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India and GCC Countries: Diaspora & Development
International Seminar on
New Dimensions of Indo-Arab Relations
11-12 August 2009
Department of Arabic
Maharaja’s College, Ernakulam
N. ShamnadDepartment of Arabic, University College, Thiruvananthapuram, Kerala
What is « Diaspora » ?
a Greek word meaning ‘dispersion’, referred to the various
Jewish communities «living in exile outside Palestine»
Now commonly used in a generic sense for communities of migrants living or settled in other countries, aware of its origin and identity and maintaining varying degrees of linkages with the mother country
The great Indian diaspora
20 million Indian diaspora or non-resident Indian community worldwide
Envoys of Enterprise Generating an annual income equal to 35 percent of
India's gross domestic product. Account for an economic output of about $400 billion
(Rs 19,20,000 crore). Migration of Indian Diaspora has not resulted in
'Brain-Drain' but 'Brain-Gain'. Significant contribution towards the growth and
development in India. Contributing towards improved Indo-International
relations
Gulf Cooperative Council (GCC) Countries The 6 Gulf Region States of the Arabian Peninsula located at the west coast of the Arabian Gulf and east coast of Red Sea
1. Saudi Arabia2. United Arab Emirates (UAE)3. Kuwait4. Bahrain5. Qatar6. Oman
Arabian Sea
Oman
UAEQatar
Bahrain
KuwaitArabian Gulf
Saudi Arabia
Red Sea
India in GCC countries An estimation of around 6 million (2008-2009) Indians About 40% of the population in the UAE are of Indian
Semiskilled-unskilled workers : 70%White-collar workers : 20% Professionals : 10%
Over 60% have had little formal education A majority of these NRIs are young males. Usually fed and housed in barrack-like tenements. Most of them are unmarried. Formal and impersonal Interactions with the local people. Drawn to their compatriots of a similar social status or background. A large number of Indian associations based on commonalties Initiative of setting up a large number of schools throughout the region
Source: http:// indiandiaspora.nic.in , Report of High Level committee submitted to Govt. of India on Indian Diaspora in the Gulf States Region
Migration: Why ?
Gulf Oil Boom in 1970s Geographical proximity to India Historical relationship Indian Human capital Big projects in gulf Good Income Increase of unemployment in India
Stocks of Indian Migrant Population in the GCC Countries, Selected years: 1975–2001
Source: Rajan, I. S. (2003), «Dynamics of International Migration from India: Its Economic and Social Implications», Centre for Developmental Studies, Thiruvananthapuram.
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
No. of Migrants
1975 1979 1983 1987 1991 2001
Year
Saudi Arabia
UAE
Oman
Kuwait
Qatar
Bahrain
Government measures for better migration management
The Emigration Act, 1983 to ensure protection to vulnerable categories
Registration of «Recruiting Agents» The new Ministry of Overseas Indian Affairs formed in 2004 «Overseas Indian», the house journal of the Ministry Overseas Citizenship of India: the dual citizenship Proposed migrant right to exercise votes from abroad Introduction of a compulsory insurance scheme: «Pravasi
Bharatiya Bima Yojana» Institution of «Pravasi Bharatiya Diwas» since 2003 Set up of NORKA by the Government of Kerala in 1996 Norka-Roots as an interface between the migrants and the
Government of Kerala since 2002 Pravasi Identity Card- project since 2008 Pravasi Welfare Act 2008
The Big Nos ! No systematic legal policy framework to deal with
emigration out of the country
No documentation of international migration data exists in India, not to talk of its various sub–categories
No comprehensive data are available on women migrants
No studies on the impact of skilled migration on
career choices and educational choices in India
Indian Workers Granted Emigration Clearance by Major Indian States, 2000–2005
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2000 2001 2002 2003 2004 2005
Year
No
. of
Mig
ran
ts
Kerala
Tamil Nadu
A. Pradesh
Maharashtra
Karnataka
Rajasthan
Punjab
Others
Source: Khadria, Binod (2006), «India: Skilled Migration to developed countries, Labour
migration to Gulf», P 17.
The case of Kerala
About two million people from Kerala work abroad, almost 90% are in the Gulf
One out of every three or four Indians living in Gulf has been a Keralite.
Non-resident Keralites (NRKs) send back close to US$8 billion in remittances annually, more than double the state's tax revenues
NRKs have remitted more than US$42 billion to Kerala in the last 35 years
A common aspiration: «to emigrate to the Gulf, earn a lot of money, get married, and live happily ever after»
Who is this gulf malayalee?
Many are poor, semi-skilled, taken loans, often from moneylenders, to pay recruitment agents, work 12-hour days, live without their families in harsh conditions, earn and send
most of the money home.
Gulf syndrome: Socio–Economic gains and losses
Significant impact on savings. Increase in the consumption of the people in Kerala House building activities Lack of development potential of remittance receipts and
financial bankruptcy later Creation of a climate of resentment against the «new rich»
among the other sections Removal of the «poverty of education» and the «poverty of
health». Enhanced family investment in education. Opening up of a large number of new schools and colleges Rise in unemployment rate due to education Emergence of «replacement migration» of labour into Kerala
from other Indian states Transformation of about one million women into efficient home
managers. Social and psychological problems of the «Gulf Wives» and the
loneliness of the «Gulf Parents»
Reverse Exodus ? More than 2,00,000 workers in the Gulf have returned to India
as a result of the delay in execution of projects due to recession. The workers in UAE seemed to be most affected. The most visible impact on the construction industry appears to
be in Dubai. No official estimate of how many people are returning every
week. The Indian embassy in the UAE could not give precise figures of
returnees. 200,000 to 500,000 gulf Keralites likely to return home by July
2009 – Dr. T.M. Thomas Isaac, State finance minister.
Around 1,500 to 2,000 fishermen from Sakthikulangara were employed in
prestigious sea reclamation projects in the UAE, Due to the recession, almost 90% are back.
Source: The Guardian, Monday 6 April 2009, http://www.guardian.co.uk/world/2009/apr/06/
How to handle the return ?
No all India level fiscal help The ministry of Overseas Indian Affairs was expecting a
budgetary support for setting up a fund for returning Indian workers but the request could not be accommodated in the union budget of 2009.
The state budget, 2009 allotted Rs. 100 cr. for providing soft loans to Gulf returnees
Kerala has set up a loan package to help returnees start small businesses from their homes.
The state-owned Kerala Financial Corporation (KFC) will handle the package for Gulf returnees by providing entrepreneurial loans at a low interest rate.
Kerala has sought the GCC help to rehabilitate thousands of Gulf returnees by contributing to the state government fund.
Source: The Hindu business line, Thursday, Jun 04, 2009
After word:
It is indeed paradoxical that the average per–hour contribution of each employed worker within India to the production of India’s GDP has been amongst the lowest in the world – a mere 37 cents as compared to the United States’ 37 dollars, i.e., one–hundredth of the latter. This is naturally ironical, because the same average Indian employed abroad contributes very high average share to the GDP of the country !!!
Thank You