There is a need to formulate an appropriate policy to motivate non-resident Indians and persons of Indian origin, for investments in the country, a study conducted by the Confederation of Indian Industry said.
The study included a comparative analysis of the Indian and Chinese diaspora and the Chinese government's policy to attract investments, which revealed that the Chinese government provided special rules and regulations to encourage investments, the study said.
"No such steps have been taken by our government to encourage NRIs and PIOs to invest in India," the study pointed out.
The study, which was circulated for discussions, to the participants of the Partnership Summit 2003 being held in Hyderabad, also said NRIs with a combined wealth of approximately $300 million, constitute a huge untapped potential and can contribute significantly to the country's development.
The CII while making recommendations to the ministries of external affairs and industry said the NRIs should be updated on all new economic policies and business opportunities.
In response to the study paper, CII said, NRIs and PIOs in the US, UK, Canada, Singapore and 12 other countries showed specific interest in investing in areas such as computer software, media and telecom, quality control and training.