Asean-Indians are encouraged by announcements from the Narendra Modi government that it plans to introduce a stable tax regime and make it as easy as possible for them to do business in the country.
The prospect of more predictable and transparent policies impressed the hundreds of participants in the three-day long Pravasi Bharatiya Divas (PBD), an annual gathering of overseas Indians held last week in Ahmedabad, the capital of Gujarat State.
The Asean-Indians came mainly from Malaysia, Singapore, Thailand, Myanmar, Indonesia and the Philippines. Malaysia sent 250 participants, while the Singapore delegation was headed by S Iswaran, second minister for Trade and Industry. The Thai contingent included Atul Jogani, president of the Indian Thai Diamond & Coloured Stone Association. The majority of Modi's ministers and 10 state chief ministers also took part.
"This was the first time that the ministers were moving around freely and we could put our ideas across to them. The Modi government is pro-business and NRI (Non-resident Indian) friendly," Mr Jogani told Asia Focus. A diamond merchant, he is trying to shift part of his business to his home country.
Jogani sees great potential for bilateral trade between India and Thailand, forecasting a doubling in value to $20 billion in the next three years. He believes India could learn from Thailand about building logistics, infrastructure and transport facilities.
Tushar Doshi, who heads the Gujarati Society in Singapore, said he believed Modi and his ministers were on same page in an effort to make India business friendly. "It remains to be seen how well the government departments are able to execute its plans," he remarked.
Datuk Bhupatrai Shah, a bank director and former senior finance ministry official in Malaysia, said he was overwhelmed by the infrastructure in Ahmedabad. He said he could see things happening in India and was hopeful that the country would do away with cumbersome rules and give impetus to decision-making. Shah wants India to allow 100% foreign ownership of export-oriented industrial zones.
Ganabatirau Verman raised the issue of discrimination against Indians in Malaysia. He regretted there was no partnership between schools and businesses of the two countries. "Asing tanpa izin, or 'illegal foreigners', is what local Malaysians call people of Indian origin and we have to live with the tag all our lives," said Verman, who asked the Indian government to use its clout to ensure a level playing field for Indians living in Malaysia.
Around 20 million Indians live in 200 countries worldwide. Those in Asean include 2.4 million in Malaysia, 2 million in Myanmar, 400,000 in Thailand and 320,000 in Singapore.
During his inaugural address at the forum, Modi announced the merger of PIO (Person of Indian Origin) cards into OCI (Overseas Citizen of India) cards, conferring lifetime visas on holders. Minors with OCI parents could also register for the same privilege. The premier said Pravasi Bharatiya Kendra, to serve the Indian diaspora, would open in New Delhi soon.
The PBD was followed by a three-dayVibrant Gujarat Global Investors Summit, which attracted UN Secretary General Ban Ki-moon, US Secretary of State John Kerry, World Bank president Jim Yong Kim and ministers from many countries.
Modi used the event to promise a more business-friendly approach and a stable tax regime to investors. His government has already introduced 100% foreign direct investment in railways, liberalised foreign investment in construction, and an increased cap on FDI in defence and insurance ventures to 49%. It is in the process of enacting labour reforms and replacing the plethora of taxes with a uniform Goods and Services Tax (GST).