India needs more steps to attract NRI millionaires

NRI internet.com
Editor-in-Chief

Only few States, such as Andhra Pradesh and Maharashtra, have mounted promising campaigns to woo investors of NRIs. Andhra Pradesh's emissaries, for example, regularly attend meetings of the prestigious World Economic Forum in Davos, Switzerland and elsewhere, and target NRI millionaires

There are over 20 million NRI around the world, the third biggest NRI community globally after the Chinese and Irish. There are 150,000 Indian millionaires outside India, and they have a total of US$360 billion in surplus funds available for investment.

NRIs generate more than US$100 billion in income each year; and they remit around US$30 billion every year to their native country. In the Arabian Gulf area, for instance, there are some 4.5 million people of Indian origin; they send US$ 4 billion in remittances to their relatives in India each year.

India has received US$1.12 billion since the start of this year, accounting for 28 per cent of the US$3.97 billion flowing into Asia. This represents a record for India, because it has traditionally lagged behind South Korea, Singapore and Thailand. These are impressive figures, but does the Indian economy stand to benefit from the success of its emigrants? Will the Indian equity market and sectors such as engineering, technology and manufacturing get more investment from NRIs? (India's total FDI is around US$3 billion annually, a fraction of which is from NRIs.)

Arun Jaitley, Minister for Law and Company Affairs say they want the FDI to triple to at least US$10 billion annually. This week, they received some gratifying news: Emerging Portfolio Fund Research (EPFR), a widely respected organization that tracks investment flows and trends, said that foreign funds are increasing their investment in India and some other emerging markets in Asia

A prominent Singapore restaurateur, Mr. Surya Jhunjhunwala - whose assets reportedly are in excess of US$100 million - that he viewed India as a 'prime country we are looking at investing in'. Mr. Jhunjhunwala and his younger brother have built a restaurant and real-estate business that includes Singapore, Australia and Hong Kong.

In USA, Govt. encourage to small scale industry entrepreneurs by giving low interest rate and tax break, because 60% jobs are created by small scale industry. Indian Government must take step to Encourage NRIs who can easily invest 1-5 millions dollars in small scale projects such as housing, IT, and food products for export to western Countries.

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Indian political leaders must understand that without communication and transportation infrastructure, India can't become super power:

India has 3.3 million kilometers of road network, which is one of the largest in the world. Roads occupy an eminent position in transportation as they, carry nearly 65% of freight and 87% of passenger traffic. Traffic on roads is growing at a rate of 7-10% per annum while the vehicle population growth, for the past few years, is of the order of 12% per annum.
The Indian road network is divided into three main categories: national highways (interstate) covering over 58,000 kilometers, state highways covering approximately 200,000 kilometers, and rural and urban roads covering nearly 3 million kilometers

Much of the expansion of the road network has been through building rural roads to provide connectivity to rural areas, although 50% of villages are still to be connected with all - weather roads.

The main road have not kept pace with traffic in terms of quality also. Out of the total 162,920 Km. Length of National and State Highways only 2 percent of their length is four-lane, 34% two-lane, and 64% single lane. As far as NHs are concerned, only 5% of their length, is four-lane, 80% two-lane and the balance 15% continues to be single lane. The deficiencies in the road network is causing huge economic losses due to slow transportation and also contributing to high rate to road accidents.

There is a need to upgrade the road system in the country by widening and strengthening existing highways, reconstruction/widening bridges and provisions of user friendly improvements

The functions relating to development maintenance and management of National Highways are carried out by the `Central Govt. under the provisions of National Highways Act, 1956. The Act has been amended in June, 1995 to permit private sector participation. NHAI was established under the National Highways Authority of India Act, 1988 but was operationalised on in February 1995. MOST has so far entrusted the following works to NHAI for implementation under BOT Scheme:

- Durg Bypass on NH-6 in Madhya Pradesh
- 6 ROBs in Rajasthan, namely :
- Kishangarh Bypass - NH-8
- Ajmer Bypass-2 ROBs NH-8
- Km 26 of NH12
- Km. 69 of NH-12 (Newari Bypass)
- Km. 11.5 of NH-14 (Beawar)
- Moradabad Bypass on NH-24 in Uttar Pradesh
- Akola and Amravati Bypassess on NH 6 in Maharashtra
- 4-laning from KM 343.0 to 381.0 on NH-8 in Gujarat
- Incomplete strech on the delhi-Ambala section of NH-1

While the traffic on National Highways has been growing at a rapid pace, it has not been possible for the Government to provide matching funds due to competing demand from other priority sectors. This has led to a large number of deficiencies in the network. Many sections of the NHs are in need of capacity augmentation by way of widening grade separation construction of bypasses bridges and expressways etc. Many bridges are in need of replacement. The traffic movement on NHs is also hindered due to a large number of Rail-Road crossings where road traffic has to per force stop due to the frequent closures. The overall scenario on the highways has led to economic losses by way of longer turn around time for the vehicle fleeting rising vehicle operating costs and dissipation of human energy in the driving. This calls for urgent remedial measures.