Overseas Indians which are often known as Non-Resident Indians (NRIs) they are the individuals who have Indian origin and lives outside the Republic of India. According to a report given by the Ministry of External Affairs study, there are 32 million PIOs and NRIs living outside the Republic of India, and Indians living abroad constitute the world’s biggest Diaspora. Every year, 2.5 million (25 lakh) Indians travel abroad, making them one of the the world’s largest yearly migrant population. Strictly speaking, the term non-resident relates solely to a citizen’s tax status who, according to section 6 of the Income-tax Act of 1961, has not resided in India for a defined period for the purposes of the Income Tax Act.
NRIs have the potential to significantly influence the country’s social, financial and economic situations. In recent years, NRIs have begun to integrate into a variety of activities in India which includes market growth operations like as outsourcing, technology transfer, tourism, and other contributions such as politics and large flows of information. With India’s present economic slump, NRI contributions can help to revitalise the economy. Many NRI firms, such as those located in the UAE (Lulu International, NMC Healthcare, and others), have launched multi-million-dollar investment projects in Republic of India. However, fresh government measures are required to entice more invest of NRI’s in the India. NRI investment in India’s market, as well as other government development efforts, would aid in the development of improved education, health care and the social protection, and other long-term growth in the nation. In the long term, this will also assist to reduce government spending.
In an era of economic recession, India is going through a tough patch, and its monetary situation is deteriorating. The pace of inflation is tremendous, and individuals are unable to manage their everyday lives. In this environment, the Indian government expects millions of non-resident Indians to help fix the issue by investing in India.
NRI earnings are projected to exceed $250 billion, accounting for one-third of India’s GDP. This obviously implies that they can make a significant contribution to the Indian economy and boost fiscal growth. The government provides wonderful possibilities for the NRI baby boomer generation as their net worth grows. This had really started in the year of 2000, when an Indian Diaspora of high-level group was being led by Dr. L.M. Singhvi and was formed to harness NRI resources and explore the potential of their investments in Republic of India.
Since then, India has sought the attention of more NRIs in order to assist India’s efforts in development. The government offers various possibilities for NRIs for investing in India. India’s reserve bank has instructed banks of India to attract deposits of NRIs, and they have a variety of long and short-term investment options. Furthermore, NRIs are being encouraged to set up businesses and educational institutions in India. As a result of all of this, there is a larger participation of NRIs investments in India which in turn helps to boost the economy in India. Even though their contribution is not obvious, NRIs serve their country through various activities in India. According to several sources, NRIs are a significant source of Direct Foreign Investment, market growth (outsourcing), charity, technological transfer, political donations, tourism and also larger flows of information in India.
NRIs have stepped up to assist numerous non-governmental organisations in country with a variety of educational, developmental and social projects which is helping the citizens of the country in many ways and thus improving the financial situation in country. A huge number of NRIs have been reported actively participating in various social projects in India. They have registered through several non-governmental organisations (NGOs) to promote health care, education and developmental activities like as water management, rural development, and self-help initiatives, among others.
Indo-Caribbean’s, Indo-Fijians, and other communities have made significant contributions to services doing social help in India. Many of them have stepped out to assist their Indian institutions and colleges where they studied. Some people have even established schools and universities in their ancestral village. The good news is that many NRIs are returning to India, and the majority of them are highly trained and experienced professionals. It will be helpful for the country’s development if their professional expertise and financial resources are combined. Professor Amartya Sen, a Nobel Prize winner in economics, is one such NRI who is helping to India’s growth and there are many such people like him who are helping and working for the benefit of this country despite living outside the Republic of India. NRIs can have a tremendous impact on India’s monetary, economic and social situations. The government of India should encourage them to invest and engage them in other development efforts in India. The growth of India’s development by the NRIs cannot be thus overlooked and are very important for the economy of India.