Transcript Indian Diaspora

A Perspective on the Indian Diaspora
Confusion, Challenges, Opportunities….
Presented By:
Ravi Sidhoo, Head of Global South Asian Business
KBL European Private Bankers
15 May 2013
What will we not talk about?
India “Shining”
Other Stereotypes
What is the Indian Diaspora?
• A generic term to describe the people who migrated from
territories currently within the borders of the Republic of
India. It also refers to their descendants.
• The Diaspora is currently estimated to number over thirty
million, composed of "NRIs" (Indian citizens not residing in
India) and "PIOs" (Persons of Indian Origin who have acquired
the citizenship of some other country).
• Half a million PIOs growth, and half a million NRIs being
added every year.
Current Footprint of the Indian Diaspora
UK
Indian Population 2.5m+
Strong vibrant affluent
community
Mainly entrepreneurs,
professionals.
Middle East (UAE
,Saudi Arabia,
Qatar, Oman)
Indian Population 4m+,
of which
UAE is the main market
UAE
Approx 35% of the
retail banking
population is Indian
Approx 25% of the
commercial banking
population is Indian
Canada
Indian Population
1.5m+
2nd largest but fastest
growing (95% till
2017)
USA
Indian Population 4m+
Growth rate of 106% (19902000)
Wealthy (highest of all
immigrants)
Entrepreneurial
Geographic concentration
(California and New York tri
= 37% of the Indianowned firms and 45% of
Indian population).
Indian businesses growing at
double the pace (34% to
19% of overall US
businesses)
South Africa, Kenya, Nigeria,
Ghana, Mauritius, Tanzania,
Uganda)
Indian Population 3.5m+
Concentrated in South Africa (46%)
Significant links in economy and
wealthy
Large investments. by Indian
corporate houses in recent years
Asia (HK, Singapore,
Malaysia,
Indonesia,
Thailand,
Philippines)
Indian Population
3.5m+
Historic presence and
well entrenched in
economy
Growth through recent
migration of
professionals and
entry of multinational
corporations
Australia, New
Zealand
Indian population 510k+
Large growing Indian
population mainly a NRI
opportunity
Mauritius, India
MAR is a major booking
centre
Strong linkages with India
Total remittances from
Diaspora at $50B + and
growing
Total NRI deposit base of
$47B (9% CAGR from
2000)
Strong outbound flows
from Indian corporate
houses
How they got there?
• Pre independence (17th century until end of the British Raj)
– Indian merchants arrived in Russia in 1615
– In the 19th century workers migrated to British colonies, Mauritius,
Guyana, Caribbean, Fiji, East Africa
– Gujarati and Sindhi merchants settled in Iran, Oman, Bahrain, Dubai,
South Africa, South East Asia and East Africa.
– Started in 1890 in Canada with the British Army
– Early 1900 in USA with British Army and traders during the Gold Rush
– In the 19th century to the UK with the East India Co
• Post Independence
– After the 1970’s oil boom, numerous Indians immigrated to Gulf countries
– 1990’s IT boom attracted a lot of skilled Indian workers
– 1950-1960’s Punjabis came to UK followed by East African’s in 1970s
Why is it relevant?
Political Relevance
•
USA
–
–
–
–
•
Canada
–
–
–
–
•
Over 25 elected officials on Indian origin
Bobby Jindal, Governor of Louisiana
Nikki Hailey, Governor of South Carolina
Swati Dandekar, Iowa State Senator
Over 25 elected / former officials on Indian origin
Bharat Agnihotri, Alberta Liberal MP
Ruby Dhalla, Liberal MP
Ujjal Dosanj, ex Liberal MP
UK
–
–
–
–
Over 25 elected / former officials on Indian origin
Keith Vaz, Labour MP
Lord Dholakia, Liberal Democrat MP
Paul Uppal, Conservative MP
Economic Relevance
• Nearly 5,000 NRIs with networth more than USD 30M,
Wealth-X 2011
• Top 100 Indian names have combined Net Worth of circa
USD280 Billion - Forbes India's 100 Richest, Special Report
2009
• The greatest concentrations of NRIs live in the US, UK, Canada
and Australia
• Singapore, Hong Kong, UAE, Qatar and Bahrain are also
emerging as new wealth hotspots
• At least 150,000 Indian millionaires live outside of India – Cap
Gemini Asia Pacific Wealth Report 2007.
• UK top 100 Asians ( 85% Indian) worth more than USD 70B.
Asian Rich List 2012
Economic Relevance
• US
– Doctors, IT Professional, Hotels / Motels, Property, Politics
• Canada
– IT Professionals, Farmers / Land owners, Transportation, Property,
Politics
• UK / EU
– Retail, Pharmacies, Doctors, Professionals, Property, Politics
• Middle East
– Professionals, Traders
• South East Asia
– Professionals, Traders, Politics
US Census 2010
• There are 35000 Indian American doctors as per census 2010
• 72% are working out of which 66% are employed in
managerial / professional specialities as compared to national
average of 36%
• As of 2002 there were more than 233,000 US firms owned by
Indian Americans
• 71% hold a bachelor’s degree or higher as compared to the
national average of 28%
• Per capita income of USD 88k in 2009 against
national average of 50,221
Comparisons with India
Total Population
1200
30
India
Indian Diapora
Per Capita Income (Nominal)
50,000
1500
India
Indian Diapora
GDP comparisons
GDP (nominal)
1,825
1,500
India
Indian Diapora
Linkages with India
NRI Deposits
58,608
51,682
47,890
41,240
43,672
41,554
36,282
33,266 32,975
28,529
21,684
20,389 20,367 20,498
23,072
25,174
17,156 17,433
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
(As at end - March)
2006
2007
2008
2009
2010
2011
2012
Remittances by Diaspora
70
66
24
24
21
18
14
14
9
India
China
Philippines
Mexico
Nigeria
Egypt
2012 remittances in USD Billions
Pakistan
Bangladesh
Vietnam
7
Lebanon
What Do they want?
Location
Safety
Standard of Living
Political Stability
Good connectivity
Vibrant social life
Robust infrastructure
Strong ethnic community
Private
A robust financial market
Research on emerging markets
Fiscal efficiency
Tax & Wealth planning - international vs domestic
Access to Indian equity / debt
Global property sourcing - India & rest of the world
Private equity opportunities back in India
Corporate
Financials incentives for start up companies
Ability to raise capital ( debt / equity)
Access to a bigger market
Efficient corporate structuring
Creating Awareness
Concluding Remarks
• The Indian Diaspora is one of the most successful migrant populations in
the world
• While it has linkages with India, the Diaspora has an identity of its own
• Contributes approx. 40% of India’s forex reserves
• The Diaspora is very evenly spread, especially when compared to the
Chinese Diaspora which is primarily based in South East Asia. ( 35M out of
50M total)
• Success of the Indian Diaspora has played an important role improving the
relations of India with rest of the world
• Given its smaller size and proximity to Europe, its easier to target the
Indian Diaspora than domestic India
• Any government policy targeted towards India will be boosted by
collaborating with the Indian Diaspora
Ideas for Collaboration
•
•
•
•
•
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Incentives to invest in the local economy
Cultural Events held locally aimed at the Indian Diaspora
Trade Missions targeting the Indian Diaspora in UK, USA, Canada, Middle East and
building awareness
Encourage local bodies which represent the Indian Diaspora and aim at building
awareness around key issues and challenges.
Any policy incentive laid out for India would be boosted if also applicable to
members of the Indian Diaspora
At the same time there could be policies targeted especially for the Indian
Diaspora given their international characteristics
• No better local brand ambassador to India than members of the Indian
Diaspora
Thank You
Questions ?