.71 (26.18)

14.43 (19.07)

23.14 (47.61)

all the categories of the group of countries in respect of

the awareness of the incentives and concessions.

It is seen from the table that, on an aggregate,

the mean scores value for the respondents who are aware of

the incentives and concessions accounts for 111.79. The

respondents who are not aware of the incentives and

concessions account for 9.21. On the other hand, the

respondents who avail themselves of those incentives and

concessions and those who do not record 72.71 and 48.29

respectively. However, it is seen that two incentives viz.,

"balances on FCNR/NRER accounts are repatriable" and

"earnings on FCNRINRER accounts are exempted from income

tax" are familiar to all the respondents irrespective of

their country of residence. While all of the respondents

avail themselves of the 'higher interest rates', only a few

of them do not avail themselves of the special series of

cheque facility.

The table further aeveals that a majority of the

respondents are aware of the provision "risk of exchange

loss is protected in FCNR account", and an equal number of

respondents avail themselves of such incentives also. It

can be concluded that the respondents are aware of the

incentives,' irrespective of their country of residence.

Further, it is found that there is an insignificant

relationship between the 'country of residence' groups in

respect of the awareness of the incentives and concessions;

this is proved by the computed value of chi-square (5.44) at

9 degrees of freedom at 5 per cent level.

Also an attempt has been made to identify the

relationship between the religion and awareness of the

incentives and concessions. It is understood from the table

that there 1s not much difference between the religion

groups in respect of the awareness of the incentives such as

"balances on FCNRINRER accounts are repatriable", "interest

rates on FCNRJNRER accounts are higher", "local payments can

be easily debited to NRER account" and "special series of

cheque facility is available in NRER account". However, all

of the respondents do not avail themselves of such

incentives accordingly. It is seen that almost all 'Hindu'

respondents are aware of such incentives, whereas most of

the 'Muslim' respondents are aware of a part of the package

of incentives only, and almost all of the 'Christian' and

'Sikh' respondents are aware of such incentives.

The mean scores value of the 'Hindu' and 'Muslim'

respondents shows that 53.51 per cent and 11.27 per cent of

each category of the respondents avail themselves of those

incentives and concessions. While 22.02 per cent of the

'Christian" respondents avail themselves of those

incentives, only 13.19 per cent of the 'Sikh' respondents do

so. The figures of 6.27 per cent and 22.41 per cent of the

mean scores of the Christian and Sikh respondents

respectively show that they do not avail themselves of such

incentives and concessions. On the other hand, 26.06 per

cent and 38.12 per Cent (mean scores) of the Hindu and the

Muslim respondents respectively show that they do not avail

themselves of such incentives and concessions.

Though it seems to be much difference between the 'religion

groups' of the respondents in respect of awareness and

availing of such incentives and concessions the computed

value of chi-square (18.38) at 9 degrees of freedom at 5 per

cent level proves that there is an insignificant

relationship between the religion groups in respect of the

awareness and availing of the incentives and concessions.

An attempt has been made to correlate the

relationship between the awareness and availing of the

incentives and concessions and age groups. It is found from

the analysis that a majority of the respondents are aware of

such incentives and concessions. However, the 'middle age

group' respondents are well aware of the incentives and

concessions than their counterparts in the other age groups.

The mean scores value of the respondents shows that 14.14

per cent and 18.71 per cent of them who belong to the age

groups of 'upto 35' and '46 & above' respectively are aware

of such incentives.

The respondents who come in the age group category

of '36 to 45' record 68.39 per cent. On the other hand, the

mean scores value of the respondents shows that 12.28 per

cent, 57.53 per cent and 4.39 per cent of them who come

under different age groups, v l z . , lower, middle, and higher

respectively avail themselves of such incentives and

concessions. So, it can be concluded that there is a

significant difference of relationship between the different

age groups of the respondents in respect of the awareness

and availing of such incentives and concessions. It is also

proved by the computed value of chi-square (27.11) at 6


To identify the effect of education on the

awareness and availing of the incentlves and concessions, an

attempt has been made, and the results are presented In the

sald table. It is observed from the table that there is

much difference between the educational groups of the

respondents in respect of the awareness and availing of the

incentives and concessions. The mean scores value of the

data shows only 12.28 per cent of the category of 'Upto

Matric'. The corresponding figures for the categories of

'Degree and PG Degree' and 'Diploma & Technical Degree' are

51.13 per cept and 36.59 per cent respectively. The mean

scores value shows that 35.81 per cent of the respondents

who have studied 'upto Matric' are not aware of the

incentives, whereas, the percentage of the respondents for

the category of 'Degree and PC Degree' is only 8.74. The

corresponding figure for the category 'Diploma & Technical

Degree' records 36.59 per cent only.

The mean scores value of the data also shows that

there is much difference between the educational groups in

the availing of such incentives. It is seen that 10.84 per

cent of the respondents who have studied 'Upto Matric' avail

themselves of such incentives, whereas 63.94 per cent and

25.22 per cent of the respondents who come under the

categories of 'Degree and PC Degree' and 'Diploma and

Technical Degree' respectively avail themselves of such

facilities. liowever, the respondents who do not avail

themselves of such incentives record for 26.18 per cent,

19.07 per cent and 47.61 per cent respectively.

So, it can be concluded that the level of

education of the respondents has a direct influence on


However, the computed value (18.43) of chi-square at 6

degrees of freedom at 5 per cent level proves that there is

an insignificant relationship between the categories of

'different levels of education' in respect of the awareness

and availing of the incentives and concessions,

Awareness and Availing of Incentives and Concessions According to Occupation, Level of In-, Duration of Stay Abroad , and Reasons for Leaving India

To estimate the relationship between the

occupation groups of the respondents in respect of the

awareness and availing of the incentives and concessions, an

attempt has been made, and the results are shown in table

V1.I. It is understood from the analysis that there is not

much difference between the various occupation groups of the

respondents in respect of the awareness and availing of such

incentives and concessions. The mean scores value of the

respondents shows that 17.82 per cent of them who are

employed as 'Workers and Technicians' are aware of such

incentives. The mean scores value of 20.66 per cent shows

that the respondents who do 'Business and have been involved

in the business-related activities' are also aware of such

incentives.

The mean scores valdes of 33.4 per cent and 28.12

per cent show that the respondents who serve as either

'Supervisors or Executives' and as either 'Doctors or

Engineers' respectively are aware of such incentives.

However, the mean scores value of the respondents shows that

43 per cent and 30.48 per cent of them who belong to the

categories of 'Supervisors 8 Executives' and 'Doctors and

Engineers' respectively avail themselves of such incentives

and concessions. The mean scores value shows that 13.96 per

TMEE VI.4

A- sod Availing of Incentives rrnd Concea6ima According to Occupation, kvel of In-, m t i m of stay Abrmd,

and Reasms

Variables

Figures in parentheses denote t o t a l mean scores of percentages.

193

for Lea* 1rdi.e

occupation

Level of Income

Duration of Stay Abroad

Reasons for Leaving India

Source:


Supervisors & Executives

Doctors & Engineers

Businessmen & Others

Upto Rs.30,000

Rs.30001to50,000

Rs.50001 & above

Upto 3 years

4 t o 6 years

7 & more years

For Higher Studies

For bployment

For Business

For any Other P u r p s e

Canputed fmm Survey

Total Mean

Awareness

A

19.93 (17.82)

37.43 (33.4 )

30.21 (28.12)

24.21 (20.66)

9.93 (8.24)

45.93 (39.72)

55.93 (52.04)

10.07 ( 8.37)

55.5 (48.19)

46.21 (43.44)

17 (15.96)

59.21 (54.25)

23.71 (19.62)

11.86 (10.17)

Data

Scores

N A ----

3.36 (26.02)

0.29 (1.83)

0.79 (4.65)

4.79 (38.93)

---- 4.5

(43)

2.5 (17.45)

2.21 (10.98)

---- 4.07

(41.31)

3.21 (18.43)

1.93 (11.7 )

---- 0.71

( 4 . 8 4 )

1.64 (10.73)

3.71 (22.29)

3.14 (33.57)

Availing ....................

AV

10.07 (13.96)

28.36 (43)

20.64 (30.48)

12.21 (12.55)

4.57 (6.09)

27.57 (34.32)

40.57 (59.59)

5.79 ( 8.54)

34.93 (44.31)

32 (46.91)

11.21 (18.06)

39.64 (55.35)

15.5 (18.41)

6.3fi ( 8 . 1 9 )

----

NAV

11.79 (24.89)

9.36 (12)

10.36 (17.81)

16.79 (38.16)

9.86 (32.55)

20.86 (32.02)

17.57 (28.29)

8.36 (30.68)

23.79 (36.8)

16.14 (25.38)

6.5 (14.34)

21.21 (34.22)

11.93 (21.13)

8.64 (23.17)

cent and 12.55 per cent of the respondents who serve as

'Workers or Technicians' and as 'Businessmen or others'

respectively also avail themselves of such incentives and

concessions. The respondents i.n higher professions

(Supervisors, Executives, Doc'tors, and Engineers) are well

aware, and avail themselves of the incentives and

concessions more than the other occupation categories of the

respondents.

So, it can be concluded that there is some

difference between the different occupation categories of

the respondents in respect of the awareness and availing of

the incentives and concessions. However, an insignificant

relationship is established by the computed chi-square value

(18.25) at 9 degrees of freedom at 5 per cent level.

As it is found that the level of income of the

respondents has a direct influence on the awareness and

availing of the investment facilities, an attempt has been

made to identify the relationship between the different

levels of income of the respondents and the awareness and

availing of the incentives and concessions. It can be seen

from the table that the level of income of the respondents

has a direct influence on the awareness of the various

incentives and concessions. It is evident that the mean

scores value for the data shows that 8.24 per cent and 39.72

per cent of the respondents who come under the income groups

'upto Rs.30,000' and 'Rs.30.001 to 50,000' respectively are

aware of the incentives and concessions; the corresponding

figure for the category of 'Rs.50,001 8 above' is 52.04 per

cent. On the other hand, the mean scores value of the data

shows that 43 per cent and 17.45 per cent of the respondents

who come under the categories of 'upto Rs.30,000' and

'Rs.30,001 to 50,000' are not aware of the incentives and

concessions; the corresponding figure for the category of

'Rs.50,001 and above' is only 10.98 per cent.

On studying the awareness pattern in relation to

different levels of income, ~t is found that the higher

income group respondents benefit more than the other

categories. The mean scores value of the respondents shows

that 6.09 per cent, 34.32 per cent and 59.59 per cent of

them record for the categories in the order of lower, middle

and higher level of income groups respectively.

The respondents who do not avail themselves of the

incentives and concessions record for 32.55 per cent, 32.02

per cent and 28.29 per cent respectively. So, it can be

concluded that the level of income of the respondents has a

direct influence on the awareness and the availing of the

incentives and concessions. And it is witnessed by the

computed,value of chi-square (20.32) at 6 degrees of freedom

at 5 per cent level of significance that there is a

significant relationship between the various categories Of

income levels of the respondents in respect of the awareness

and availing of the incentives and concessions.

Verification of Bypothesis

H.1. NRIs' awareness and availing of incentives and

concessions depend significantly on their education,

occupation, and level of income.

Part (a) Relationship between 'Awareness and Availing of

Incentives' and Education.

Null Hypothesis: There is no relationship between awareness,

and availing of incentives and education.

TABLE VI .5

Chi-Square Distribution for Awareness and Availing of Incentives According to Education

Table Value 18.5 Calculated Value 18.43

Level of Education

Upto Matric

Degree B PC Degree

Diploma &Technical Degree

Awareness

A

14.5

56.14

41.14

Availing -------------------

NA

4.21

1.29

3.71

------------------- AV --

8

43

21.71

NAV

10.71 --

14.43 --

23.14

--

The computed value of chi-square under the said

null hypothesis is 18.43, and it is less than the table

value of chi-square at 5 per cent level of significance.

Hence, the null hypothesis is accepted. Therefore, the

conclusion is that there is no association or relationship

between awareness and availing of incentives, and education.

Par (b) Relationship between Awareness, and Availing of

Incentives and Occupation.

Null Hypothesis: There is no relationship between awareness,

and avalling of incentives and occupation.

TABLE VI .6

Chi-Square Distribution for Awareness and Availing of Incentives According to Occupation


Occupation


Supervisors % Executives

Doctors % Engineers

~usinessme'n 8 Others

Awareness

A

19.93

37.43

30.21

24.21

Availing -------------------

NA

3.36

0.29

0.79

4.79

------------------- AV --

10.07

--

28.36

20.64

12.21

NAV

11.79

9.36

-- 10.36

-- 16.79

--

The computed value of chi-square for the said

null-hypothesis is 18.25, and it is found less than the

table value of chi-square at 5 per cent level of

significance. So the null hypothesis is statistically

accepted. Hence it can be concluded that there is no

association or relationship between awareness and availing

of incentives, and occupation.

Part (c) Relationship between Awareness, and Availing of

Incentives and Income

Null Hypothesis: There is no relationship between awareness

and availing of incentives, and income.

TABLE VI .7

Chi-Square Distribution for Awareness and Availing of Incentives According to Income


Level of Income

Upto Rs.30,000

Rs.30,001 - 50,000

Rs.50,001 & above

Awareness

A --

9.93

45.93

55.93

Availing ------------------- NA

4.5

2.5

2.21

------------------- AV -- 4.57

27.57

40.57

NAV

9.86 --

20.86 --

17.57 --

The computed value of chi-square for the null-

hypothesis is 20.32, and it is found statistically higher

than the table value of chi-;quare at 5 per cent level of

significance. Hence, the null-hypothesis is rejected, and

an alternative hypothesis is framed.

Alternative Hypothesis: There is relationship between

awareness, and availing of

incentives and income.

Therefore, the conclusion is that there is a

significant association or relationship between awareness

and availing of incentives, and income.

H.2. NRIs are aware of and avail themselves of the

incentives and concessions irrespective of their

country of residence.

Relationship between Awareness and Availing of

Incentives, and Country of Residence

Null Hypothesis: There is no relationship between Awareness

and Availing of Incentives, and Country of

Residence.

The computed value of chi-square under the said

null-hypothesis is 5.44, and it is less than the table value

of chi-square at 5 per cent level of significance. Hence

the null hypothesis is accepted. Therefore the conclusion

TABLE VI .a

Chi-Square Distribution for Awareness and Availing of Incentives According to Country of Residence



A

A A

E

EE

is that there is no association or relationship between

awareness and availing of incentives, and country of

residence.

It is found that there is not much difference

between different categories of 'reasons for leaving India'

in respect of the awareness and availing of facilities.

Still an attempt has been made to understand the

relationship between 'the reasons for leaving India' and

'awareness and availing of incentives and concessions'. It

is understood that there is much difference between the

respondents who went abroad for 'employment purpose' and for

'any other purposes'.

Awareness

A

16.79

17.86

56.86

20.29

Availing ------------------- NA

0.79

2.29

3.43

2.71

------------------- AV -- 13.5 --

13.86

33.57

11.79

NAV

4.07

6.29 --

26.71 --

11.21 --

It is evident that the mean scores value of the

data shows that 54.25 per cent and 10.17 per cent of the

respondents who went abroad for 'employment purposes' and

for 'any other purposes' respectively are aware of the

various incentives and concessions. However the mean scores

value shows that the respondents are almost equally

distributed in the categories of the respondents who went

abroad for 'higher studies' and those for 'business

purposes'. The mean scores values are 15.96 per cent and

19.62 per cent respectively for the said categories. The

mean scores values of the respondents who are unaware of

those incentives and concessions for the categories 'higher

studies', 'employment', 'business' and for 'any other

purposes' record 4.84 per cent, 10.73 per cent, 22.29 per

cent, and 33.57 per cent respectively. It is understood

that there is much difference between the categories of 'any

other purpose' and 'higher studies' than between the

remaining categories of the respondents in respect of the

awareness of such incentives and concessions.

On studying the pattern of the availing of

incentives and concessions, it is understood that the

respondents who went abroad for 'employment purpose'

benefitted more than the other categories. This category

alone records 55.35 per cent mean scores value. The

respondents who went abroad for 'higher studies' and for

'business' purposes have benefited almost equally. However,

the mean scores value shows that only 8.19 per cent of the

respondents who went abroad for 'any other purposes' availed

themselves of such incentives. On the other hand, the

respondents who went abroad for 'business' and for 'any

other purpose' are equally distributed in the availing of

such incentives.

So it can be concluded that there is not much

difference between the said categories in respect of the


However, the individual cases differ from one another in

several respects. It is also evident from the computed

value (10.39) of chi-square at 9 degrees of freedom at 5 per

cent level of significance that there is an insignificant

relationship between the various categories of 'reasons for

leaving India' in respect of the awareness and availing of

the incentives and concessions.

An attempt has been made to bring out the

relationship between different durations of stay abroad, and

awareness and availing of incentives and concessions. It is

found that there is not much difference between the two

categories of "longer duration, viz., '4 to 6 years', and

'7 and mare years', of stay abroad" in respect of the

awareness and availing of incentives and concessions. It is

evident from the mean scores values of the data that 48.19

per cent and 43.44 per cent of them who stay abroad for ' 4

to 6 years' and ' 7 & more years' respectively are aware of

such incentives and concessions; the corresponding figure

for the category 'upto 3 years' records only 8.37 per cent.

The mean scores values of the respondents who are

not aware of such incentives and concessions record 41.31

per cent, 1 8 . 4 3 per cent and 11.7 per cent for the

categories of 'upto 3 years', ' 4 to 6 years' and '7 & more

years' respectively.

On studying the pattern of the availing of such

incentives and concessions, it is found that the,respondents

for the two categories of 'longer duration' are almost

equally benefited of such incentives and concessions

irrespective of their duration of stay abroad. The mean

scores value for the said categories respectively are 8.54

per cent, 44.31 per cent and 46.91 per cent. ilowever, the

categories of respondents who do not avail themselves of

such incentives and concessions differ from one another. It

is seen from the table that the mean scores values for the

categories of 'upto 3 years' and ' 4 to 6 years' are 30.68

per cent and 36.8 per cent respectively. On the otherhand,

the mean scores value for the category of '7 & more years'

is only 25138 per cent. It means that the 'duration of stay

abroad' has a direct influence on the awareness and availing

of such incentives and concessions.

However, it is found from the computed value

(13.22) Of chi-square (at 6 degrees of freedom at 5 per cent

level of significance) that there is an insignificant

relationship between the different categories of 'duration

of stay abroad' of the respondents in respect of the

awareness and availing of such incentives and concessions.

GHAFTER VI! -...

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