Indian PM announces steps to encourage Indian diaspora to invest

New Delhi January (Asiantribune.com):  Prime Minister Manmohan Singh on Saturday announced merging of the Overseas Citizen of India (OCI) and the Persons of Indian Origin (PIO) cards into a single facility to simplify visa-free entry and participation of Indian diaspora in business and other activities in India.

Dr. Singh also said that the government had decided to extend the facility of the Indian Community Welfare Fund to all the Indian Missions from the current 42.

Hailing the Indian diaspora, he pointed out that the Government had introduced the OCI and PIO cards to facilitate visa-free travel of NRIs and Indian Origin people to India as well as to provide them rights of residency and participation in business and educational activities.

 “We have reviewed the functioning of these schemes, and have decided to merge the OCI and PIO cards into a single facility. We hope to iron out some of the problems that have arisen in the implementation of these schemes,” he said addressing the 9th Pravasi Bharatiya Divas here.

In a bid to encourage PIOs (Indians who have shifted migrated permanently to other countries over centuries) to visit and invest in India, such people were given PIO cards. A PIO card holder does not require a visa to visit India and the card is valid for 15 years. A PIO card holder enjoys several economic and educational benefits. On the other hand, the OCI card is a kind of lifelong visa and any India origin person can apply for it if his host country allows dual citizenship.

Talking about the Indians who emigrate for work, Singh said their welfare is “a matter of special concern for us”.

To improve the conditions for migration, India has signed Social Security Agreements with 12 countries and finalised Labour Mobility Partnerships with two others, he said, adding a generic arrangement is also being negotiated with the European Union also. “As a further measure, we have now extended the facility of the Indian Community Welfare Fund to all Indian Missions,” he said. At present, such funds are available in 42 Missions. Dr. Singh said the government has decided to establish new Indian cultural centres in the US, Canada, Saudi Arabia, France and Australia.

 “I urge the Indian communities in these countries to support and patronise these centres so that they become effective instruments for projecting the diversity and splendour of Indian culture,” the Prime Minister said.

In his address, Dr. Singh invited the Indian diaspora to invest in the Northeast and contribute in accelerating the pace of development in the region. “I represent Assam in Parliament and I know what bountless potential the region has to contribute to nation building given the right opportunities.

 “Providing gainful employment opportunities for the youth is a real challenge. I encourage the diaspora to join hands with local and national efforts to accelerate the pace of development of this region,” the Prime Minister said.

The Ministry of Overseas Indian Affairs, which organises the Pravasi Bhartiya Divas, has partnered this time with eight northeastern states and Ministry of Development of North Eastern Region to project the region as an attractive destination for investment.

The new Direct Tax Code (DTC) bill that has proposed to make Non-Resident Indians (NRIs) liable to pay taxes on their income if they stay in India for more than 60 days per visit is not being implemented any time soon. This was revealed by the finance minister Pranab Mukherjee in his keynote address to NRIs at the plenary session on ‘Opportunity India’ at Pravasi Bharatuya Divas (PBD). The minister said that the DTC bill was being “scrutinized” and “no final decision” had been taken on it yet. He added that the bill was still in its formulation stage.

Under the existing Income Tax Act, NRIs are liable to pay taxes on their global income if they reside in India in a particular year for a period or periods amounting to more than 182 days. However the DTC bill aims to bring down this tax free period of 182 days to 60 days per visit.

New India tax rollout delayed until April 2012

NEW DELHI (Reuters) - India’s proposed new Goods and Service Tax (GST) will not be rolled out before April 2012, two years after its slated implementation date, due to continued parliamentary disruption, the Business Standard reported on Monday.

The planned nationwide indirect tax code to overhaul a complex system of state and federal levies will miss its October 2011 implementation date, as lawmakers will not be able to iron out legislative hurdles in time, the newspaper quoted unnamed finance ministry officials as saying.

Opposition protests demanding an inquiry into a $39 billion telecoms scam have paralysed parliament since November, causing a legislation logjam and setting back a number of reforms that the ruling Congress party had hoped to pass during this session.

The government had initially slated a roll-out date of last April, but have been forced to postpone the implementation twice due to resistance from opposition party-ruled states and fears over state governments losing financial autonomy.

Eliminating a multiplicity of indirect taxes would simplify the tax structure and broaden the tax base in Asia’s third-largest economy, boosting economic growth, reducing production costs and increasing exports, analysts say.