The Union government has set up a non-profit trust which would serve as a single-window platform to implement projects funded by overseas Indians in the social sector.
The India Development Foundation of Overseas Indians (IDFOI) will be a one-stop shop to channelise investment by the diaspora in diverse fields including micro credit for rural entrepreneurs.
IDFOI has been set up by the Ministry of Overseas Indian Affairs after it was felt that capital flow from the diaspora for social development projects has been far short of the actual potential.
“It has been realised that diaspora philanthropy has been sporadic in absence of a proper platform to attract funds. That is why we decided to set up this trust,” an official of the ministry said.
According to a government figure, overseas Indians produce an economic output of about $400 billion worldwide.
“The broad objectives of the trust are to lead overseas Indian philanthropy into India and establish a mechanism through which various social development projects could be undertaken,” the official said.
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The official said IDFOI would also provide a list of credible institutions, projects and programmes to the diaspora community to offer diverse choices to invest their money.
The trust will be managed by a board of trustees consisting of 15 members. Minister of State for Overseas Indian Affairs Vayalar Ravi will be chairman of the board, while secretary in the ministry, K Mohandas, will look after day-to-day functioning.
The official said the trust would also partner with states and encourage credible philanthropic organisations to project social development opportunities to overseas Indians in sectors that best match national priorities.
To engage the diaspora in developmental programmes, the government had earlier announced setting up of ‘Prime Minister's Global Advisory Council’.
Nobel Laureate Amartya Sen, steel magnate L N Mittal and Pepsi chief Indra Nooyi were among the 20 global business leaders and economists of Indian origin who were made members of the council.
The council was formed to serve as a platform to draw upon the experience, knowledge and wisdom of the overseas Indians.