FM keen to tap NRI remittances

New financial instruments to be unveiled at Pravasi Bharatiya Divas

With a whopping $21 billion being sent to India as remittance from its citizens working in other countries, the finance ministry has decided to leverage this amount properly.

According to Malay Mishra, joint secretary, ministry of overseas Indians affairs, the first step in this direction is going to be announcements to be made by Finance Minister P Chidambaram on a host of new financial instruments targeting the Indian diaspora at the Pravasi Bharatiya Divas to be held in Hyderabad.

"Finance Minister P Chidambaram is going to address the Pravasi Bharatiya Divas on January 7, where he is expected to unveil some plans for the large amount of money we receive as remittance," he said. As of now, the remittance runs a "money order economy" in states like Kerala and Rajasthan with a lot of the money concentrated on real estate holdings.

"We get almost the highest amount as remittance and that sector is crying out to be looked at afresh," he adds.

Another sector that is going to receive some attention at this year's Pravasi Bharatiya Divas is the insurance sector. Mishra says that the ministry has invited the Unit Trust of India, HDFC and other insurance companies to the three-day event to offer comprehensive coverage to Indian labour working abroad.

"Most of our people who are working abroad are under-insured and this is one sector where the ministry can put the insurance companies in touch with potential clients and the event can provide a forum where the clients themselves can talk about the kind of insurance they want," said Mishra.

As a special event, a plenary session for state governments and potential NRI investors is going to held during this Pravasi Bharatiya Divas.

"Technocrat Sam Pitroda will be present at this meeting along with at least 12 chief ministers. They will court investment for their respective states," the joint secretary said.

It won't be all business of course. There will be an attempt to address serious issues like gender justice, brides abandoned by NRI grooms by holding special sessions. The divas will also focus on tracing of family trees of PIOs through research.

"We expect around 1500 people to show up for the divas," Mishra added.