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Statistics on Indian diaspora

Modi must move beyond mere rhetoric and usher in changes

OFFSHORE STRENGTH… Indians in the United States listen to Prime Minister Narendra Modi at a community reception in New York. — AFP

Few Indian premiers have engaged so actively with the country’s diaspora — a 25-million strong demographic entrenched in all corners of the globe — than Narendra Damodardass Modi. Storming to power with a historic mandate last summer, Modi’s chances at the top job were bolstered no doubt by planeloads of Non-Resident Indians (NRIs) who not only flew down thousands of miles from their adopted homes to vote for him in India, but also bankrolled his campaign. His party’s coffers generously endowed, Modi was able to galvanise his rank and file to trounce the ineffective UPA government.

There’s no doubt that the economic heft of the powerful NRI community has always played a pivotal role in boosting India’s economy, especially its foreign exchange reserves. Remittances from NRIs to family, friends or relatives in India are the highest in the world. The figure stood at $70 billion in 2013-14, accounting for over four per cent of the country’s GDP, the highest amongst countries receiving remittances from overseas workers.

For many expats, Modi is the antithesis of a powerless and inefficacious Manmohan Singh and represents decisive action and can-do fervour, qualities that India needs to achieve status as a world power. Ever since he came to power, the PM has been leveraging the support of the expat community to redefine its role in powering the India growth story. He has requested them to invest in India, help clean up the Ganges and generally support the India cause.  .  

The peripatetic leader’s high-profile outreach to NRIs was most visible during his overseas trips, especially to the United States and Australia. Modi’s speeches received a thunderous response from the expats. In Madison Square Garden, over 20,000 NRIs from across North America congregated to hear him speak. In Australia too, a similar number flocked to Sydney’s Olympic Park to cheer him loudly.

Of course, not all overseas Indians are enamoured of Modi. Many feel he is dictatorial, has built his power on exclusion and violence rather than democracy, pluralism and espousal of human rights. He also remains controversial and polarising. Whether the PM will ever be able to convert his overseas critics remains to be seen. But what counts now is that he has at least begun the process of engaging them meaningfully in the task of nation building.  

Adding further heft to this engagement is the Centre’s recent decision to implement the Election Commission’s recommendation to allow NRIs to vote from overseas through postal ballots. Given the strength of the expat community, this move will undoubtedly reshape the contours of India’s electoral politics in significant ways. In an increasingly globalized world, the concept of nationality is fast being dissociated from geographical locations to emphasise increased citizen participation.

However, to remain engaged with this group, Modi must move beyond mere rhetoric. He must usher in tangible changes in policymaking to make NRIs willing stakeholders in India’s progress. Modi recently told NRIs at the Vibrant Gujarat business summit “now opportunities await you in India; times have changed.” The PM must put his money where his mouth is. 

Measures such as facilitating hassle-free travel, electronic travel authorisation and granting expats visa on arrival would be a good start. Ensuring greater ease of doing business in India by removing regulatory hurdles and procedural logjams, and granting faster approvals for setting up businesses will create a thriving ecosystem for NRIs to invest more money into the country.

Currently, India is ranked 142nd out of 189 countries by the World Bank in terms of ease of doing business, down from 140th place in 2014. To get power a business needs to operate, takes seven steps and an average of 67 days in India. In Singapore, this was wrapped up in four steps and 31 days. Modi will need to significantly improve these kinds of statistics if he is eyeing NRI investments. 

Neeta Lal is a freelance journalist based in New Delhi