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Committee suggests welfare fund for Indian diaspora

A high level committee on the Indian diaspora has suggested establishing a welfare fund for repatriated overseas workers in distress and negotiating a Standard Labour Export Agreement with the host countries.

In its report presented to Prime Minister Atal Bihari Vajpayee in New Delhi on Tuesday, the committee suggested monitoring and supervision of both the employment contracts and the conditions of overseas workers by the Indian missions.

The committee chaired by noted jurist L M Singhvi recommended launching compulsory insurance schemes covering the risks faced by the overseas workers and establishing a mechanism for pre-departure counselling and the provision of legal assistance locally.

Turning to the economic angle, the committee suggested that the government should consider setting up special economic zones, exclusively for projects to be set up by NRIs/PIOs. The diaspora could be involved in the development of such zones.

A dedicated single-window set up, which would provide consultancy services for overseas Indian investors and be a liaison point for getting various clearances, was imperative for the success of this measure.

Stating that some Indian banks had already made special arrangements to facilitate payments in rupees against incoming foreign exchange remittances of labour force in the Gulf region, it felt that similar arrangements should be replicated for the diaspora in other countries too.

Noting the high incidence of frauds in the bank accounts of the NRIs/PIOs, the committee recommended that the instructions of the Reserve Bank of India in this regard should be strictly adhered to by all commercial banks.

The government should consider issuing special infrastructure bonds for attracting NRI/PIO investments.

Extending fiscal incentives such as reducing corporate tax rates to levels at or below competitive international levels, removing restrictions on repatriation of profits and eliminating needless licensing requirements would be extremely useful in attracting investment, it said.

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