At the inauguration of the 6th annual Pravasi Bharatiya Divas here on Tuesday, Prime Minister Manmohan Singh said:  “While much of the investment required for economic development would have to be raised domestically, it is our sincere desire to create a framework which will provide profitable opportunities for overseas Indians to invest in India’s development. It is also our sincere desire to benefit from the vast reservoir of technological, managerial and entrepreneurial skills represented by overseas Indian communities.” Dr Singh impressed upon a thousand delegates attending the latest edition of the annual event that the conditions were better than ever before, for India to realise the goal of 9-10 per cent annual economic growth rate during the 11th Plan period and this provided an ideal opportunity for Indians overseas to invest in the country’s economic development profitably.
The PM proposed to set up an “India Development Foundation” to which, overseas Indians can contribute to raise a fund for investment in education, health and rural development in specific areas – villages, districts and states. The fund could be operated in partnership with “credible” NGOs. Dr Singh also proposed to set up a Global Advisory Council of PIOs to advise the Indian Prime Minister on issues that concern India and overseas Indians at the international level.
The investment pitch by the PM assumed significance as there is generally a conviction in the Government that overseas Indians can invest much more in the Indian economy than earlier. The proportion of investment by overseas Indians in the overall annual FDI that flows into India at present is just about 5 to 6 per cent. On the contrary, investment by the Chinese overseas into China in one particular year is estimated to be as much as 65 per cent of FDI flows of China.