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REFERENCE NOTE For the use of Members of Parliament NOT FOR PUBLICATION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not for publication.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