The United Arab Emirates-based Pravasi Bandhu Welfare Trust (PBWT) has urged Prime Minister Narendra Modi to offer more concession to Non-Resident Indians (NRIs) for bringing foreign exchange into the country.
In a memorandum to Mr. Modi, PBWT chairman K. V. Shamsudheen said that at present NRIs received a concession by way of tax exemption on interest from Non-Resident External account and Foreign Currency Non-Resident account deposits.
At the same time, foreign direct investment (FDI), foreign institutional investors, and exporters enjoyed more concessions.
He said that the Indian Diaspora had helped the nation by investing in India Development Bond, India Millennium Deposit and Resurgent Indian Bond and many projects such as Konkan Railway and Narmada Nigam when the country was facing an economic crisis.
2.5 times more
Mr. Shamsudheen said that NRI remittance was 2.5 times of FDI, 25 per cent of our export and 6 per cent of our Gross Domestic Product.
However, India was yet to take a leaf out of the Chinese model in utilizing its foreign remittance.
“China utilised economic resources, knowledge, expertise, experience, and business contacts of non-resident Chinese for national development. But India never made any such attempt,” he said.
Mr. Shamsudheen said the Indian Diaspora was estimated to be more than 30 million with diverse, heterogeneous and eclectic faction, representing different regions, languages, cultures and faiths.
Pool of knowledge
NRIs and People of Indian Origin have emerged as the largest pool of knowledge, skill, resources, and enterprise, acting as India’s brand ambassadors globally.
India is the second largest exporter of human resource in the world and is the largest receiver of Diaspora remittance at $75 billion, he said.
Mr. Shamsudheen urged the government to reinstate the 40 per cent reservation in public issues and give NRIs an opportunity to participate in initial public offerings. Recently this quota was withdrawn by the UPA government, he added.