In a bid to attract investment from NRIs (non-resident Indians), India is considering introduction of “diaspora bonds” to facilitate greater inflow of funds in the infrastructure sector.
Overseas Indian Affairs Minister Vayalar Ravi said the government was examining longer-term investment instruments for overseas Indians so that the community could participate and benefit from India’s “growth story”.
“The bulk of diaspora investments are in portfolio investments of a short-term nature. We are considering longer-term investment instruments such as ‘diaspora bonds’ to provide opportunities for overseas Indians,” Mr. Ravi said addressing the 5th biennial diaspora conference.
Underlining the need for greater two-way engagement between India and its diaspora, Mr. Ravi said the government had initiated a number of steps to ensure greater participation of the community in the economy of the country. “Diaspora engagement is also seen in the strong surge in remittances back home, the return of many to live and work in India and in their increasing participation in India’s development,” he said.