Confederation of Indian Industry Government of NCT of Delhi

OIFCOverseas Indian Facilitation Centre

CONTENTS

Introduction 1

Pravasi Bharatiya Divas 2007: Summary of Recommendations 5

PLENARY I: Social Development Challenges in India: Health & Education 6

Health 6

Education 9

CONCURRENT SESSION 1: Knowledge Economy 13

CONCURRENT SESSION 2: Culture 16

CONCURRENT SESSION 3: Challenges in Women Empowerment and Leadership 18

PLENARY II: Investment & Infrastructure 21

PLENARY III: Trade and Business Opportunities 25

PLENARY IV: Developmental Challenges of the States: Partnership Opportunities 27

PLENARY V: Diaspora Philanthropy : Empowerment of Rural Communities 29

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India is fortunate to have the second largestdiaspora in the world. People of Indian originnumber over 25 million and are spread in 110countries all over the globe. Their experiencesmake up a saga of heroic struggle, of single-minded determination, and of intense effort andhard work. In each segment of the world in whichthe Indian diaspora has made its home, it blendsin with the national ethos in a peaceful andproductive manner. At the same time, it standsout as a model community worthy of highrespect. Overseas Indians have helped bringdramatic changes to the economies of theircountry of residence and have contributed vastlyto knowledge and innovation. Their extraordinarycourage and enterprise, their sheer hard work,and their commitment to their inherent valuesand ethics is much lauded and appreciated byIndia. Truly, the impressive achievements of theIndian diaspora have made us, as a nation,proud.

Overseas Indians have always had strongumbilical attachment to their country of origin.This is reflected in their language, cultures andtraditions that have been maintained, often overcenturies, and continue to be vibrant and unique.It is now being witnessed in the popularity ofBollywood dance and music on foreign shores,in the surging remittances back home, and intheir increasing engagement with India’sdevelopment. The relationship between India andits children overseas has never been strongerthan today, and new dimensions in partnershipare evolving as it becomes ever more complexand multi-faceted.

The symbiotic connection of India and thediaspora works in both directions – thediaspora’s engagement with India as well as

India’s engagement with the diaspora. Thestrands of both sides of the relationship can befurther strengthened to create a resilient bondof robust exchange. Both India and its diasporacan actively leverage their ‘Indianness’ andcommon heritage to maximize their potential andgains. The dual process depends on vibrant andhealthy communication between the two sides,and involves vigorous interaction. Such aprocess of engagement of India and its diasporais of advantage not just to both participants buthas ramifications for the global arena. It is tostrengthen this process that the PravasiBharatiya Divas 2008 has as its theme ‘Engagingthe Diaspora: The Way Forward’.

The Ministry of Overseas Indian Affairs wasinstituted in 2004 to promote, nurture and sustainthe two-way relationship between India and itsdiaspora, in recognition of the fact that thediaspora has unique strengths and challengesto be addressed individually and holistically. Itworks to build a sustainable and mutuallybeneficial engagement between India and itsdiaspora. It focuses on creating a range ofmarket-oriented bodies with private sectorpartnership to address the different issues inthe engagement. It also seeks to involve theStates of India as a springboard for on-the-ground action. Thus the Ministry serves as aninstitutional mechanism to facilitate and promotethe interaction of India and the diaspora.

The Ministry is headed by Cabinet MinisterHon’ble Mr Vayalar Ravi. It is divided into fourfunctional divisions looking after DiasporaServices, Financial Services, EmploymentServices and Social Services. The Protector ofEmigrants oversees eight regional offices inIndia.

INTRODUCTION

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The Confederation of Indian Industry is a non-government, not-for-profit, industry-led andindustry-managed development organisation.Founded over 112 years ago, it is India’s premierbusiness association, comprising a directmembership of over 6500 organisations fromthe private as well as public sectors, includingSMEs and MNCs, and an indirect membershipof over 90,000 companies. CII works closelywith government on policy issues, and enhancesefficiency, competitiveness, and businessopportunities for industry through a range ofspecialised services and global linkages. It alsoprovides a platform for sectoral consensusbuilding and networking. It has partnerships withover 120 NGOs across the country for promotingintegrated and inclusive development, including,among others, initiatives in health, education,livelihood, diversity management, skilldevelopment and water. CII has a global reachthrough 8 overseas offices and institutionalpartnerships with 240 counterpart organizationsworldwide. It is well-positioned to act as a bridgebetween India and overseas Indians.

The Pravasi Bharatiya Divas was first held in2003, and seeks to build an institutional platformfor the communication and interaction of Indiaand overseas Indians. Over the years, it hasbrought together eminent PIO/NRI from all walksof life in a constructive dialogue with the IndianGovernment. It is attended by over a thousanddelegates from all over the world, includingpolitical leaders, businessmen andentrepreneurs, academics and intellectuals, andcultural personalities.

Many key initiatives have been inspired fromthis and other engagements, perhaps the mostformidable of which has been the OverseasCitizen of India card given to PIO, and theirspouses, who can claim an Indian ancestor upto great-grandparent level. Several administrative

and procedural issues have been sorted outthrough the years, and problems addressed.

Some of the prominent initiatives taken by theGovernment include:

– Institution of the Pravasi Bharatiya SammanAwards to honour outstanding contributionsby PIO in their home country

– Establishment of an Overseas IndianFacilitation Center in partnership with theCII

– A PIO university to be established

– Know India program for young PIO

– Counseling offices to be opened foroverseas workers and Council for Promotionof Overseas Employment approved

– Indian missions abroad to have officersdealing with issues of overseas Indians

PBD 2008 seeks to carry forward these initiativesand strengthen partnerships for the economic,social and cultural engagement of overseasIndians with India.

Social and cultural engagementIndia’s development story is today fast-pacedand rapidly evolving. High growth of the pasttwo decades has resulted in a class of wealthyentrepreneurs, and the number of High NetWorth families, or dollar millionaires, has crossed100,000. Yet a large chunk of the populationstill exists on less than a dollar a day, and haslittle access to employment, education and healthfacilities that would enhance their productivity.

In recent years, the Government of India hasbeen able to substantially increase spending onsocial issues, addressing particularly vulnerablesections of society. It has set for itself impressivetargets in accordance with the MillenniumDevelopment Goals of the United Nations which

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are to be achieved by 2015. Large-scaleprograms such as the universal primaryeducation mission - the Sarva Shiksha Abhiyan- the mid-day meal plan, or the National RuralHealth Mission are providing succor to millionsof children and rural denizens today, with notablesuccess. However, mere funds are not sufficientto accelerate progress in human developmentindicators. Efficient and effective delivery modelshave to be in place and these are sometimeslacking, especially in remote and rural areas ofthe country.

PIO/NRI have exhibited impressive interest inengaging with the social development story ofIndia. Many success stories are to be found allover the country where PIO/NRI havetransformed entire villages and their humandevelopment parameters. Their knowledge andexpertise, and invaluable innovative talents canassist in developing new models fordevelopment.

Philanthropy from overseas Indians is rising, andis visible in the large sums of money that areraised for charities in India through fund-raisingevents overseas. Many NGOs have receivedvital funds for their developmental activitiesthrough this route, and the uptrend has helpedseveral civil society organizations to reach largescale, infuse professional management into theiroperations, and impact the lives of millions ofdisadvantaged persons.

More PIO/NRI are willing to contribute both interms of funds as well as in terms of time, energyand knowledge resources. PBD 2008 will explorethe best practices prevailing in existing venturesand profile the outstanding engagements madeby the diaspora in philanthropy and knowledgetransfer. The role of the American Associationof Physicians of Indian Origin, the second largestmedical association in the US, in medical

education and intervention is of particular interestfor PIO/NRI looking for engagement options inIndia.

Economic engagementEconomic engagement of PIO/NRI with Indiaderives from two recent developments: rapidgrowth of the Indian economy at annual averageof 8.6% over the past four years, andenhancement of wealth of diaspora. OverseasIndians are now increasingly examiningopportunities for investing or doing business inIndia. The forces of globalization and India’smore extensive engagement with the globaleconomy are also fueling interest in trade andasset ownership. Opportunities also arise fromthe fast pace at which multinational companiesare entering the country to set up production orresearch centers. Suddenly, Indian professionalsworking in these companies are much soughtafter for their understanding of India’s marketand business environment.

India welcomes all foreign investment, includingfrom PIO/NRI. After the economic reformprocess was instituted in 1991, there has beenprogressive liberalization of the sectors and thepermissible proportions for FDI entry. At this time,almost all sectors are open for 100% FDI underthe automatic route, or without prior approvalfrom relevant authorities. Some sectors havelimits on the proportion of FDI in equityinvestment, and a few, such as multi-brand retailare not open to overseas funds. ForeignInstitutional Investors (FII) find India’s soaringstock exchanges to be particularly worthy ofinvestment, and net FII investment has onlyrecently been surpassed by FDI. FII investmentreflects the growing capability of the Indiancorporate, and is a mark of confidence in theoverall economy.

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However, for PIO/NRI, there is an informationgap that has to be surmounted before they canfollow this route. The lack of information oftenleads to investments being made not in Indiabut in other countries, despite the connectionsthat overseas Indians might have through friendsand relatives in India. It is to overcome thischasm that the Overseas Indian FacilitationCenter (OIFC) [www.oifc.in] has beenestablished as a collaborative arrangementbetween MOIA and CII.

Manned by CII, which through its internationaltrade activities has long experience of bringingtogether overseas businesses and Indiancompanies, the OIFC is envisaged as a one-stop shop for assisting PIO/NRI to place theirfunds in India. To begin with, the servicesprovided relate to Investment InformationServices, Real Estate Information Services andTaxation and FDI Information Services. Theseare detailed later in this paper.

Business-to-business relationships are anotherarea of economic partnership between Indiancompanies and overseas Indians. Indiancompanies are robust in not just the servicessector but also in manufacturing. Of particularinterest to overseas investors from the PIO/NRIcommunity could be the vibrant enterprises inthe Small and Medium Enterprises (SME)category. Producing two-fifths of India’s outputand contributing over half of its exports in directand indirect terms, these are the frontrunnersof the great Indian entrepreneurial class. At thesame time, they are harbingers of newtechnology and innovation, and can adapt tochanging global conditions. For overseas Indianswho may wish to make small investments, theseSME afford high and fast returns.

PBD 2008 will have a special ‘Marketplace’ toshowcase Indian companies and their products.The Marketplace will act as a source ofinformation as well as help network and connectIndian businesses with overseas businessmen.

ConclusionIt cannot be too often reiterated that the processof engagement of India with its vast diaspora isof mutual advantage. India seeks to engage withits people in other countries in the same intenseand committed manner that the diaspora wishesto engage in the land of its forebears. Thecountry can do as much for its children as theycan contribute to it. Gone are the days whenthe relationship between the two sides waslargely tangential, and engagement wasmarginalised.

Today as a new India seeks to become a globalplayer of significance, it needs to rely on itshuge human asset base in other countries,people who have already contributed vastly totheir countries of residence in economic, socialand political dimensions. The diaspora, repletewith diverse experiences and a repository ofunique talents, is an invaluable link ofunderstanding between India and a multitude ofnations, each with their own cultures andmanners.

Pravasi Bharatiya Divas 2008, the sixth in theseries, will strengthen and consolidate theprocess of engagement between the two sidesin this extraordinary partnership.

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1. Extend a wider range of benefits tooverseas citizens of India including allowingoverseas Indian doctors to practice in India.

2. Establish an overseas Indian FacilitationCentre to provide need based services toOverseas Indians.

3. NRIs should seek constructive engagementwith the country. The NRI community couldinstitute a prize for excellence on the linesof the Sir MacArthur Genius Award in theUSA.

4. Establish a foundation to facilitatephilanthropic contributions by OverseasIndians for the social development of India.

5. Expedite voting rights for NRIs.

6. Simplify and streamline the process forissue of OCI & PIO cards

7. The NRI community must become aknowledge partner in India’s development.To facilitate this the government shouldestablish an institutional mechanism toreceive such knowledge.

8. Develop a project in Kolkata tocommemorate the trials & tribulations of theindentured laborers

9. Amend the Foreign Contribution RegulationAct (FCRA) to facilitate overseas Indiansphilanthropy.

10. Prepare and publish an atlas of PIOcommunities

11. ‘Tracing the root’ streamline and expandthe programme

12. Overseas Indians must form a consortiumto develop and promote an IndianHumanities Foundation.

13. Establish a PIO University.

14. India must become a signatory to the Hagueconference and the convention on civilaspects of international child adoption.

15. Simplify the child adoption laws.

16. Introduce resettlement programmes for Gulfreturnees.

17. Establish state of the art skill upgradationfacilities and an appropriate programme foroverseas job-seekers

18. Design appropriate financial instrumentsand products to promote Overseas Indianinvestments over the longer term.

19. Different locations around the world shouldbe selected to hold mini PBD conferenceswhere the lesser privileged PIOs couldparticipate.

20. There is a need to engage talentedOverseas Indians youth in the task ofknowledge acquisition, knowledgeimparting, knowledge creation andknowledge sharing.

PRAVASI BHARATIYA DIVAS 2007

Summary of Recommendations

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PLENARY I

Social Development Challenges in India:Health & Education

India currently stands at a unique point in itsdevelopmental history. Its population of 1.1 billionis at the start of a steep upward curve duringwhich the age-dependency ratio, or theproportion of those in the age-group 15-60 yearsrelative to the non-working age group, will fallfor several decades before it starts rising again.In the developmental experience of nations, thisperiod of declining age-dependency ratio hasbeen co-terminal with periods of high growth asworkers’ savings rise. Young populations incountries such as Japan, Germany, and the EastAsian tiger economies have boosted growthrates to transform economies within the spaceof a single generation.

However, these countries have first laid a strongfoundation of human development beforeembarking on their demographic transitionperiods. Thus they have been able to developbefore their populations started aging. For India,the problem might well be that aging comesbefore development, in which case theopportunity for rapid development will be lostforever. The country is expected to add 71 millionnew entrants to its working age population,bringing it up to 762 million in the next five years.One third of the population is currently belowthe age of 15, needing access to proper nutritionand education in order to grow up as productivemembers of the workforce.

India has yet to achieve universal literacy andaccess to basic healthcare facilities for thegeneral population. Moreover, the advance oftechnology has shortened the time period

available before the age-dependency ratio startsrising again. By 2016, 9% of the population willbe over 60 years of age, translating into 118million requiring pension and healthcare. Thisproportion will further increase with the years.

Consider some of the stark statistics: 57 infantsper every 1,000 of those born alive die beforethe age of one. Almost half the children underthe age of three are malnourished, twice thepercentage in sub-Saharan Africa. In states suchas Madhya Pradesh, child malnutrition rates areeven higher. Estimates indicate that malnutritiondetracts as much as 2-3% from India’s GDPgrowth rate, while progress in reducing the rateis amazingly slow. It is these children, stuntedby lack of adequate vitamins and proteins intheir diet, who will form the workforce of thefuture.

India’s civil society has taken up the cudgels forsocial development, and the government israising social spending by many times. OverseasIndians have been engaging in their own differentways in social development of India. This sectionprofiles the sectors of health and education inIndia and examines some best practices inintervention by overseas Indians.

HealthIndia has made some progress sinceIndependence, with life expectancy going upfrom 32 years to double that in 2004. Accordingto the National Family Health Survey of 2005-06, the fertility rate has come down from 3.4 in

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hospital for effective curative care and mademeasurable and accountable to the communitythrough Indian Public Health Standards (IPHS);integration of vertical Health & Family WelfareProgrammes and Funds for optimal utilizationof funds and infrastructure; and strengtheningdelivery of primary healthcare throughpanchayats.

The 11th Plan aims to raise substantially the levelof public spending in health. It is estimated togo up to 2% of GDP by 2012, with the NRHMremaining the centerpiece of the Government’sinterventions. However, NGOs and civil societyas well as the private sector need to carve outa substantial role for themselves in healthcare,especially in delivery of effective and efficientsolutions.

Initiatives by overseas IndiansAmong the many efforts being undertaken byoverseas Indians, the initiative of the AmericanAssociation of Physicians of Indian Origin (AAPI)is noteworthy. Representing 45,000 physiciansand medicine students of Indian origin in theUS, AAPI has been active in contributing toIndia’s health sector. It runs 15 free clinics indifferent states of India addressing a populationof one million persons. In times of naturaldisasters such as the tsunami, AAPI has sentdoctors as well as supplies to help in the medicalfield and in rehabilitation of affected people. Ithas been conducting talks with the governmenton medical education, training of trainers forTB, HIV/AIDS and diabetes, and proposes tocommence activities in one village each ofAndhra Pradesh and Bihar as pilot projects.These initiatives will be scaled up in comingyears. A health summit is also being held byAAPI in order to discuss the possibleinterventions that overseas Indian physicians cantake. AAPI is involved in curriculum developmentfor medical schools as well and has beendiscussing new teaching methods with the Indian

1990-91 to 2.7. While 65% of women receivedantenatal care in 1990-91, 77% now had accessto it, with the rate being as high as 91% in theurban areas. Infant Mortality Rates in India at57 per 1000 are comparable to the average ofLeast Developed Countries, but far higher thanMiddle Income countries. However, most healthand nutrition indicators continue to showalarming rates – 20% of India’s children arefound to be under the nutrition category of‘wasted’. In rural areas, over four out of fivechildren under the age of three suffer fromanemia. Only 40% of births take place ininstitutions, the majority of babies being born athome without any kind of professionalassistance, especially in rural areas. Fullimmunisation coverage rates have not changedin the last seven years. HIV/AIDS afflicts 5.6million persons, and 445 of every 100,000persons suffer from tuberculosis.

Public spending on health as a percentage ofGDP has been on the downward trend, todaybeing below 1% of GDP. Free public primaryhealthcare is available in only 21% of villages,and absenteeism of healthcare workers isrampant. Medicines and other supplies aremissing from hospitals and clinics, and the ratioof doctors to the population is abyssmally low.Medical expenses, 80% of the aggregate beingin the private sector, can often wipe outhousehold savings and are the leading causefor a family slipping back under the poverty line.

The Government has been taking steps toredress the healthcare challenges. It hasinstituted the National Rural Healthcare Mission(NRHM) with clear defined objectives to bringhealthcare to the rural poor and raise publicspending on Health from 0.9% of GDP to 2-3%of GDP. It has as its key components provisionof a female health activist in each village; avillage health plan prepared through a local teamheaded by the Health & Sanitation Committeeof the Panchayat; strengthening of the rural

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Medical Association and the Medical Council ofIndia. The Association is keen to work with otherNGOs in the medical field to expand its activitiesin India.

The Public Health Foundation of India (PHFI)has also been in the forefront of policydevelopment and medical assistance. Realisingthe need for preventive and promotional healthrather than curative methods, a partnership of

AAPI Charitable Foundation is a non-profit division of the Association ofAmerican Physicians of Indian Origin. It represents over 40,000 practicingphysicians and over 10,000 medical students and residents.

AAPI-CF is committed to serve the poorest of the poor in remote areas ofIndia and USA. It has 15 free clinics in different states of India which servea base of over a million patients annually and which also provide outreachprograms for disease prevention and education. AAPI is always present whencalamities strike whether it is the Tsunami, Katrina, or Earthquakes of Gujaratand Maharashtra.

In addition, AAPI-CF grants scholarships to visiting specialists so that they may further their knowledge andskills in helping the deprived and indigent.

AAPI-CF is eager to share charitable work withother NGOs (Non-Government Organizations).The aim of AAPI-CF is to open one free clinicin each state of India and the US. AAPI-CF’sannual budget is $180,000. It is registered withthe IRS as a non-profit organization.

Clinics in India

Orissa - Sambalpur :

• mother and child clinic

• have near zero infant mortality for last 6years from 28 days to 1 year

• ambulance available

• door-to-door maternity care is done

• see about 2,100 patients monthly

• HIV screening is done, lab is available

• service more than 20 villages

• doctors including mid-wives are involved

the government, civil society, overseas Indiansand the private sector was initiated. Led by MrRajat Gupta, Senior Partner Worldwide,McKinsey and Co., PHFI has been engaged insetting standards for public health education andestablishing institutes for public health, a fieldwhich has few professionals in India. It alsoproposes to engage in public health research,in order to determine the social and culturalfactors that impact community health. Thus, the

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Foundation has helped shape public policy inhealth and is also assisting the Government intraining of the assistant health officers neededfor the NRHM. It has revealed the success ofpublic private partnerships.

Besides these major endeavors, smaller groupsof physicians of Indian origin from across theUK, Canada and USA have been involved on aregular basis in health initiatives. Teams areorganized to set up mobile clinics and examinepatients free of cost at villages. Simple surgeriesand procedures are carried out in camps.Doctors in rural areas are invited to learn thenewest techniques in medical science. Suchsmall-scale initiatives are funded by the doctorsthemselves or with assistance from fellowIndians overseas, and they bring vast relief tohundreds of destitute people, while at the sametime imparting a deep sense of fulfillment andphilanthropy to overseas Indian physicians.

Malnutrition remedies and health education arenot capital intensive and require only smallsupport, either financial or professional. Oftenthe difference between an infant dying orsurviving in its first few days of existence is amatter of correct information on breast-feedingor boiling water. Diarrhoeal diseases can beovercome through simple hygiene practices,while dysentery, that can claim lives, is curablethrough regular and easy access to free OralRehydration Solution packs. Malaria has beenfound to have been dramatically reduced by useof inexpensive mosquito nets. Interventions inthese areas in particular villages can help bringabout visible change in health conditions,especially of women and children.

Overseas Indians can contribute by way ofknowledge, skills and experience in the Indianhealth sector. There is need to engage at thevillage level or at the block level in order to

make visible impact on lives of poor people.

At the other end of the spectrum, overseasIndians can avail of the excellent medicalfacilities now available in India. The private sectorhas set up state-of-the-art hospitals and referralclinics in various parts of India. Medical tourismalready witnesses over 100,000 patients comingto India for low-cost high-quality electivesurgeries, combined with excellent post-surgicalcare and actual tourism. The Indian medicaltourism sector has the potential to grow into a$2 billion industry by 2012, leveraging lowoperation costs as compared to developedcountries.

For overseas Indians, coming to India formedical treatment makes eminent sense in viewof long waiting lists in developed countries,uncertain medical expertise in developingcountries, and the vast experience of Indiandoctors as well as common cultural ethos. PIOcan also consider investment in building hospitalsin India to build special medical infrastructurefor overseas Indian patients.

EducationIndia’s education system suffers from direshortages of schools, classrooms and teachers.Existing schools lack basic infrastructure suchas toilets for girls, chairs and tables, blackboards,or even chalk and slates. Often schools areconducted in the shade of a tree, studentsseated in neat lines on the raw ground.

Under the Government’s Sarva Shiksha Abhiyan,or Universal Elementary Education program, thenumber of primary schools increased from642000 to 767520 in 1999-2000 to 2004-05, oran increase of 125000. 98.5% of the ruralpopulation now has access to schools within akilometer, and 86% is served by a secondary

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school within 3 km. Enrolment at the primarylevel went up from 113.6 million to 131.7 million,and at the secondary level from 42 million to 52million. More heartening has been the fact thatgirls’s enrolment has increased faster than thatof boys, at an annual 5.2% in primary gradesand 6.5% in secondary school. Drop-out ratesfor all children have also fallen from 40% to28% in classes 1-5. However, only half thechildren enrolled complete secondary school.

Literacy rates are currently 70 per cent, but thedefinition of literacy needs to be revised from‘those able to write their own names in anylanguage’. Studies have revealed that the meanachievement in Maths in Class V was only 46%,while 17 Indian states have even lower ratesthan the average. Students have inadequateabilities to read and carry out simplemathematical operations.

At the post-school level, less than 5% of thepopulation has had any kind of skill training.Enrolment in universities stands at below 10%,while in developed countries, the rate is as highas 50%. The shortage of universities andcolleges for technical training has led to flight ofstudents from India to other countries – USAhas over 80,000 students from India enrolled inits colleges, the most from any country. It isestimated that some $4 billion is spent by Indianson education overseas annually. While 3 millionstudents graduate from Indian universities eachyear, only about 25% of engineering graduatesand 10-15% of general college graduates areconsidered suitable for employment in theoffshore IT industry, according to a recent studyby Nasscom.

The Government now proposes to expand itseducation initiatives manifold in the 11th Plan.Public spending on education, at 3.7% of GDPnow, is expected to go up five times the amount

that was spent in the 10th Plan. 6000 modelschools in all the Blocks, 30 new CentralUniversities, 370 new colleges in educationallybackward districts, expansion in the number ofIITs, IIMs, IIITs and IISERs and universalisationof secondary education are the targets for thenew Plan.

PBD 2007 had recommended that a fund beset up for contributions by the diaspora in theeducation field which would be managedsubstantially by PIO with support from thegovernment.

Initiatives by overseas IndiansThe key success story of the intervention of thediaspora in education has been the IndianSchool of Business in Hyderabad. ISB wasconceived in 1995 and the first batch of studentsjoined in 2001. By now it has become a centerof excellence for management studies andmaintains close links with international businesscolleges and academics. Led by prominentoverseas Indians as well as Indian corporateleaders, the ISB has again demonstrated theefficacy of partnership, this time between India’sprivate sector and the diaspora.

The Indian School of Business evolved fromthe need for a world class business school inAsia. Our founders- some of the best mindsfrom the corporate and academic worlds-visualised the leadership needs of emergingAsian economies. They recognised that therapidly changing business landscape wouldrequire young leaders with an understanding ofevolving economies, but also with a globalperspective. The ISB is committed to its role increating such leaders through its innovativeprogrammes, outstanding faculty and thoughtleadership.

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Our vision is to become an internationally top-ranked, research-driven, independentmanagement institution that grooms futureleaders for India and the world. Funded entirelyby private corporations, foundations andindividuals from around the world, who believein its vision, the ISB was conceived as a not forprofit organization

GOPIO.Connect

Help accelerate Global NRI/PIO contribution toIndia’s Development and fulfill its 2020 vision ofa Developed Country

The five-point goals of GOPIO.ConnectInitiative are:

– Capture and understand keyDEVELOPMENT NEED AREAS in Indiawhere NRI/PIO community can help

– Interactive sessions with NRI/PIO run Civilservice organizations on India DevelopmentIssues to widen awareness

– Research on key Development-relatedLAWS and highlight their enforcementissues for NRI/PIOs

– Execute Development Projects in India

– Encourage NRI/PIOs to research keyDevelopment-related trends in India atacademic institutions to facilitate new policyrecommendations in various GovernmentMinstries

Asha for Education is a secular organizationdedicated to change in India by focusing onbasic education in thebelief that education is acritical requisite for socio-economic change.

In keeping with this focus,our volunteers are

involved with and support projects that aresecular and have an education-relatedcomponent to them. The objectives of this groupare:

1. To provide education to underprivilegedchildren in India.

2. To encourage the formation of various localgroups across the world to reach out tolarger sections of the population.

3. To support and cooperate with persons andgroups already engaged in similar activities.

4. To raise the required human and otherresources to achieve the group objectives.

5. To provide opportunities to individuals livingoutside India who wish to participate in Ashaactivities in India.

6. To address, whenever possible, other issuesaffecting human life such as health care,environment, socio-economic aspects andwomen’s issues.

In the summer of 1991, a few students includingV.J.P.Srivatsavoy, D. Gupta, and S. Pandey gottogether to think of ways in which they couldplay a role in the development of India, thecountry of their origin. These young peopleshared the belief that education is a criticalrequisite and an effective catalyst for social andeconomic change in India. Basic educationbecame the agenda for the action group thatemerged from this gathering. The group wasnamed Asha to represent the hope that hadbrought these individuals together and the hopethat they aimed to bring into the lives of childrenin India. In that summer of 1991, Asha wasborn at the University of California in Berkeley.

Apart from helping to set up schools andcolleges, overseas Indians can also developprograms for student and academic exchangesin order to help update teachers on new methodsof learning and of the most recent advances in

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their fields. Websites can be established to helpconnect education institutes in India withcounterparts in other countries.

Indicative initiatives that can be taken to assistin the education field in India by diaspora include:

• Donating books and educational suppliesto schools, especially rural primary schools

• Funding buildings, toilets, and libraries inschools and colleges

• Providing computers and educationalequipment

• Providing training to teachers in ruralschools on better education techniques

• Providing scholarships to individual students

• Motivating students and spending time withthem for raising their awareness andanswering their queries about the outsideworld. Such interaction broadens thehorizons of students

• Encouraging communities to send childrenespecially girls to schools

• Engaging overseas Indian youth to dovolunteer work in rural schools for teachingEnglish, Science or art. This adds to theirresumes for college applications as well.

• Developing partnerships with colleges anduniversities for exchanges and lectures

• Endowing chairs

Many overseas Indians are also coming to Indiafor higher education. The Government hasproposed the establishment of a university forPIO with the help and support of the overseasIndian community.

A major policy option would be to involve thediaspora in the following ways:

– Create a network of diaspora academiciansin the social sciences and liberal arts andget them involved in up-gradation ofsyllabus and teaching styles

– Start a ‘teach a semester in India’ programfor diaspora academicians so that Indianstudents in small-town universities can beexposed to world-class teachers. Additionalresources raised from better managementof subsidies can be used to make this afinancially viable option. The program isbound to fail if it is purely based on a senseof charity on part of the diaspora. Theopportunity cost of the diaspora academicof spending a semester (or a summer) inIndia has to be taken into account, if notwholly, then substantially.

– Start a ‘adopt a library’ program wherebydiaspora academicians and diaspora basedalumni networks contribute towards makingavailable world-class reading material onlinethrough journal and other educationalmaterial subscriptions.

– Combine the three-year traditional class-room syllabi with online courses offered intie-ups with institutes imparting appliedwork-place skills. The diaspora can playhuge role in setting up (in terms of capital)and providing the human resources(teachers) for these online institutes. Indiandiaspora professionals can teach part-timeor provide consultancy to such onlineinstitutes. The government will have to allowthe tie-up with such private institutes andfind a way to regulate the combination of athree-year general degree with the onlineeducation specialization. In other words,diaspora specific FDI in the education sector(whether complete or with some joint-venture requirements with Indian partners)will have to be allowed as a first-step.

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CONCURRENT SESSION 1

Knowledge EconomyIn all fields, be it academia, business, scientific,social or political, the Indian diaspora hasdistinguished itself as a font of knowledge,creativity and innovation. Overseas Indians forma formidable knowledge cohort and an unlimitedreservoir for India to draw upon for talent,expertise, and advice.

Today, Indian technologists, scientists andengineers are to be found all over the world, atthe cutting-edge of knowledge industries. Moresignificantly, India itself is leveraging its humanresource talent to emerge as a global hub forproduct and process R&D, design, engineeringprocessing and other activities. In 2006, 15,000scientists in India were employed by top R&Dmultinationals. Companies like Microsoft and Dellhave made India their largest developmentcenter outside the US. Bangalore, Hyderabadand Mumbai account for a significant share ofthe $50 billion invested in R&D projects aroundthe world by multinationals between 2002 and2005.

Indian scientists are engaged in projects rangingfrom space technology to stem cell research.India is one of the seven countries partnering todevelop processes for fusion reactions underthe project of the International ThermonuclearExperimental Reactor. India is also part of theFutureGen Industry Alliance to develop cleanenergy from coal. Most of the top 20 internationalpharma companies have operations in India. Therace for research for new drugs is being pursued,with top Indian pharma majors involved indeveloping drugs for diabetes, malaria andothers

In the life sciences space, clinical research,biotechnology, and medical tourism are the otherfast-expanding industries, buoyed by the strengthof available talent. Biotechnology exports havecrossed $1.2 billion in 2006-07, and are expectedto reach total revenues of $5 billion by 2010,growing at over 30% annually. Science andtechnology is also emerging as a rapidly-growingsector. India is the only developing country tohave launched its own satellites and conductslaunches for other countries as well. It hasdeveloped its own remote sensing satellite andis entering into international collaborations forspace research. It has also initiated a missionfor the moon, termed Chandrayan.

Design and engineering is another field in whichIndian scientists have gained expertise. Autocomponent design, chipsets, as well ashousehold durables are now being designed inIndia in centers set up by internationalcompanies such as Intel, GE, Dell and others.Chip designing has 200 companies operating,and the revenues from this are expected to cross$ 2 billion by 2010.

Under these circumstances of convergingstrengths, the partnership of the Indian diasporawith the Indian knowledge economy is a naturalsynergy.

Overseas Indians are leading the march towardsIndia becoming a knowledge hub for the world.Many Indians are heading back to India to takeup jobs here, while others are leading theircompanies’ interaction with the country. This hasadded tremendously to India’s knowledge skillsand resources.

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National Knowledge Commission Chairman SamPitroda is examining new ways of expandingand strengthening India’s knowledge acumen.Five areas have been identified, including accessto knowledge, knowledge concepts, knowledgecreation, knowledge applications, and role ofknowledge in e-governance. Reports andrecommendations are being prepared on eachof these areas for the consideration of the PrimeMinister. The focus areas of the NKC includeliteracy, all levels of basic, post-school and highereducation, special areas such as managementand medical education, libraries, traditionalknowledge and e-governance.

According to Dr Pitroda, delivery of educationrequires new thinking and new models oflearning. Distance learning and delivery over theInternet must be increasingly considered asviable options in order to overcome thereluctance of teachers to go to remote areas ofthe country. The role of the teacher and ways ofteaching must be changed to fit newcircumstances and advances in technology. Thetask of making India a knowledge society ishuge, but can be achieved within a generation.

Given that the Indian economy is growing at 6-8% per year, while exports are growing at 30%CAGR, and many Indian firms are successfullycompeting against international firms andbrands, it can be concluded that this has beenmade possible by a combination of enablingenvironment, rising capital and labourproductivity, improved quality of goods andservices at lower cost, etc. In the growth ofquality and quantity of Indian economy,Innovation is a key driver, although this mayneither be apparent nor readily visible.

The National Knowledge Commission seeks toexplore and discover how Innovations are takingplace, driving growth and improving

competitiveness in various sectors of the Indianeconomy, with a view to replicate and furtherenhance India’s Innovation intensity, and toacknowledge the changing government mindsetand explore its role as an innovation enabler.The National Knowledge Commission envisagesa national innovation system, whereentrepreneurship at the local and national levelsis encouraged, and inter-disciplinary studies inS&T are undertaken in order to encourage newapproaches and methodologies. In order toexplore this sector, the NKC proposes toundertake a survey, seeking answers from keyplayers from each of these sectors, as well ashold a series of workshops with key players ineach of the sectors.

http://www.knowledgecommission.gov.in/focus/innovation.asp

Within this effort, the Indian diaspora with itsunique knowledge capacity can play a verypertinent and effective role. The Indian Schoolof Business, mentioned in the preceding section,has already demonstrated the efficacy ofdiasporia intervention in expanding knowledgefrontiers in India. It regularly brings eminentoverseas Indians to participate in lectures andseminars for its students, faculty andresearchers. Such interaction with the outsideworld helps expand the horizons of itsmanagement students.

At the Indian School of Business we have anenvironment that generates high-quality researchwhich is both contemporary and rigorous. Ourindustry and academic associations, and anopportunity to work in the fast growingeconomies attract faculty and research fellowsof international repute to the school.Conferences, seminars and workshops are aregular feature at the campus providing a forumfor presenting research work and discussing

15

important issues of global interest. These eventsbring together academics, corporates and policy-makers and are an opportunity to network andlearn.

h t tp : / /www. isb .edu/ in te rmed ia tepages/Conferences.shtml

Some ways in which the overseas Indiancommunity can help in making India a knowledgeeconomy could be:

• Engage with leading colleges anduniversities for sharing of knowledge,especially private institutions

• Initiate partnerships for research

• Build platform for translating research intomarket

• Bring research projects to Indian collegesand universities

• Endow colleges and universities with grants

• Assist meritorious students from deprivedbackgrounds to get admissions andscholarships in universities abroad

• Sponsor college fees and living expensesfor high-caliber students of impoverishedmeans

• Supply educational material, books andequipment to colleges and universities

At the same time, there is much that India cando for overseas Indians by way of knowledgeexpansion and knowledge management. The

proposal for a university for overseas Indianshas made considerable progress and is slatedto commence within the year. The Governmenthas moved rapidly on this suggestion fromoverseas Indians and has already sought tendersfrom PIO and other parties with experience toset up the university.

At the PBD held in New York in September 2007,there was also a suggestion that universitiesand libraries in other countries be given morematerial on India as it was found that booksand magazines from the country were not easilyavailable to the public. This is being actioned.

Many overseas Indians are returning to thecountry to take up jobs or settle down. Anecdotalevidence suggests that second-generation andthird-generation youth who have grown upoutside the country are also seeking tostrengthen their connection with India byaccepting employment or internships in thecountry. The government and the private sectorcould encourage this process by offering jobsas well as making it easier for them to get workvisas and other permits for working in India.Indian universities could also offer internshipsor visiting lecturer status for short periods tothose interested and qualified.

These initiatives would strengthen the exchangeof knowledge between India and overseasIndians.

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CONCURRENT SESSION 2

Culture

India is immensely fortunate to have acivilisational heritage that goes back millennia.This legacy imparts Indians with a strongmeasure of identity, self-confidence and security.Much of what a nation’s denizens feel aboutthemselves derives from the richness of itsculture, the strength of its national ethos, andthe vibrancy of its history.

This civilisational heritage remains ingrained inIndians despite settling overseas, and continuesto be reflected in languages, festivals, rituals,values, cuisines and other traditions followedover generations. The Indian diaspora, whereversituated, has been able to adhere to its originalcultures and traditions, maintaining lifestyles thatare similar to ones followed in India. It has beeninstrumental in keeping alive India’s customsover the years in different parts of the world. Infact, the diaspora has added uniqueness toexisting traditions by melding them with localpractices, thereby introducing rich new culturalfacets to the world that are solely their own.

In an increasingly technology driven world, it isboth easier as well as more difficult to keepalive connectivity with India’s culture overseas.On the one hand, music, dance, and moviesare abundantly available over the Internet andother media. On the other, rapidly changinglifestyles leave little time for overseas Indian,particularly youth, to indulge in cultural activities.

The good news is that Indian culture is findinga market overseas and becoming popular amongnon-Indian aficianados as well. Diwali is now as

much an international festival as Christmas. TheUS Congress has recognised Diwali, while thefestival is widely celebrated across countriessuch as Malaysia, South Africa, and UK by allcommunities. Indian fashion and designs areentering the ramps of high couture in France,USA and UK. Bollywood movies are screenedin cinemas across South East Asia, Japan, WestAsia and Africa. The most popular songs fromthese films are hummed all over the world, whilediscotheques feature lively Indipop. Indian art issought after in international auction houses, andhandicrafts and embroidery from all over thecountry are being revived in global shoppingchains.

The Indian Council for Cultural Relations (ICCR)regularly organises classical dance and musicconcerts overseas. Troupes of artists are takenall over the world to perform for internationalaudiences. Besides, the Indian embassies andother missions also organise fashion shows,handicraft exhibitions and film festivals. Therecent Incredible India@60 cultural fest in NewYork was a resounding success, drawing largecrowds of people at folk performances andmodern Indian songs by top artists at popularoutdoor venues.

The Confederation of Indian Industry has alsobeen deeply involved in a comprehensive brand-building exercise for the country that includesart, dance and music performances overseas.Private entrepreneurs also often hold film showsoverseas. These efforts at public diplomacy bythe government and the private sector are aimed

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at building a new image of India as a moderncountry rapidly progressing on the path todevelopment.

India offers a huge variety of culture to visitorsin every field, a diversity of experiences thatfew other countries can match. Bounded by thehighest mountain range in the world, theHimalayas, in the north, and the Indian Oceanin the south, the Indian subcontinent has evolvedover centuries into a multi-dimensional ethos.

For visitors, India presents an array of must-see, must-do experiences. History abounds inthe magnificent forts, palaces and templespresent in all parts of the country. Natural beautyand adventures are to be found in the foothillsof the Himalayas, the pristine beaches of coastalIndia, and the gushing mountain rivers. Classicaldance and music, with origins in ancient Hindutexts and more recent Mughal patronage, cantouch the soul, while art ranges from gracefulsculptures of old temples to modern paintingscaptivating aficionados all over the world. Eachpart of India has its own unique handicrafts andits own distinct and delicious cuisine, almost likesimultaneously visiting several differentcountries.

Among popular tourist destinations, Rajasthanin the desert north-west is visited for its majestichill-top ramparts and exquisitely carved windows,its colourful and vibrant ethnic designs, and itssunset camel safaris. Kerala in the south haslush lagoon backwaters and ayurvedic healingand de-stressing to offer. The mystical north-east of India, home to the mighty Brahmaputrariver, presents gentle misty hillsides with British-era tea plantations and vibrant tribal cultures ofits many indigenous people to the adventuroustourist. Uttar Pradesh is known for the famous

Taj Mahal, whose indescribable wonders canonly be gleaned through a personal visit. Themagnificent Mughal forts of Akbar andShahjahan are also located here as well asseveral lovely tombs of their officials and nobles.Bihar has Buddhist shrines and universities forthe religious tourist.

Overseas Indians can assist in the exercise ofbuilding Brand India in the following ways:

• Invite non-Indians to festivals andperformances

• Organise small seminars and workshopson Indian culture

• Assist local governments in holding culturalfestivals

• Use Indian arts and artefacts in their housesand be able to explain them to visitors

• Encourage friends to visit India

• Hold events to keep overseas Indian youthengaged with India

• Participate with children in Indian culturalorganisations

• Organise language, dance and musicclasses for Indian youth

The Ministry of Overseas Indian Affairs hascommenced a ‘Know India’ program to helpoverseas Indian youth travel to India and learnmore about the country. First started as a pilotproject, the success of this venture as well asthe demand from the Indian diaspora has led toexpansion of the program. This could become ahighly effective means for Indian youth to engagewith India during a gap year in their educationor as a way to expand their cultural horizons.

Overseas Indians are encouraged to participateactively in this program and help to expand it.

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CONCURRENT SESSION 3

Challenges in Women Empowerment and Leadership

India’s rich folklore and mythology are repletewith instances reflecting the respect and honorthat have always been accorded to its women.In ancient times, women were expected to sitside by side with their men during importantrituals and prayers, advise them on issuesranging from business to family matters, andparticipate actively in arts and music. Thetraditional position of gender equality has beenmaintained in Independent India’s Constitutionalrights and freedoms granted to women.

India was one of the first countries to give itswomen the right to vote, and guarantees theirright to equality. The Constitution of India, oneof the most progressive documents of its time,abjures any discrimination on the basis ofgender, yet states that this non-discriminationcannot stand in the way of special affirmativeaction programs for women. It also calls formeasures to promote harmony and to renouncepractices derogatory to the dignity of women.

So where do women stand sixty years afterIndependence?

Bolstered by cataclysmic social, economic, andtechnology changes in the world, Indian womentoday have carved out their own unique spacein their country’s history and left their mark in allwalks of life. The recent Forbes list of the world’s100 most powerful women had two Indian ladiesin the top ten, Sonia Gandhi, leader of India’sruling Congress-led combine, and Indra Nooyi,chairman and chief executive of Pepsico. Threewomen chief ministers are leading state

governments, bringing fresh ideas and moreresponsive governance into federaladministration.

Women have attained summit heights in thefields of music, dance, literature and art,recognized globally for their achievements. TwoBooker Prize winners in the recent past havebeen Indian women, Arundhati Roy and KiranDesai. Indian classical dancers, such asShovana Narayan and Sonal Mansingh, havecaptivated audiences across the globe with theirscintillating performances. Film stars AishwaryaRai, Preity Zinta and others give voice to thedreams of millions of women, not just in India,but all over the world.

In business, women entrepreneurs have movedfrom the earlier role of being forced to lead anorganization due to the death or incapacity ofthe primary male owner, to choosing to establishbusinesses to meet their career expectations.Many women have emerged from experimentsin their kitchen to enter into business, expandingthe enterprise stage by stage to reach brandicon status. Shahnaz Hussain and Tarla Dalalare two such examples who have built theirtraditional strengths into well-recognised entities.Kiran Mazumdar Shaw has translated hertraining in brewery into a multi-billion dollar globalbiotechnology corporate, and pioneered theconcept of the scientific entrepreneur in India.

More critical, at the grassroots level, over onemillion Indian women are holding the posts ofelected village heads, articulating the aspirations

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of 322 million female voters in rural development.Contrary to fears that they would be rubber-stamp leaders, they are transforming localgovernance by sensitizing the State to issues ofpoverty, inequality and gender justice as alsoissues that were largely unacknowledged,including water, alcohol abuse, education, healthand domestic violence. Through self-confidence,political awareness and affirmation of their ownidentity, these women are asserting control overresources and officials as well as discovering apersonal and collective power that waspreviously unimaginable.

Leading the success of the micro-creditmovement in India, self-help groups of womennow number in excess of 100,000, empowering2.5 million women and helping them convertbillions of rupees savings into income generatingprojects. Two-thirds of women in the ruralworkforce are engaged in self-employment,attesting to the entrepreneurial spirit at thegrassroots. Such on-the-ground empowermenthas enriched the lives of millions of ordinaryIndian women and given them critical decision-making capacity across a range of issuespertaining to their daily lives and consequently,shaping the nation’s polity.

Confident, assured and ready to face challenges,the Indian woman has evolved over the decadesinto an entity to be noted. Multi-tasking withconsiderable ease, she has managed to buildher own identity and her own path to happiness.The contemporary woman juggles the differentcomplexities and contradictions of her life andher position in society to free herself fromshackles and bonds of traditional roles. Sheengages in a pursuit of diverse interests andaspirations to maximize her potential as well asthat of the people around her.

Yet the challenges that face the Indian woman

today are daunting. Social beliefs have conspiredto keep India’s gender ratio on a downward path,reaching a low average of 933 females for every1000 males for the country. In certain parts ofIndia, the gender ratio is even more dismal,indicating the entrenched desire of Indianfamilies for sons and the consequentmistreatment of the girl child. It is estimatedthat ‘missing girls’ number 10 million in the last20 years due to illegal sex selection abortions,and the child gender ratio has fallen close to800 in some regions of the country.

Other development indicators remain poor forthe female part of the population. Just over 54%of women are able to read and write ascompared to almost 76% for males. Theworkforce participation rate for women is halfthat of men at the all-India level. Wages paid tofemale workers are far lower than what isreceived by their male counterparts for the samework. Over half of adult women suffer fromanemia and poor nutrition. 407 of every 100,000births result in maternal mortality. India ranks96 of 177 countries in the Gender DevelopmentIndex of the UNDP.

According to the findings of a recent survey bythe Confederation of Indian Industry, only 6% ofthe total number of employees in medium andlarge scale industries in India, constitute women,with 18% in medium and 4% in large companies.Further, it stated that 16% were at juniormanagerial level, 4% each at the middle andsenior levels, and almost nil in organizationalleadership positions. According to this survey,the main issues that affect women’s participationare gender bias in recruitment, gender inequalityand sexual harassment.

Women of India can hope to assume globalleadership when their overall position in humandevelopment indicators more closely

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approximates that of men. Women are criticaleconomic participants and contributors ineconomic growth. Empowering women will meaneducating them, giving them equal opportunitiesto employment and ownership rights. Thepopulation of women in India by 2016 is forecastto be 615 million, an economic force that cannotbe waived away.

Women in leadership roles are more exposedto criticism than men in the same position. Theyare also often held responsible for negativeoutcomes that were set in motion well beforethey assumed this role. But on the other hand,women bring more integrity, compassion andaccountability in the positions they work in. Theirperspective, ideas and contributions areinvaluable to the progress of a nation. Withoutwomen’s active participation and incorporationof their perspectives at all levels of decision-making, the goals of equality, development andpeace cannot be achieved.

Indian women have always traveled overseaswith their men. Even now, overseas Indian menoften return to their homeland to seek bridesand a good number of women marry outsidethe country each year. This has raised its ownchallenges as women seek to adjust to strangeand often hostile environments and differentlanguages and customs, while at the same timegetting to know a husband they may never havemet before. There have been instances wherehusbands have been found to have had interestsin local women, leaving their wives to fend forthemselves.

The support system needed by such new bridesarriving in distant lands is immense and mustbe strong and institutionalized. Unfortunately,

such supporting institutions exist only rarely andthat too in a limited manner. New brides areoften forced to lead solitary lives, taking yearsto learn the language and the ways of living inother countries. Overseas Indians and theGovernment through its embassies and missionsneed to collaborate in order to build an effectivemechanism for helping newcomers adjust.

Increasingly also, Indian women are travelingoverseas on their own as maids, nurses,domestic helpers, plantation workers, or factorylabour. Numbering in the hundreds of thousands,these women are recruited by agents from theirvillages and sent abroad with little or no trainingor familiarization process. At the end of thejourney, they are at the complete mercy of theiremployers, who often seize their passports, donot pay them as per agreed terms andconditions, and exploit them badly. There is noagency to assist women who may findthemselves in difficulties, or offer consultancyand legal advice.

The Government is currently in the process ofconsolidating the rules and regulations foroverseas work for both men and women. Thereis need to regulate the activities of agents whorecruit workers, in order that they provide correctinformation and deliver as per their promises.The offices of the Emigration departments needto be strengthened. Embassies, particularly inthe countries with large overseas Indian workerpopulation, should have the wherewithal toprovide effective support and counseling servicesto workers. Overseas Indians should also involvethemselves more closely in volunteering servicesfor workers, particularly women, to reduceexploitation.

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PLENARY II

Investment & Infrastructure

Investment and infrastructure are two of thedominant themes of the Indian economy goingforward. As the GDP expands at 9-10% annuallyand more and more people enter the consumingmiddle classes, a huge opportunity arises forinvestments in all sectors of the economy. Atthe same time, bridging India’s infrastructuredeficit entails not just funds but also appropriateand rapid delivery mechanisms. Connectivity andpower are the need of the hour, and with thesetwo in place, India’s development story will turndecisively towards fruition.

InvestmentIndia has the potential to become a globalmanufacturing hub, an international center forknowledge and human resources, a globalservices provider and a food factory for theworld. India’s natural advantages in climate, agri-zones, skilled and large workforce, and naturalresources can be leveraged in order to transformit into a significant goods and services sourceworldwide. The country is a proven topinvestment destination as is borne out in annualcorporate surveys by international consultants.

The Committee on Investment was set up bythe Government under the chairmanship ofbusiness leader Mr Ratan Tata to facilitateinvestments into India. The committee estimatesthat $500 billion worth of investmentopportunities exist in the country for the nextfive years in all sectors of the economy. Someof the areas that it has identified includechemicals, auto components, gems and jewelry,

food processing, etc in the manufacturing space.Under the services sector, the fast-growing areasare banking and insurance, retail, tourism andconstruction.

Investment is flowing into the country fromoverseas in the form of both direct investmentand institutional investment through the stockmarket. FDI jumped from $4.3 billion in 2003-04to $19.5 billion in 2006-07. FDI now forms 2.9%of GDP, up from 1.5% in 2000-01. India’s sharein global FDI flows went up from 2.3% in 2005to 4.5% in 2006. Under the FII route, $20 billionhas already entered the country this year, andis sending stock markets soaring.

Overseas Indians have been active in remittingmoney home, and the amounts have beenincreasingly steadily over the years. From $10.9billion workers’ remittances received in 1996,the amount has gone up to $23.5 billion in 2005,the highest received by any country in the world.Net private transfers in 2006-07 aggregated$27.2 billion, 13% higher than in the previousyear.

According to the RBI’s annual report, whichcarried out a survey of remittances, 44% ofremittances come from North America and 32%from Gulf and East Asia. More than half of theseremittances go towards supporting families inIndia, while 13% is invested in land, property orequity shares and 20% remains in bank deposits.Other estimates reveal that less than 5% of FDIcomes from PIO/NRI sources. A roughcalculation indicates that the potential for more

22

remunerative investments in productive venturescould be as high as 25% of the aggregate orabout $6 billion annually.

Synergies of diasporic expertise and globaltrends have resulted in high PIO/NRI activity incertain niche sectors. Prominent among theseis the Gems and Jewelry sector, where Indiansin Belgium, South Africa, and Gujarat havecombined to take over the global diamondcutting, polishing and trading business.Leveraging domestic skills in the cutting andpolishing area as well as PIO funds, India hasbeen able to gradually move up the value chainin the sector and take over from othercommunities. The same trend is also witnessedin the IT and ITeS sectors, where diasporainvestments into India are rapidly taking placethrough private equity placements and venturecapital. Many Silicon Valley technopreneurs areof Indian origin and are taking great interest inpromoting the sector in India.

A potential investment destination for PIO/NRIfunds could be in India’s Small and MediumEnterprises (SME). These enterprises,numbering about 12 million, form the backboneof the Indian economy, contributing two-fifths ofoutput and about half of exports, both directlyand indirectly. Many SME are at the forefront oftechnology, producing high-end products, andare flexible in adjusting rapidly to global demandenvironments. As per current policy, PIO/NRIare allowed to invest upto 100% equity with fullbenefits of repatriation in most industry sectors.There is no restriction on the extent of equitythat can be held by a Non-Resident Indian (NRI)as an individual/partner in a SSI unit. NRIs andOverseas Corporate Bodies (OCB)predominantly owned by NRIs are allowed toinvest upto 100% foreign equity in high priorityindustries with full repatriation benefits.

Overseas Indian Facilitation CenterThe information gap appears to be the primaryreason for low investment inflow from overseasIndians, as well as the desire to have highsecurity of investments. Other deterrents to FDIfrom overseas Indians could be that India’scompetitiveness as a low cost manufacturingbase that caters to small production facilities(with average investments of 2-3 million USD)preferred by small scale non MNC entrepreneursis significantly weaker than most economies inSouth East Asia including Bangladesh. Indianmanufacturing tends to be capital intensive inthe large scale sector, and labour intensive inthe small and unorganized sector. Secondly, sofar there has been no institutional framework tofacilitate and enable FDI from NRI/PIO as existsin several countries which have large overseaspopulations.

To overcome these hurdles to FDI from PIO/NRI, the Ministry of Overseas Indian Affairs andthe Confederation of Indian Industry have jointlyestablished the Overseas Indian FacilitationCenter (www.oifc.in). The OIFC is envisaged asa one-stop shop for assisting PIO/NRI to placetheir funds in India. To begin with, the servicesprovided relate to Investment InformationServices, Real Estate Information Services andTaxation and FDI Information Services.

OIFC has established partnerships withknowledge institutions Edelweiss for InvestmentInformation Services, Cushman and Wakefieldfor Real Estate Information Services andPeeyush Aggarwal and Co for Taxation and FDIInformation Services. These expert andexperienced institutions have specializedcapabilities in providing advice and consultancyto PIO/ NRI. Thus, OIFC can provideindividualized services for areas or sectors,specific projects, or prospective investmentdestinations through the partner institutions. It

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would also assist investors from the overseasIndian community in establishing businesspartnerships and fulfill ing administrativerequirements.

OIFC proposes to organize roadshows for Indianstates to highlight investment opportunities. Itwould also assist overseas investors inpartnering with states for projects. The Centercan also help in preparing feasibility studies forprojects and steer them through to completion.

OIFC is not confined to investment and businessqueries but will also extend facilities to overseasIndians interested in the social sector. It will helpidentify worthwhile projects and NGOs thatoverseas Indians can assist financially or throughtime and effort. It would also enable larger scalephilanthropic activities by diaspora such aseducational partnerships or hospitals.

InfrastructureThe Government has identified infrastructure asa key strategic sector for propelling andsustaining India’s economic growth. In the 11th

Plan, infrastructure has been accorded highpriority. The Prime Minister’s Committee onInfrastructure has been actively advising onfinancing models, regulatory structures andpublic private partnerships for stepping upinvestments in the sector. A recent documentput up for discussion outlines the investmentrequirements and sources of funds forinfrastructure projects during the 11th Plan from2007 to 2012.

The paper projects Gross Capital Formation inInfrastructure to go up from 5.75% of GDP in2007 to 9% in 2012. This is still short of theproportion of GDP spent by countries such asChina, which hovers around 11%. However, inview of the time-frame of 5 years, this is a

realistic target although not ideal. Assuming GDPgrowth rates of 9%, the amount of investmentrequired stands at $492 billion. The Committeehas broken this down as below:

1. Sector-wise Investments

Sector $ BillionElectricity 150

Roads 76

Telecom 65

Railways 62

Irrigation 53

Water supply and sanitation 49

Ports 18

Airports 8

Storage 6

Gas 5

Total 492

2. Funding Options

Sources of Funding $ billion

Centre 198

Central Budget 49

Internal Generation 45

Borrowing 104

State 149

Central Budget 100

Internal Generation 15

Borrowing 34

Private 145

Internal Accruals/ Equity 44

Borrowings 101

70% of required investment is expected to arisefrom central and state government sources and30% from the private sector. The private sector’sresponsibility is placed rather high consideringthat it currently contributes about 17% toinfrastructure investment. However, withincreasing emphasis on public private

24

partnerships and fiscal incentives being offered,the private sector is already meeting thisexpectation.

A financing gap of $40 billion still remains afterthe Centre and State as well as private sectorestimates of funding. Private equity funds fromoverseas have been active in establishing specialinfrastructure investment vehicles, including the$5 billion Blackstone-Citigroup venture withInfrastructure Development Finance Co andIndia Infrastructure Finance Co., and JP Morganand Chase’s $2 billion fund. But there is still along way to go for raising investment forinfrastructure.

The opportunities for investment in infrastructureare huge as the sector is growing at a rapidpace to match requirements. In the highwaysector, only 2% of India’s 3.3 million km of roadsfall under the highway category. Constructionfor upgrading and building national expresswaysunder the National Highway Development Projectare underway, the world’s largest single highwayproject.

In power, the 11th Plan projects thecommencement of 100,000 mw of additionalpower generation projects in the next five years.Opportunities exist in generation, transmissionand distribution of electricity with privatizationand unbundling of State Electricity Boards.Modernisation, maintenance and upgradation willalso require large private sector investments. Inthe ports sector, the National MaritimeDevelopment Program envisages 276 projectsfor the 12 major ports which are to be completedthrough public private partnership as well assubstantial investments in 187 minor ports.India’s expected rapid rise in exports and importswill provide the impetus to expand port capacity.

In the airport sector, an expected 100 millionpassengers are expected to travel by air by

2010, while freight will expand by 20% annually.Four metro airports are being built or upgradedand 35 other airports are also to be modernized,entailing a cost of Rs 40,000 crores. Telecom isalready a success story with 7-8 million newphone users being added every month. Urbaninfrastructure is also a sector with hugerequirements as the rural-urban population mixis expected to see major changes in the nextdecades.

In all these areas, the government hasrecognized the significance of public privatepartnerships and is developing model concessionagreements and stable regulatory authorities.100% FDI is allowed in most sectors withincentives such as tax holidays also in place.

In the infrastructure area, PIO/NRI need tocontribute more by way of knowledge,experience and expertise. Their ideas on bestpractices followed in other countries can helpadd to available talent in India. Consultancy andadvisory services in the areas of environmentalimpact assessment and other regulatoryrequirements would also be useful. It may berecalled that the drive to expand infrastructurein India is relatively new, and issues such aspublic private partnership modalities, regulation,and environmental impact are still evolving andbeing explored both by the government andprivate parties. Returning PIO such as Rajiv Lallof Infrastructure Development Company Ltd arealready utilizing their knowledge and experienceas well as networks to rebuild India’sinfrastructure. Others such as Dr PurnenduChatterjee of The Chatterjee Group have madelarge investments in select sectors in India.

As India’s investment and infrastructureenvironments restructure to meet emergingdemands, there will be huge opportunitiesavailable for PIO/NRI with the requisite fundsand expertise.

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PLENARY III

Trade and Business Opportunities

Exports of IT and IT enabled services hasreached $31.4 billion in 2006-07 and is well onway to meeting the target of $50-60 billion by2010. India’s share in services exports has goneup from 0.5% of world trade in 1995 to 2.2% in2005. India is now the largest exporter ofcomputer and information services. Otherservices such as trade related services, businessconsultancy services, engineering services, etc,have also increased to match the share ofsoftware services of 38% in aggregate serviceexports.

This platform shift in services exports reflectsthe growing prowess of Indian companies inglobal competitiveness and their success inmoving up the value chain. A key factor inservices exports has been the emphasis ofcorporate India on quality control, includingsecurity management. Companies have beenable to leverage the country’s high-skillmanpower to address global markets withefficient cost structures.

From zardozi embroidered household furnishingsfor the Middle East to high-tech auto componentsfor USA, India’s potential for trading in traditionalgoods as well as new technology products islarge. PIO/NRI with their unique understandingof both Indian business conditions and overseasmarket requirements have the unsurpassedcapacity to link the two in profitable businessventures.

Overseas Indians in various parts of the worldhave established themselves as traders and

India’s integration with the world gained withthe institution of economic reforms in 1991, andsince then, trade in goods and services hasexpanded greatly. In the more recent past,significant structural changes have beenwitnessed in India’s trading regime from 2003onwards when the global growth environmentturned benign. The shift in trading affords a newvista of expanding business opportunities forPIO/NRI.

Both exports and imports benefited from thestrengthening of world trade and grew in doubledigits. Exports crossed $126 billion in 2006-07,growing by over 25% each year from 2004, whileimports totaled $191 billion. Within this, India’sexports to Asia grew by over 20%, and by 2006-07, Asian countries accounted for almost 30%of goods exported by the country. In the area ofimports, a quarter of aggregate imports issourced from Asian countries.

The exports to GDP ratio has dramatically goneup to 13.9%, and imports now form 21.1% ofGDP. The globalization of the economy is evidentin the aggregate trade to GDP ratio now at 35%,much over the 14.6% seen in 1990-91.

India’s burgeoning current account deficit, arisingfrom stronger imports from the rest of the world,has been largely met by rising ‘net invisibles’,the category of foreign exchange inflows thatarises from sale of services overseas andremittances. In 2000-01, exports of services were$16.2 billion – by 2006-07, the figure went up to$81.3 billion, almost five-fold increase.

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businessmen to great success. They have beenable to achieve dominant positions as retailers,wholesalers and import-export merchants. InUSA, a large proportion of hoteliers are of Indianorigin. In Hong Kong, overseas Indians ownvaluable real estate and have been instrumentalin developing landmarks such as the ferryservices. In Tanzania, overseas Indians runshops and dominate the business sphere of thecountry.

With this wide range of experience, overseasIndians are well-positioned to leverage India’sgrowing economic prowess to emerge as theinterface between India and the rest of the world.

Marketplace at PBD 2008 is designed to enablePIO/NRI to connect with Indian businesses toestablish joint ventures and trading agreements.Marketplace will have experts from MOIA’spartner organizations in the OIFC to answerqueries on trade, investment, and business. Itwill provide specific information on areas ofinterest to visitors from overseas, specially inthe areas of taxation, real estate, wealthmanagement and FDI.

Issues that would need to be considered forpromoting business interaction of India with itsdiaspora include:

• Platforms for engaging with individual stateswherein state governments can set upinformation and business centers for PIO/NRI

• Business development road-shows andmarketing efforts directed at overseasIndian communities

• Special focus on handicrafts and handloomsof India which are currently much in fashionoverseas. States could organize group toursof their handicrafts spots for PIO.

• Greater coordination and leveraging ofIndian missions and embassies forpromoting product-specific and sector-specific trade by overseas Indianbusinessmen

• Targeting of information at overseas Indianbusinessmen by Indian missions andembassies

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PLENARY IV

Developmental Challenges of the States:Partnership Opportunities

The Indian economy has achieved a growth rateof 8.6% over the last four years, and seems setto reach for the imperative double-digit rate thatwill alleviate poverty and afford a better standardof living to all. This has been made possible bythe liberalization of the economy initiated in 1991and sustained by successive governments atthe centre over 15 years.

However, GDP growth is regionally erratic. Thegrowth rate varies from state to state and overperiods. The likelihood of inequitable incomeincreases proportionately. For example, the percapita income in Gujarat was 4.5 times greaterthan that of Bihar in 2003-04. Poverty ratio inPunjab was 6% while in Bihar, it was 47%. Richstates have grown over three times faster thanpoor states in the period 1970-2004. To promoteinclusive growth, it is critical that all parts of thecountry share equally in the fruits of highergrowth.

States in India’s federal system enjoy vastpowers relating to matters that have crucialimpact on growth, incomes and the lives ofpeople. Each state must fashion its policies fordevelopment according to its own particularneeds and local conditions. Some of the criticalareas in which states have full policy-makingautonomy under the Constitution of India includeagriculture, education at all levels, irrigation,health, infrastructure of various kinds, andothers. Many of these areas are the ones inwhich India has been making slow progress ascompared to other areas that are in the domainof Central government policy.

State level reforms assume urgency as all ofthe country needs to progress at a similar pacein order to ensure equity and balanced regionalgrowth. There is high potential for India’seconomy to be a player of significance in theglobal economic arena under its current growthconditions. India’s unique demographics makeit the only large economy with a declining age-dependency ratio till mid-century. If growingpopulation is not converted into productiveworkforce, hundreds of millions of Indians willbe condemned to live in extreme poverty. Afterfour years of rapid growth, India has thecapability to revolutionise its economy andincome levels within the coming generation.

A priority list for policy actions to be taken up bystate governments would include:

• States should be urged to set up StateDevelopment Councils consisting ofrepresentatives of major political parties,academics, civil society, and businesspersons. Widest possible ownership of theprocess should be achieved withoutcompromising time values.

• The Council should develop a consensusDevelopment Vision document for the statefor the next five and ten years withachievable targets in human and economicdevelopment. Human development targetscould be synchronized with MillenniumDevelopment Goals.

• Strategies for coordinated developmentneed to be put in place. For example,

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development of a tourist attraction wouldinclude requisite modern touristinfrastructure, transport facilities, touristpromotion activities, shopping andentertainment choices, websites andelectronic booking systems, tie-ups withprivate tour operators, working withembassies, and other strategies. For exportpromotion, administrative procedures,strengthening of existing clusters,marketing, linkages to ports and highways,and encouragement to FDI would need tobe considered.

Besides this overall strategy, sector-specificstrategies need to be put in place for key sectorssuch as agriculture, education, health,infrastructure and investment climate.

States with the most conducive investmentclimates have experienced faster inflow ofinvestments, both domestic and overseas. Firmsin states with poor investment climates have40% less productivity than states with goodinvestment climates. Investment climate is acomposite of different conditions, includinginfrastructure, access to finance, regulatoryburden, labor regulations and others.Maharashtra, Delhi, Gujarat, Andhra Pradesh,and Karnataka have been ranked in the top fivein terms of investment climate. These are alsothe states attracting the highest FDI and withthe fastest rates of growth.

India’s investment to GDP ratio has strengthenedover the years, attaining 33.8% in 2005-06. Thisis comparable to levels in East Asian economies.However, it has been estimated that investmentrequirements for India over the next decade are$ 1.5 trillion. The direction and flow ofinvestments is not regionally balanced. Statesneed to make tremendous efforts to redirectinvestments into their area.

Some of the sectors requiring large investmentare infrastructure, such as power, roads, ports,and airports; manufacturing, agriculture, highereducation, skill development and training,healthcare, etc. The public sector does not havethe resources to match these requirements. Atthe same time, rapid growth has allowedcompanies to access funds from differentsources – built-up resources, private equityfunds, debt, overseas borrowings, and others.Therefore, private sector investments can bechannelized to fill the gaps.

Regarding engagement of the Indian diasporawith states, it has been found that some of thestates such as Gujarat have been particularlyactive in attracting overseas Indians indevelopment projects. Gujarat has instituted aconference immediately following the PravasiBharatiya Divas to deepen interaction with thediaspora and facilitate their contributions. Otherstates such as Bihar and Karnataka are alsofollowing suit.

On the other hand, some diasporic experienceshave also been very negative. On occasions,overseas Indians have gathered funds or boughtequipment for schools or hospitals in states, onlyto find the state governments apathetic in utilizingthese. Such instances are avoidable. Statesshould welcome these contributions and makespecial efforts to recognize their worth and utility.

It is especially critical for diaspora to engagewith states as these are the governments mostdirectly influencing rural policies. As thedichotomies in human development of rural andurban India become sharper, it is necessary toreverse the trend through greater interaction withrural societies and their problems.

State Development Councils can enable greaterparticipation of diaspora in development activitiesby setting up a special cell to receive adviceand consultancy as well as other contributions.

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PLENARY V

Diaspora Philanthropy: Empowerment ofRural Communities

Out of 1027 million (or 102.7 crore) populationof India, as per Census 2001, 742 million live inrural areas and 285 million in urban areascomprising of 72.2% and 27.8% of thepopulation respectively. At the 1991 Census,there were 23 Urban Agglomerations/Cities withMillion Plus population. This number has nowrisen to 35. About 37% of the total urbanpopulation as per the Census 2001 lives in theseMillion Plus UAs/Cities.

Between 1980 and 2005, over 158 millionpersons are estimated to have been added tothe urban population. By 2020, the number ofurban denizens are expected to increase byanother 145 million to 463 million. However, thenumber of people in rural areas will also go upby 83 million by 2020, aggregating 870 million.

The pace of urbanization in India has been ratherslow, leading to pressure on agriculture as asource of livelihood in rural areas andconsequent low productivity. According toeconomists, the movement of workers from low-productivity agriculture to high-productivityindustry and services adds to output. It has beenestimated that in India, labor productivity inindustry is four times that in agriculture, whilelabor in services is six times more productive.Shifting of population from rural to urban areaswill increase the productivity of both. However,the challenges are to offer alternatives toagricultural income to rural populations and tobuild new urban agglomerations in a plannedmanner.

In the highly intensive agricultural practicesfollowed in India, with small farm sizes, multiplecropping, low mechanization, and high degreeof masked unemployment, the scope ofagriculture to enhance rural incomes is limited.Moreover, agricultural incomes cannot rise untilhigh subsidies in agriculture inputs and severeregulation of markets are addressed. Rural Indiacontributes about half aggregate GDP, and lessthan 20% of this is from agriculture. Servicesand industry comprise about 60% of ruralincomes.

Rural empowerment would arise from bettereducation and health access, and betteropportunities for income-generation andemployment. The overwhelming proportion ofrural income comes from the unorganized sector- small retail and manufacturing outlets such asvendors, repair services, and production centers.These are owned by family members and sufferfrom incomplete linkages with the nationaleconomy. Some of the sectors that will empowerrural India are organized retail and trade, healthservices, financial services, and education.

The rural market at 700 million consumers anda GDP equal to that of urban India is a dynamicmarket with huge potential. The structural shiftin source of income from agriculture to servicesand industry has created awareness andinformation. Further, the development oforganized retail has the capacity to revolutionizethe rural economy through supply chainsextending into the hinterland.

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While urban agglomerations require lessinvestment to develop markets, the rural areasdo not have similar economies of scale. To tapthe potential demand, the servicing of rural retailmarkets would have to be highly employment-intensive. If sufficient numbers of corporatesoperate in certain areas, critical mass to createa virtuous cycle of demand and rising incomeswould be ensured.

Organized retail sites must be created on a largescale in rural areas. At the same time, theintegration of rural and urban supply chains mustbe accelerated. There is potential to link ruralconsumers and producers to global value chainsthrough strengthening domestic rural-urbanconnectivities. This can be achieved throughallowing FDI in retail.

Overseas Indians may examine ways tostrengthen supply chains linking rural producerswith global markets. Philanthropic activities inrural retail could include contributing to set upformal establishments to enable vendors withcarts to move up the value chain; helping ruralartisans and craftsmen to access global marketsby redesigning products and enhancing quality;providing skill development and training inenterprise management; setting up channels oftransport; etc.

Absence of financial services and productsaimed at the rural population leaves large chunksof people out of the formal financial markets,even when sufficient surpluses exist. Only 27%of cultivator households get any institutionalcredit, another 22% borrow from moneylendersand 51% have no access to credit. Rural creditaccounts for only 15% of bank credit, with fivestates cornering 50% of outstanding credit. Thusthere is inadequate access to savings, creditand risk management tools.

The experience with local moneylendersindicates that consumers are willing and able tospend high amounts on availing credit. However,such credit is still spent on unproductive socialevents or on health, often leading to loss ofassets in case of non-repayment. Instances ofrepayment also are high, indicating largeuntapped savings potential, which has thepotential to add to the aggregate savings ratio.

Tiny and small amounts of money, distancesand lack of transport, and high costs of doingbusiness discourage formal financial institutionsfrom entering rural areas. However, the adventof technology has made it possible to innovatein rural finance.

Microfinance is proving to be successful inseveral states, linking millions of beneficiariesto banks. But even in this the average loan sizeof Rs 150-200 is inadequate for incomegeneration activities. Other options need to bealso explored, such as mobile banking, internetbanking, weekly banking, etc. to take the formalsector to the unreached areas. This will requiretrained persons which can be made availablethrough vocational programs in the villages.

Overseas Indians can contribute to the funds ofestablished microfinance institutions. They canalso provide mentorship and guidance to smallrural entrepreneurs for enterprise development.Consultancy services without charge could alsobe supplied to these institutions working at thegrassroots to empower villagers.

Rural populations have inadequate access tohealthcare, whether private or public. The gapis often filled by quacks operating locally. Again,this points to the willingness of villagers to payfor services. It is possible to establish a networkof trained healthcare personnel from local areas

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at lower costs than the amounts paid to quacks.In fact, there have been proposals to suitablytrain quacks already operating in the area inmodern healthcare practices and allow them toprovide basic healthcare.

Such local trained healthcare personnel canagain be supplemented by visits from doctors inneighboring towns for non-emergency medicalservices. Emergency medical services canpotentially be supplied through internetconnectivity and the local personnel. It is possiblefor diaspora medical professionals to use internetconnectivity to provide expert services to ruralareas even from their homes.

Diaspora engagement in rural sector has greatermultiplier effects than in the urban areas,although it is far more difficult for overseasIndians to relate to Indian villages. The goodnews is that Indian NGOs have undertakenintensive work in rural areas and it is profitable

for overseas Indians to contribute to theseeffective civil society organizations.

The previous PBD had recommended that aphilanthropic fund be set up to receivecontributions from overseas Indians. Such a fundcould be managed by a committee of overseasIndians and NGOs. It could identify the areas ofcontribution and channel funds to selectedprojects.

A platform could also be established to enablediaspora youth to engage with rural populationsthrough attachments to villages for 3-6 months.A program for this would be useful for buildingbetter understanding among youth about India,helping rural communities and adding toexperience of the young persons. There iscurrently immense enthusiasm among diasporayouth to acquire life skills through working indeveloping countries. They should beencouraged through properly organized andmanaged programs to work in Indian villages.