by Moiz Mannan
Not only are the northern states of India now sending more workers abroad, but the governments of states like Madhya Pradesh, Bihar and Punjab are now adopting methods similar to those used by southern provinces such as Kerala and Andhra Pradesh to attract investments from their diaspora abroad.
Some recent statistics released by the Ministry of Overseas Indians Affairs (MOIA) showed that whereas the numbers of outbound migrant workers from Kerala and Tamil Nadu have actually declined in the past five to six years, those from states like Bihar and Uttar Pradesh have more than doubled during this period.
Generally termed as backward in terms of development, some of the northern states are now gearing up to boost their economies with the help of investments from non-resident Indians (NRIs). As mentioned earlier, they have the examples of Kerala, Andhra Pradesh and Gujarat to see how win-win partnerships with NRIs can change the face of local and regional economies. At a recent global investors’ meet, the sprawling state of Madhya Pradesh announced the formation of a dedicated body to facilitate investments in the state by its people living abroad.
This body, known as the Madhya Pradesh Global Foundation, will open contact offices across 20 nations. Media reports quoted Industry Minister Kailash Vijayavergiya as saying that a dedicated website for business networking, being set up by the Foundation, would facilitate investments from non-residents.
Madhya Pradesh Government has been trying for a few years now to attract investment in India and abroad by organising investors meet at the national and international level. The state is the fourth largest producer of agricultural products in India with lowest consumption of fertilizer per hectare. More than 40 per cent of cultivable land out of total cultivable land is irrigated. It is considered to be attractive for investment due to its strategic central location, availability of resources and infrastructure.
The government has passed Investment Facilitation Act 2008 to assist investors in getting their clearances under a Single Window scheme. The state is looking for economic development through investment in agriculture, industry, infrastructure and services sector. Ernst & Young through FICCI has prepared a report on possibilities of various sectors of investment to be promoted for investment in Madhya Pradesh. Sector-wise reports have also been prepared for mining, food processing, IT & ITS, energy, warehousing, forests and infrastructure.
Madhya Pradesh’s strategic location has also led to its emergence as an important destination for automobile and auto component as well as the pharmaceutical industries with major players entering in a big way.
At last week’s investors’ meet, Aditya Birla Group Chairman Kumar Mangalam Birla said that Rs16,000 crore investment has already been made in the state in which seven thousand persons have got jobs. He promised to make a further investment of Rs20,000 crore in solar energy, textile and cement sectors. Subrat Roy of Sahara Group promised another Rs20,000 crore in the dairy sector. Essel Group Chairman Subhash Chandra spoke about the development of a residential township in Chambal area at a cost of Rs35,000 crore.
According to reports from Indore, on the very first day of the event, 113 MoUs worth Rs670 crore were inked with MSMEs and 107 Expression of Interest (EOI) worth Rs1,128 crore were drafted between the state government and investors.
On its part, the Punjab government is preparing a “comprehensive package” for NRI Punjabis settled in various countries. The new measures are likely to be announced at a three-day NRI convention to be held here January 3-5 next year.
The package may address pressing issues of Punjabi NRIs such as illegal occupation of property, illegal migration of youth and fraudulent marriages, besides measures to facilitate NRI investment.
Meanwhile, the Bihar government was busy organising a road show at the sixth Regional Pravasi Bharatiya Divas convention in Mauritius. The road show was aimed at highlighting the ‘Know Your Roots’ campaign for the people of Indian origin (PIO). According to one report, some 70 percent of the Mauritius population is of Indian origin and almost 50 percent of Indians hail from Bihar. Nearly 40 percent of the foreign direct investment into India is routed through Mauritius.
The India business roundtable organised by the Overseas Indian Facilitation Centre (OIFC) and the Indian high commission in Mauritius showcased the free services that the Indian diaspora can leverage to increase their economic engagement with India.
