FICCI’S DIASPORA DIVISION TARGETS A TENFOLD INCREASE IN FDI INFLOW FROM INDIAN DIASPORA TO US $5 BILLION BY 2008

GLOBAL ADVISORY BOARD FORMED

FICCI has initiated an action plan to bring about a tenfold increase in FDI inflow from the Indian Diaspora to US $ 5 billion by 2008. To achieve this objective FICCI has launched a new division to service and leverage the global network of NRIs/PIOs. The Division would work in partnership with the Ministry of External Affairs in particular and the Government in general to forge a constructive and productive relationship with the Indian Diaspora.

An Advisory Board comprising of eminent leaders of the Indian Diaspora has been constituted to interact with and guide FICCI’s Diaspora Division. Mr. Rajat Gupta, CEO-Mckinsey, The Lord Dholakia of UK and Mr. Narpat Bhandari of USA, TiE’s first global Chairman have already agreed to join the Advisory Board. The Lord Bagri of UK, Mr. Bob N Harilela of Honk Kong, Dr. Manu Chandaria of Kenya, Mr. Kanaksi Gokaldas Khimji of Oman, Prof. C K Prahalad of US and Padma Bhushan Swadesh Chatterjee of USA have been approached and are expected to join over the next few days. More such eminent leaders of the Diaspora from different fields would be invited to join the Advisory Board in the near future.

FICCI’s Diaspora Division would specifically focus on strengthening the commercial and economic dimensions of India’s relations with the Diaspora.

FICCI has constituted a special committee comprising of eminent Indian business leaders to oversee the activities of its Diaspora Division. The Committee which has already started functioning is chaired by Mr. AK Purwar, Chairman, State Bank of India and co-chaired by Mr. Rajeev Bakshi, Chairman, PepsiCo India Holdings Pvt Ltd.

Dr. L M Singhvi, Member of Parliament and Chairman, High Level Committee on Indian Diaspora has kindly agreed to be the Chief Patron of FICCI’s Diaspora Division.

FICCI’S Diaspora Division would create specialized networks across sectors and countries to leverage the Diaspora’s strengths for India’s economic growth and development, just like China’s bamboo network of overseas Chinese has played a significant role in China’s economic transformation. For instance about 65% to 80% of China’s current FDI of
over US $ 40 billion comes from the overseas Chinese. In contrast, India’s Diaspora contributes less than 1 % of the current FDI inflows into India of around US $ 4 billion.

FICCI aims to raise the current inflow of Diaspora FDI tenfold from less than US $ 500 million to US $ 5 billion by 2008 AD Special Economic Zones for investment by people of Indian origin can be planned with some special concessions (fiscal and others) and infrastructure facilities. This can substantially enhance FDI inflow into India from its Diaspora.

FICCI would also work towards raising the inflow of overseas Indian savings into India. Estimates are that annually overseas Indian individuals invest US $ 24 billion in bank deposits, shares and bonds but India only attracted about US $ 3 billion of these savings in 2002. FICCI would like to double this figure within three years.

FICCI is well positioned to create specialized networks across sectors since it has already compiled a huge database comprising thousands of associations & chambers of Indian origin as well as individuals, corporates, business leaders and professionals spread over 75 countries. It was only with the help of this database that FICCI was able to mobilize a record participation of nearly 2000 NRI/PIO delegates from 61 countries. This database is being constantly updated online with the help of a specially dedicated portal that FICCI has created for Pravasi Bharatiyas.

FICCI would also create a network of mapping of skills and technologies available with the Diaspora and work with Central and State Government to increase their inflows into India.

In addition, FICCI would also leverage strong marketing networks of the Diaspora across the globe to promote exports of Indian goods and services both among Indian communities and their host countries. For example, each of the 10,000 curry-houses in the UK is a customer of Indian spices, food products, handicrafts and even culinary talent.

FICCI’s Diaspora Division in cooperation with its Socio Economic Development Foundation (SEDF) would tap the growing interest among NRIs/PIOs to increasingly contribute to India’s social development through voluntary action and charity.

The Diaspora Division would work in tandem with FICCI’s Committees in a number of sectors such as Pharmaceuticals and Healthcare, Education, Information Technology, Biotechnology, Entertainment, Media, Tourism,
Financial Services and Science and Technology, to increase Diaspora’s contribution to these sectors and also enhance two way exchanges between Indian companies & commercial entities of the Indian Diaspora based abroad.

FICCI’s Diaspora Division has already launched its operations by working on an Action Plan drawn from the recommendations and suggestions emerging from various plenary and sectoral sessions of the first Pravasi Bharatiya Divas held in New Delhi on January 9-11, 2003. FICCI aims at implementing this Action Plan in partnership with the Government of India before the Second Pravasi Bharatiya Divas is organized in January, 2004.

FICCI’s Diaspora Division aims at playing a key role in strengthening the processes unleashed by the first Pravasi Bharatiya Divas to create a sustained multi-dimensional and constantly growing relationship between India and its 20 million strong Diaspora spread across 110 countries.