Getting NRI's Investment
in India - Hurdles and Solutions.
India's civilisation is one of the
most ancient civilisations in the world. We
have a rich heritage. The
Indians who went abroad carry have a part of that heritage with them
and they are the cultural ambassadors of India in those countries.
They have great love and affection for their motherland.
They went especially to America
with not much
in their
pockets. But
within a few years, they made huge sums of money
and earned name and prosperity.
They would love to share it with their brothers and sisters in
India. In fact, they are doing something of the kind at present also
but there are some small hurdles which are impeding the inflow of
wealth to India. I humbly suggest the following measures to tackle
this problem and bring better understanding and harmony
between Indians
and Non- Resident Indians
( NRIs) . I would like to suggest a plan whereby
the Government of India will earn an
additional ten thousand crores of rupees in foreign exchange from this
project. As in
any business, we
need to invest some part of income just like any other
investment where the income is certain to be
many times more.
Suggestions:
1.
Visa facilities: Total visa charges for those coming to India
should be abolished and 90 days' tourist visa
should be granted on arrival free of charge to them.
2.
Custom Duty ceiling on NRIs should be increased to Rs. 2
lakh (tax free) and 5 per cent Custom Duty should be charged
over and above Rs. 2 lakh.
3.
Landing charges on all foreign airlines as well as Air
India should be abolished so that they can be induced to bring
in many more flights and tourists to India.
4.
Each NRI or foreign tourist visiting this land of rich
ancient culture should be welcomed by a garland and a Tilak
Ceremony at all the major airports of India.
5.
FERA provisions should be totally lifted on NRIS. It
is a very annoying hurdle.
6.
Bureaucracy: India has a very fine tradition of public servants.
They are doing a great job in serving this great nation. I
really appreciate their far-sightedness and straight-forwardness.
But the evil of mental slavery has not been totally
eradicated and that's why even after 50 years
of our independence, we are facing bureaucratic red-tapism and
hurdles. I appeal to all bureaucrats to free
themselves once for all from the lingering influence
of imperialism and rules & regulations and laws which
are impeding our economic development.
A National Commission, comprising leading industrialists, businessmen
and NRIs should be set up to suggest the changes in our
laws for the betterment of our economic situation. I also appeal to
the Prime Minister of India to consider this project immediately
and take a decision as early as possible so that we can start
earning much needed additional foreign exchange of Rs.
10,000/- crores every year.
7.
To help reduce corruption and bribery in Indian politics, I strongly
recommend the creation of a pool of Rs. 500 crores to be distributed
to all political parties on the basis of the percentage of votes
received by them in the General Election.
I may mention here that NRIs are interested in investing their money
in tourism industry (especially in building of hotels, etc.),
electronics, computer-software, mines and minerals, power, exploration
of oil, insurance, television and other important sectors. They are
ready to transfer appropriate business technology and professional
expertise to India so that this country can become a global economic
power of the world.
TOURISM:
Tourism
is one of the major industries in the world. Scores of countries base
their economy upon it. Even in India, it is the second largest foreign
exchange earner (Rs. 11,000 crores a year). We propose to set up a new
goal of attracting at least 10 million tourists to India within 5
years, so that we can earn at least 50,000 crores of rupees as foreign
exchange every year from them. To be able to achieve this gigantic
project, I make the following simple but powerful suggestions :
1.
Tourism, including hotels should be declared as tax free export
processing zone (actually this industry is much better than all other
industries, except software, as foreign exchange outflow is very
negligible as compared to the inflow of foreign exchange). Thus any
hotel anywhere in India will come under the purview of export
processing zone itself.
2.
All imports related to Tourism industry like hotels, luxury cars etc.
should be made duty free. It should be exempted from custom and excise
duties also. The same has already done for units set up in the Export
Processing Zones.
3.
At present the charges of Indian hotels are higher than those of many
other hotels in the world. This is a big hurdle for tourists visiting
India. Now with this scheme, thousands of new hotels will be built and
hotel charges will automatically come down and induce the tourists to
visit India in larger numbers.
4.
30,000 suitable plots of land all over India should be earmarked
for the development of hotels and resorts for tourism industry and a
nominal rate (Re. 1/- per square metre) should be charged from the
entrepreneurs. Emphasis should be given to eco-tourism (ecological
friendly tourism). These hotels could be built as a joint venture or
on B.O.T. basis. It would be better if a tourism development fund is
set up to bridge "critical infrastructural gaps." These
hotels should be thrown open to the private sector (Indian as well as
foreign entrepreneurs) and totally exempted from the environmental
laws. Each new hotel room constructed should be obliged to plant and
take care of at least 200 new neem trees to help in controlling
pollution and giving completely non-toxic and biodegraded pesticides
to Indian farmers.
5.
Starting of special taxi/bus/train and air sevas for tourists:
Special sevas should be started from the major metropolitan cities and
these should be connected with all the historic places. Through this,
we can provide good services to our guests. They can see entire India
in one go. In this regard GIF is of the view that necessary assistance
can be taken from Ministries of Tourism, Railways, Surface Transport
and Civil Aviation. Services of important functionaries of eminent
travel agencies/hotels/tourism departments of Central and State
Governments can also be taken in this regard to make these sevas
successful. In addition to the above efforts, all the important
pilgrim centers should be a connected with these sevas. Special trips
should be organised on festival season. There should be a proper
coordination among Central and State Governments, public sector
undertakings and the private sector. Programmes of seeing
monuments, various art forms, handicrafts, folk dances, traditional
fairs and cuisines should also be included in these sevas for the
preservation and enrichment of India's culture and heritage. It would
be better if we have the participation of panchayats, NGOs, local
bodies etc. to achieve a wider spread of tourist facilities. It would
not only reduce the regional imbalance but also improve the social and
economic standards of rural masses.
6.
Status of Industry to Tourism :
Tourism should be given the status of industry and all facilities and
concessions provided to other industries should be provided to this
industry also for its survival and development. For this, it is
suggested that a separate board should be constituted under the
Ministry of Tourism which should be headed by a senior level officer
of the Government of India. There should be four other members on the
Board selected or nominated by the different sectors of Tourism
industry. This Tourism Promotion Board would prepare policies and
programmes for the promotion of tourism and provide necessary
assistance and advice in the development of the industry. The Board
would also provide all types of facilities to our foreign guests i.e.
centralised money changes, bus-rail-car-air facilities and hotel
reservation, state tourism counters and tourist guides.
7.
Separate Legislation for Tourism :
A separate legislation for the development of tourism should also be
introduced brought out with the aim of ensuring social, cultural and
environmental sustainability of tourism development and protecting the
tourists in the country. Similarly, a regulatory institutional
mechanism would be envisaged in the legislation to deal with the
complaints of foreign guests firmly and provide them with all types of
security. Any type of insecurity would not only mar the interests of
the industry but also defame the image of our great country. We should
take precautionary measures for preventing these types of
mishappenings.
8.
Centres for Yoga and Naturopathy for Tourists :
It will be in the interest of the industry if a number of yoga and
naturopathy centers are set up for tourists. These centres should be
built up in the Himalayan surroundings which are known for peace,
devotion and sacrifice. We have a glorious past and we are all proud
of our cultural heritage embedded in the teachings of ancient seers,
rishis and wise persons. The two great apostles of peace and
non-violence, viz., Lord Mahavira and Lord Buddha were born here. Our
sacred lore is replete with innumerable incidents and anecdotes
relating to self-illumined and enlightened sages and other holy
persons. It is on account of our common spiritual and moral values
marking our unity in diversity that our cultural heritage is intact
despite foreign invasions from time to time. In short, India was not
only the spiritual Guru for other nations, she was also a model nation
as regards economic prosperity and development. Our ancient legacy in
all areas is singularly unique and peerless.
I may
mention here that nris are interested in investing their money in
tourism industry (especially in building of hotels, etc.),
electronics, computer-software, mines and minerals, power, exploration
of oil, insurance, television and other important sectors. They are
ready to transfer appropriate business technology and professional
expertise to India so that this country can become a global economic
power of the world.