The government is considering a slew of policy measures to create an attractive investment climate for non-resident Indians (NRIs) and people of Indian origin (PIO).Proposals being considered include issuing special infrastructure bonds, removing restrictions on repatriation of profits, eliminating needless licensing requirements and setting up of exclusive special economic zones.“The government is considering a number of measures to attract NRIs and PIOs to their roots and involve them in social and economic development of the country,” Ministry of External Affairs Secretary and Committee on Indian Diaspora’s member-secretary J. C. Sharma said.“It is likely that some of the measures will be announced during the inaugural session of the first ‘Pravasi Bharatiya Divas’ scheduled to be held on Thursday,” he said, hinting at the announcement of dual citizenship, fee reduction in PIO Card Scheme and an annual celebration of Pravasi Bharatiya Divas on January 9. The high-level committee was constituted in September 2000 under chairmanship of Dr LM Singhvi, Member of Parliament, to formulate a policy framework to leverage the strength of Indian diaspora.Proposals under consideration include setting up of SEZs, exclusively to attract investments from by NRIs and PIOs, he said. “The committee has suggested creation of a dedicated single-window set-up to provide consultancy services for overseas Indian investors and become a liaison point for getting various clearances to make it a success,” he added.In order to stop the high incidence of frauds in bank accounts of NRIs and PIOs, it is suggested that NRI deposits should be made directly by NRIs either in person or through bank transfers. A more foolproof power of attorney system should be developed and a fast-track mechanism should be instituted by India to resolve disputes concerning fraudulent transactions.The government is trying to sort out NRI grievances on investments in shares and debentures. “The problem lies in delays and procedural lapses and the committee has suggested a fast-track mechanism to address such complaints,” Sharma said.Other likely measures to boost investment sentiments include issuing special infrastructure bonds for attracting NRI and PIO investments on the lines of Israel bonds.“We could usefully adopt several laudable features of Israel Bonds Scheme. Extending fiscal incentives, such as reducing corporate tax rates to levels at or below competitive international levels, removing restrictions on repatriation of profits and eliminating needless licensing requirements would be extremely useful in attracting investment,” the committee suggested.A proposal to create a friendlier reception at the point of entry of the diaspora into India is also being considered. It involves simplifying procedures for immigration and customs clearances.
