PIOs in Other Developed Countries
The majority of Indian immigrants to the United Kingdom hail from Punjab and Gujarat. They are, by and large, prosperous and even dominant in certain sectors of economic life such as cash and carry stores or as retailers. A significant percentage of medical doctors, and specialists are from the Indian community. The induction of more affluent and entrepreneurial Indians from East Africa has also contributed in increasing economic profile of the Indian community. Indians control over 40% of the pharmaceutical retail trade in the UK. In services, Indian owned companies are influencing the Indian IT and Biotech exports.
Communities in Other Countries
Malaysia: Indians from about 7% of the total population and number about 1.6 million. The exports from India to Malaysia have grown at an annual average rate of 28% during the 1990s. The Indians in Kuala Lumpur and the surrounding regions have made significant contribution to economic life of Malaysia.
Singapore: The community numbers around 220,000, with about 64% being of Tamil origin. An indication of upward mobility among Indians till the mid-eighties was the increase in the proportion of the community employed in professional, administrative and managerial sectors, and the corresponding decrease in the traditional sectors such as agricultural labour, transport and publicworks.
Australia: The Indian community, numbering about 140,000, includes a number of persons working in high technology areas. IT manpower export from India to Australia has already started and a large number of Indian students are pursuing advanced courses in Australia. There is considerable scope for cooperation with Australia in the field of Information Technology and other knowledge based industries.
Diaspora and Direct Trade
The Diaspora creates demand by specialized consumption. The Indian community, particularly business executives and professional, whose opinions are sought and respected in their adopted country, have often helped introduce new Indian products and companies to make a breakthrough in those markets. It also impacts the local market trends by a demonstration effect and encourages the use of the product and of the brand name amongst the local populace. This is well illustrated by the introduction of Alphonso mango and its subsequent popularity in UK. In addition, members of the Indian Diaspora in most countries are well entrenched in the wholesale and retail sale markets and have widespread networks of contacts.
NRI Investment
Levels and Patterns
It is learnt that the total cumulative Foreign Direct Investment approved by the Government since 1991 is nearly Rs. 233,657 crore and the actual inflows add up to Rs. 82,708 crores. Out of 17,919 approvals during 1999-2000, there were 6468 technical approvals and 11,433 financial approvals.
Direct Investment
Progressive liberalisation of foreign direct investment policy has narrowed the differences between facilities available for NRI investment and foreign direct investment. Further liberalization in FDI policy announced in may 2001, make policy for investments in banking sector uniform for NRIs and other foreign investors. Development of integrated townships has also been opened up for other foreign investors.
Diaspora and Tourism
Diaspora can make significant contribution to growth of tourism in India. The PIOs make frequent visits to their home state or visiting relatives. The committee notes that in the US, the people of Gujarat have acquired a reputation for establishment of motels and budget priced hotels. The Committee recommends that suitable schemes should be devised to attract them into setting up establishments, with similar facilities in India. Indian-origin travel agents can be motivated to promote tourism to India in a big way.
The Committee also observes that a pressing need in this context is tourism publicity. Cost effective publicity can be made through display of Indian tourism posters and publicity materials in motels spread across America and run by members of the Asian American Hotel Owners Association. Video presentations on Indian tourism in the lobbies and public areas of such hotels/motels would be another useful and low-expense proposition.
The Committee also recommends that there should be greater focus on promoting tourism among the second generation PIOs. Special tour packages, pilgrim packages and packages tailor-made for this group of Diaspora need to be developed and publicized. Increasing of air seats capacity, bringing down airfares and improving service on our national carrier, rationalizing entrance fees to ASI monuments are some of the other steps for immediate implantation.
It says that the Government may consider issuing an Indian Credit Card, which could be made available to the Diaspora through Indian banks abroad. The transactions made through the Credit card could be linked to some national projects, and a token sum could go to this project for every transaction. This would encourage Diaspora’s participation in and identification with India’s economy.
—Empire Bureau |
