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A Perspective on the Indian Diaspora Confusion, Challenges, Opportunities…. Presented By: Ravi Sidhoo, Head of Global South Asian Business KBL European Private Bankers 15 May 2013. What will we not talk about?. India “Shining”. Other Stereotypes. What is the Indian Diaspora?.
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A Perspective on the Indian DiasporaConfusion, Challenges, Opportunities…. Presented By: Ravi Sidhoo, Head of Global South Asian Business KBL European Private Bankers 15 May 2013
What is the Indian Diaspora? A generic term to describe the people who migrated from territories currently within the borders of the Republic of India. It also refers to their descendants. The Diaspora is currently estimated to number over thirty million, composed of "NRIs" (Indian citizens not residing in India) and "PIOs" (Persons of Indian Origin who have acquired the citizenship of some other country). Half a million PIOs growth, and half a million NRIs being added every year.
Current Footprint of the Indian Diaspora Middle East (UAE ,Saudi Arabia, Qatar, Oman) Indian Population 4m+, of which UAE is the main market UAE Approx 35% of the retail banking population is Indian Approx 25% of the commercial banking population is Indian Asia (HK, Singapore, Malaysia, Indonesia, Thailand, Philippines) Indian Population 3.5m+ Historic presence and well entrenched in economy Growth through recent migration of professionals and entry of multinational corporations UK Indian Population 2.5m+ Strong vibrant affluent community Mainly entrepreneurs, professionals. Canada Indian Population 1.5m+ 2nd largest but fastest growing (95% till 2017) Australia, New Zealand Indian population 510k+ Large growing Indian population mainly a NRI opportunity USA Indian Population 4m+ Growth rate of 106% (1990-2000) Wealthy (highest of all immigrants) Entrepreneurial Geographic concentration (California and New York tri = 37% of the Indian-owned firms and 45% of Indian population). Indian businesses growing at double the pace (34% to 19% of overall US businesses) Mauritius, India MAR is a major booking centre Strong linkages with India Total remittances from Diaspora at $50B + and growing Total NRI deposit base of $47B (9% CAGR from 2000) Strong outbound flows from Indian corporate houses South Africa, Kenya, Nigeria, Ghana, Mauritius, Tanzania, Uganda) Indian Population 3.5m+ Concentrated in South Africa (46%) Significant links in economy and wealthy Large investments. by Indian corporate houses in recent years
How they got there? • Pre independence (17th century until end of the British Raj) • Indian merchants arrived in Russia in 1615 • In the 19th century workers migrated to British colonies, Mauritius, Guyana, Caribbean, Fiji, East Africa • Gujarati and Sindhi merchants settled in Iran, Oman, Bahrain, Dubai, South Africa, South East Asia and East Africa. • Started in 1890 in Canada with the British Army • Early 1900 in USA with British Army and traders during the Gold Rush • In the 19th century to the UK with the East India Co • Post Independence • After the 1970’s oil boom, numerous Indians immigrated to Gulf countries • 1990’s IT boom attracted a lot of skilled Indian workers • 1950-1960’s Punjabis came to UK followed by East African’s in 1970s
Political Relevance • USA • Over 25 elected officials on Indian origin • Bobby Jindal, Governor of Louisiana • Nikki Hailey, Governor of South Carolina • Swati Dandekar, Iowa State Senator • Canada • Over 25 elected / former officials on Indian origin • Bharat Agnihotri, Alberta Liberal MP • Ruby Dhalla, Liberal MP • Ujjal Dosanj, ex Liberal MP • UK • Over 25 elected / former officials on Indian origin • Keith Vaz, Labour MP • Lord Dholakia, Liberal Democrat MP • Paul Uppal, Conservative MP
Economic Relevance Nearly 5,000 NRIs with networth more than USD 30M, Wealth-X 2011 Top 100 Indian names have combined Net Worth of circa USD280 Billion - Forbes India's 100 Richest, Special Report 2009 The greatest concentrations of NRIs live in the US, UK, Canada and Australia Singapore, Hong Kong, UAE, Qatar and Bahrain are also emerging as new wealth hotspots At least 150,000 Indian millionaires live outside of India – Cap Gemini Asia Pacific Wealth Report 2007. UK top 100 Asians ( 85% Indian) worth more than USD 70B. Asian Rich List 2012
Economic Relevance • US • Doctors, IT Professional, Hotels / Motels, Property, Politics • Canada • IT Professionals, Farmers / Land owners, Transportation, Property, Politics • UK / EU • Retail, Pharmacies, Doctors, Professionals, Property, Politics • Middle East • Professionals, Traders • South East Asia • Professionals, Traders, Politics
US Census 2010 • There are 35000 Indian American doctors as per census 2010 • 72% are working out of which 66% are employed in managerial / professional specialities as compared to national average of 36% • As of 2002 there were more than 233,000 US firms owned by Indian Americans • 71% hold a bachelor’s degree or higher as compared to the national average of 28% • Per capita income of USD 88k in 2009 against national average of 50,221
Remittances by Diaspora 2012 remittances in USD Billions
Concluding Remarks • The Indian Diaspora is one of the most successful migrant populations in the world • While it has linkages with India, the Diaspora has an identity of its own • Contributes approx. 40% of India’s forex reserves • The Diaspora is very evenly spread, especially when compared to the Chinese Diaspora which is primarily based in South East Asia. ( 35M out of 50M total) • Success of the Indian Diaspora has played an important role improving the relations of India with rest of the world • Given its smaller size and proximity to Europe, its easier to target the Indian Diaspora than domestic India • Any government policy targeted towards India will be boosted by collaborating with the Indian Diaspora
Ideas for Collaboration • Incentives to invest in the local economy • Cultural Events held locally aimed at the Indian Diaspora • Trade Missions targeting the Indian Diaspora in UK, USA, Canada, Middle East and building awareness • Encourage local bodies which represent the Indian Diaspora and aim at building awareness around key issues and challenges. • Any policy incentive laid out for India would be boosted if also applicable to members of the Indian Diaspora • At the same time there could be policies targeted especially for the Indian Diaspora given their international characteristics • No better local brand ambassador to India than members of the Indian Diaspora