Business Strategy

Homing in on NRIs

The conception of the Ministry of Overseas Indian Affairs itself reflects the stance the Indian government is taking vis-à-vis NRIs. Jyoti Koul looks at why they are looked upon as ambassadors for Indian tourism

It is estimated that about 25 million people of Indian origin are spread across 110 countries across the world. Non Resident Indians or NRIs are being looked upon as a sunrise community with the strength to take India and its tourism potential to greater heights.

According to Inder Sharma, an industry veteran, NRIs could be the best ambassadors of Indian tourism in their respective countries. "They could help create the right perspective and therefore help in enhancing the brand equity," which according to him is more important than NRIs investing in infrastructure. He says that they have to be natural born promoters adding, "They are our frontline marketers."

The special initiative by the current UPA government of setting up the Ministry of Overseas Indian Affairs (OIA) acknowledges the fact that the overseas Indian community is a significant force and needs mainstream attention. It is their knowledge, expertise and skill across a wide gamut of sectors that is being sought to transform ideas into individual initiatives as well as community action.

Tourism and NRI investment

How can the Indian diaspora boost Indian tourism? The answer lies in the investments that a large section of NRIs can make. Tourism that ensures maximum yields on minimum investment has already been identified as a top sector for NRI investment, followed by infrastructure and education.

With an objective to establish mutually beneficial engagements between India and its diaspora, the OIA ministry is acting as a catalyst to facilitate NRI participation. Oscar Fernandez, the Minister of State for OIA has extended an invitation to the overseas Indian community to be part of India's march towards progress. The government has blazed a trail for NRI investors by offering them incentive-based schemes in tourism related infrastructure and property developments. Following the Centre's recommendations, certain states such as Kerala, Karnataka, Goa and Maharashtra are working towards implementing incentive-based programmes for NRI investors.

The tourism industry, especially hotel property and infrastructure development, could be tremendously benefited from NRI investment. But the process has to be smooth. An industry analyst concurs, "We must have special systems in place like single-window clearance for NRIs and PIOs within the tourism sector."

Other efforts by the government to invite NRI funds is through the Pravasi Bhartiya Divas that recognises and appreciates the philanthropic role played by the Indian diaspora as well as the goodwill demonstrated by them in times of national crises. Ministry of OIA and UTI Bank have partnered to launch a Web-enabled Pravasi Bharatiya Seva (Financial Services for Overseas Indians).

Punjab: A case study

Sample this: A third of Indians living abroad have roots in Punjab. This translates into eight million people of Punjabi origin with a huge reservoir of resources and talent.

To harness this abundance of opportunity, IPCSI (International Punjabi Chamber for Service Industry) and Punjab's department of NRI Affairs organised Punjab Pravasi Divas for the first time in Chandigarh.

The two-day international convention was held to form a synergy between their rich resources and ideas with the efforts of the government to take Punjab to a higher economic growth trajectory. Dr Gulshan Sharma, secretary general, IPCSI said that an investment of Rs 5,000 crore was likely to be made by the NRIs in view of the overwhelming response that the event evoked. "More than 350 NRIs from 13 countries had participated in the convention. Punjab is probably the only state that has a department for NRIs and an NRI facilitation cell," he said.

The convention covered an array of segments with a focus on tourism, aviation and hospitality services - sectors that have vast potential for development in North India, particularly Punjab. Punjab chief minister, Captain Amarinder Singh says, "Punjab is fast becoming the best investment destination for NRIs. We wish to bring in Rs 1,00,000 crore as investments and create employment for nearly 10 lakh people." Among the many steps he announced to assist NRI investors include an emigration board, which would help NRIs in setting up businesses as well as in meeting challenges faced in re-settling in India.

The Punjab governor and UT administrator, General S F Rodrigues (Retd) made a plea to Indians settled abroad, particularly Punjabis, to invest in the Chandigarh Capital Region through partnership ventures with focus on social and rural transformation in Punjab. He assured them that a responsive system has been established to put in place a regulatory mechanism for facilitating the investment process.

He advised that areas with high tourism potential should be identified, airports and seaports improved and new and innovative steps be initiated for broadbasing the existing tourism product. In view of the vast potential for tourism development, the government would help reduce impediments so that NRIs would come forward to aid development in tourism and aviation projects.