26 India and Indian Diaspora

Professor R.S. Yadav

Structure of the Unit

1. Introduction

2. Objectives

3. Types of Migration

3.1. Emigration to British, French and Dutch colonies

3.2. Emigration to Developed World

3.3. Emigration to West Asia

4. Status of Migrants

5  Role of Diaspora in Foreign Policy

6 Conclusion

7 Important Questions

8 Suggested Readings

1.    Introduction

Migration of Indians to different parts of the world is not a new phenomenon. Since historical times, they had been visiting far-off lands with divergent motives. In ancient times, they were visiting different lands either to preach religious sermons or to spread the message of Indian philosophy. In the medieval era, most of the Indian people went abroad along the silk route for the purpose of trade in Europe. Besides, they have also travelled towards Southeast Asia for spice trade and large number of them got settled in that land. But both kinds of visitors neither make conquests of foreign land nor extended imperialistic design in those countries. Besides, most of these people returned back to India after fulfilling their requisite tasks. However, cultural impression and rich philosophical heritage continue to be found on the land of their visit.

Indians, however, never went abroad in large numbers due to three fold reason – (a) First, India used to be a prosperous and wealthy nation prior to 18th century; (b) second, until the beginning of 20th century, India‟s population was not so large to make a problem for living for its citizens;

(c)   third, Indian culture and religious teaching prevented them to conquer foreign lands by the use of force. Besides, several myths were associated to prevent them from visiting foreign lands and sea voyage. However, with the coming of Europeans, the interaction of Indian people got extended to different parts of the world. Consequently, Indian started migrating to foreign lands frequently and in large numbers. In modern times, when Indian migrants started settling in those lands they are called “overseas Indians” or “Indian Diaspora” and the question of their impact on foreign policy got prominence. Migration of Indians to various countries was due to “push” and “pull” compulsions of its people. For most of them the “push” was impacted by the relative economic poverty in their country of origin and the “pull” of brighter economic prospects in those countries.

2.   Objectives

This module will apprise the readers about numerous issues related to Indian Diaspora. This module examines various types of migration from India like Emigration to British, French and Dutch colonies; Emigration to Developed World; and Emigration to West Asia. The next part of the module is focused on the status of migrants i.e., Persons of Indian Origin (PIOs), Non Resident Indians (NRIs) and Stateless Persons of Indian Origin (SPIOs). Finally, the role of Indian Diaspora in foreign policy of India has been analyzed in the last part of the module. Important questions and suggested readings have also been included in this module.

3.   Types of Migration

Broadly speaking, Indian migration to different parts of the world could be classified into three main patterns, which are given below:

3.1. Emigration to British, French and Dutch colonies

With the end of slavery in 1834 in the British Empire, numerous Indians were induced, coerced or encouraged, often with false promises of a bright future, to immigrate to various parts of empire so that it could have enough labour to develop virgin lands. A new system of contract labour, the indenture system, was introduced to engage workers for 5 to10 years contract on a meager salary. Under this system, number of persons migrated to British, French and Dutch colonies in Mauritius, Uganda, Zanzibar, Tanganyika, Kenya, South Africa, Fiji, West Indies etc. Most of these persons were illiterate and belonged to lower strata of the society. They were not allowed to return back on one pretext or the other and were subject to numerous inhuman tortures. They were mostly treated as slaves. Gradually gaining comparative affluence through hard work caused animosity of earlier settlers and native population to them. They also suffered the problem of racial or ethnic discriminations. However, to a great extent they were relieved of those sufferings with the end of indenture system in 1917 through the efforts of Indian political leadership. Though by now most of these people have become settlers in those lands, yet they continue to share religious, philosophical and cultural fervor of India. Besides, whenever they face backlash from contemporary developments in the country of their residence they look towards India for moral or emotional support in the international forums.

3.2. Emigration to Developed World

Emigration of Indians after the Second World War has been towards the developed countries of Europe, Canada or the USA. These included mostly highly qualified professionals- doctors, engineers, chartered accountants, businessmen etc. They did not face such difficulties as faced by the earlier migrants during colonial times. However, some less qualified persons or illegal migrants do have to face some hardships. Besides, in the contemporary Europe, sometimes due to emerging racial fundamentalism some have to face the problem of racial backlash. Among these migrants, some have already acquired the citizenship of those countries by way of naturalization, whereas others continue to retain their Indian identities. Because of their positive contributions, some Indians have not only acquired political role for themselves, but also are heading some political offices. Besides, by dint of their hard work, specialized knowledge and capabilities some are heading number of top positions in both public and private sector institutions of the host countries. Moreover, some are being honoured for their excellence in those states. Though number of such persons has acquired the citizenships of their respective states, yet they continue to hold linkages with Indians or Indian culture by one way or the other.

3.3. Emigration to West Asia

With the coming of oil as an important factor in the economy of West Asian states, large number of skilled and unskilled Indians has migrated to Gulf countries. A large number of Indian professionals- doctors, nurses, architects, engineers, accounts etc – had headed for West Asia to reap a part of the bountiful harvest of local prosperity. India‟s consistent solidarity with the Arabs in the Arab-Israeli conflict facilitated smooth emigration of those people in these countries. Most of them still hold the status of non-resident Indians, as West Asian countries are very strict about the naturalization process. A very few persons could acquire citizenship of those countries. Even the businessmen could do their activities either through local sponsor or through some multinational firms. However, during the current liberalization process in the Gulf economies, a new role for Indians is inevitable. A distinct class of new generation of Indian entrepreneurs is emerging. For instance, the names of Manu Chabaria, Ram Buxami, Bavaraghuthu Raghuram Shetty, Yousul Ali etc. are well known entrepreneurs in the Gulf countries.

Indian nationals in the Gulf have been major source of foreign exchange for the country. According to an estimate of 1994-95, NRIs from West Asia contributed Rs. 7800 crores in the India‟s foreign exchange reserves. During 1991 crisis as well large amount has been repatriated by Indians living in those states. Even in the post-Pokhran-II situation 17000 crores worth “India Resurgent Bond” issued by SBI was purchased by them. Even under the “India‟s Millennium Deposit Scheme” US $ 3 billon came from the Gulf countries. Thus, large sum of foreign exchange to run very important economic programmes in India comes from the Indians living in the Gulf countries.

However, the phenomenon of migration to Gulf and experiences of the NRIs in Gulf has been full of problems. Despite numerous precautions at governmental level, abuses and malpractices in clearing the emigration of persons going to these countries is not smooth. This is particularly referred to in case of unskilled labourers. Many private agencies and bureaucratic hurdles create lots of problems for them. Similarly, the NRIs also had to face number of bank frauds, inconveniences, investment problems etc to get the real value of their money repatriated to India. That is why; Government on the one hand, is making the process of migration more transparent and easy; whereas on the other hand, making simplified policies and rules to engage the NRIs from the West Asia to engage them in the developmental process of this country.

4. Status of Migrants

Before assessing the role of overseas Indians in India‟s foreign policy, it becomes inevitable to discuss about the types and status of these in different countries. Broadly speaking, 20 million Indians are living in different parts of the world. On the basis of their status, they could be categorized into three main groups:

4.1. Persons of Indian Origin (PIOs)

The first category of persons is associated with the imperialistic policy pursued by colonial masters. They are descendents of migrants during the period of indenture system. Approximately they are found in 110 countries in all the continents of the world. They have to face numerous sufferings during that period and even in the contemporary times. The only difference has been the type and system of their working. Largest concentration of them are found in countries like Fiji, Malaysia, Myanmar, Sri Lanka, Mauritius, East and Central African states, West Indies etc. They suffered from racial backlash from both the colonial masters and indigenous population of present times. Though most of them are now part of the population of those states, yet some have to face second migration to the third country. Now they remain part of India alone in terms of cultural and religious bondages.

4.2. Non-Resident Indians (NRIs)

Non-resident Indians (NRIs) is a very recent phenomenon of migration first towards Europe and then towards West Asia. According to FERA law NRI has been defined as “an Indian citizen who stays abroad for employment, or carrying on business, or vacation outside India, or stays abroad under circumstances indicating an intention of an indefinite duration of stay abroad”. Usually such person holds an Indian passport or he or either of his parents or grandparents was an Indian and a permanent resident of undivided India.

After Second World War, usually skilled and unskilled persons went to Britain or other European countries to seek jobs or find out the opportunities for their earnings. In the post-1970s, there was large scale migration to get benefited from the oil boom in West Asia. However, in the 1990s, greater migration has been of highly sophisticated professionals to the first world. Large number of computer engineers, doctors and other professionals got new opportunities in the USA.

These NRIs are a great source of foreign remittances from the host country to their motherland. For instance, the NRIs from Gulf countries alone remitted US$4billon a year. Their contribution gained prominence in 1991 during the Gulf crisis when Indian balance of payment was in red. Besides, in the post-Pokhran II era when State Bank of India floated Resurgent India Bonds to the extent of Rs. 17,000 crores, the Gulf NRIs contributed 40 percent of it. Similarly, to the State Bank of India‟s Millennium Deposit scheme NRIs contributed about US $ 6 billion, out of which share of Gulf NRIs was more than half. The similar trends continued in regards to NRI deposits, which has invariably grown throughout the 1990s. NRI deposits in 1991 were US $ 13,721 million which grew steadily to US $ 21,301 million in 1999 and US $ 22,880 million as on February 2000. Thus, Indian economy has been greatly benefited by these developments; hence it managed the balance of payment crisis very smoothly.

To a great extent even the status of NRIs has undergone transformations in the Middle East and the USA. Portfolio of Indians in the Gulf is changing in the new era of globalization. A new class of Indian entrepreneurs has emerged in this region. Few important names among them are – Manu Chabaria (Jumbo Electronics), Ram Buxami, Bavaraghutu Raghuram Shetty, Yousuf Ali etc. Similarly, in the silicon valley of the United States a large number of software companies are owned by the Indians.

4.3. Stateless Persons of Indian Origin (SPIOs)

After the end of colonial rule in number of countries, the people of Indian origin faced a severe problem of citizenship. They became the „stateless person of Indian Origin‟ (SPIOs). They also became victim of the ethnic politics pursued by these states. In some cases even after some Bi-lateral agreements among states the issue remained unresolved. This problem has been very serious particularly with countries like Sri Lanka, Myanmar, and some East African States.

5. Role of Diaspora in Foreign Policy

The overseas Indians play a significant role in the implementation of foreign policy goals in number of ways. First and foremost task accomplished by them has been that they work as cultural ambassadors of the country. Their presence throughout the world makes the host country aware about the rich culture and heritage of India. Indian ethos, religious beliefs, philosophy, value system, festivals, traditions, foods etc will add familiarity about India in those countries. The activities and behaviour of overseas Indians will make negative/positive impressions about the country in their mind. Since most of the contemporary Indians have made their presence in number of countries by dint of their hard work, sincerity and intellect, it is likely to have positive fallouts in terms of opinion formation in those countries towards India. These positive impressions will work as a confidence- building exercise between India and the host country.

Second, Indians abroad, especially the NRIs, is the main contributors to the foreign exchange reserves of the country. Most of the Indians overseas are remitting their earnings to the home country which is boosting its foreign exchange stocks. This has not only facilitated the government in managing its balance of payment situation, but also facilitating the easy imports of foreign goods and technologies available in hard currencies. Besides, some NRIs are also investing in India‟s infrastructural investments. These investments are providing latest technologies to industry, and simultaneously, making India‟s economic reform programmes a success. The repatriation of money by the Indians earning abroad and investments by the NRIs are preventing India‟s dependence on foreign investors or multinational companies of foreign origin.

Third, overseas Indians do influence the political elites and foreign policy makers in the host country. For instances, during the last few years, nearly 15 million Indians-Americans have influenced the political results in that country through their „intellectual fire power‟ and „fund raising capabilities‟. Recently, an Indian lady has also won the election as Senator in the USA. Through their influential activities, even 115-member India-Caucus has influenced the American policy towards India, particularly USA‟s attitude towards it during the post-Pokhran II period. Finally, overseas Indians could be good source of technology transfer to their home country. Present era is a period of hi-tech where technological innovations are very swift. Besides, the new technologies are very costly, especially with the implementations of intellectual property rights under the WTO regime. At this juncture, some well settled NRIs could be a good source of extension and collaborations of their new technological venture with their counterparts in India. Alternatively, they could establish their own industrial venture in the country, as presently every government in India is encouraging such ventures.

Thus, there are numerous opportunities available in the country for the people of Indian origin to come, invest, settle, and establish joint venture etc independently or in collaborations with some Indian or foreign partners. This becomes all the more attractive with India‟s decision of opening up and liberalizing of its economy. India at present is making serious efforts in integrating its economy to the world market system. All kind of restrictions have been done away with. On the other hand, growing ethnic and racial tensions in some far off countries might have bearing on the minds of some of the NRIs to settle themselves in their home land. These emotional factors might, to some extent, motivate the Indian entrepreneurs‟ rational decisions for investments or sharing of their technological innovations in India.

All the above positive developments, however, do not rule out the problems faced by the overseas Indians of the limitations for the Indian government to accommodate all their concerns. One important problem has been that overseas Indians are not a homogeneous group. They are divided in terms of their religion, language and other such considerations. Besides, in some countries, Indians include all the persons belonging to the countries of the Indian sub-continent. Moreover, all these people are different in terms of their economic background, education, social status, nature of their migration, size of their community, majority-minority syndrome of that country etc. Hence, it will be very difficult to cover them under a single uniform policy.

Secondly, Indian government is also restrained by the political compulsions of community of nations. For instance, when in the recent crisis in Fiji, Mahender Chaudhary‟s government was dismissed; India found itself in a helpless position in extending any meaningful support to the Indo-Fijians. Its efforts to mobilize international sanctions against the dictatorial regime in Suva came to naught as it was soon business as usual for most countries that had anything to do with Fiji. Even due to global community‟s inclination to ignore the apartheid-like situation in Fiji, India has refrained from taking this question to the UN. Thus, compulsions of national interest and state sovereignty limit the scope of interference by other country in a nation‟s affair.

Finally, suggestion of granting the „dual citizenship‟ to them is not going to resolve the issue, rather it is likely to complicate the things further. The move will have dangerous consequences for Indian minority groups in neighbouring countries. This will prevent the process of state and nation-building in those countries. Through this initiatives problem of dual loyalties are bound to arise, which is likely to have grave implications for those countries integrating themselves in a well knit units. Moreover, they are likely to face vulnerabilities in those societies where they had absorbed themselves. The emerging ethnic and racial backlash in some parts of the developed world will bring them more closely to racial conflict and marginalization in those societies. Hence, it will invite more problems for them rather facilitating their positions.

6. Conclusion

From the above analysis it could be discerned that problems of overseas Indians are not so simplistic, rather it involved numerous factors. Consequently, it needs a multi-pronged approach to handle this issue. At present moment, government of India seems to be very keen and sensitive towards this issue. That is why; government has constituted a high level committee to give a detailed report on this issue. L.M.Singhvi, Chairman of that committee, has now submitted a very comprehensive report by taking into considerations the status of PIOs and NRIs in the context of constitutional provisions, current regulations governing their stay, and noting down the aspirations of those people. He has also suggested some broad policy framework and country specific plans. Now it is up to government of India to implement those recommendations by way of appropriate policy decisions. The convening of an international conference in New Delhi on 9 January 2003 for the PIOs, to commemorate Mahatma Gandhi‟s arrival to India from South Africa on this day in 1915, is a step in the right direction.

However, a multi-pronged strategy is required to deal with this complex problem. At the outset, there is urgent need to resolve the issue of stateless people of Indian origin. In this regard, government of India should settle this issue amicably through a one-to-one basis dialogue with the concerned country. Secondly, moral of the PIOs should be boosted. Without intervention in the concerned country‟s sovereignty they are given moral support and advice to excel them so that the country of their domicile may feel proud of their citizenship. Finally, the case of NRIs is actively supported by appropriate policies and programmes. Active intervention for their well being and support of their cause is always made available.

At this juncture, as discussed earlier, dual citizenship is not going to resolve the problems of the NRIs. Rather their smooth entry into social, economic, educational and even political life may be facilitated. They should be provided easy access to India in terms of their need. They should be given more sense of accommodation, if required. Comparatively, they are given advantageous position and special treatment than to other foreigners visiting India. All these measures are likely to encourage and motivate them to feel closer to India and they might extend Indian interests in which so ever capacity and in which so ever manner they are in a position to do.