Indian Diaspora, NRIs and PIOs

The term “Indian diaspora” refers to individuals who are natives of India and have emigrated to zones that are outside the Republic of India’s borders. The “Indian diaspora” includes both NRI (non-resident Indian) and PIO (Persons of Indian Origin). Firstly, it will only be appropriate to understand the difference between these two terms.

NRIs and PIOs:
“Non-resident Indian” is a term exclusive to the Income Tax laws of India, the definition of which is based on the person’s tax status. It is just that the term is commonly used in daily life to speak of Indians residing in other countries. The Income Tax Act states that if an individual doesn’t stay in India for a specific duration, they will be classified as NRI. And, the tax rates and rules applicable to NRIs are different from those related to Indian residents.

Likewise, a PIO is a citizen of an overseas country who has had an Indian passport sometime or other in the past. “PIO” also covers individuals, the parents/grandparents/great grand-parents who were born and permanently resided in India. A foreign citizen is considered a “Person of Indian Origin” when their spouse is either an Indian citizen or a PIO, too.

Here, it must be mentioned that the definition of PIO excludes people of Indian origin who are citizens of certain countries. These are Afghanistan, Pakistan, Bangladesh, Iran, China, Bhutan, Sri Lanka, and Nepal.

Indian diaspora – More details:

As we now are aware of the basic terms, it is going to be worthwhile to go into more detail regarding the Indian diaspora.

• It was when India was under the British regime that a huge number of people started migrating to other countries, for the first time. Most of these persons were forced to work as laborers in other British colonies such as Malaysia and Kenya.

• In contemporary times, the Indian diaspora is the biggest of its kind throughout the World. Almost 18 million people who are natives of India are working/ have settled in numerous countries spread across different parts of the Globe.

• A significant percentage of that diaspora is positively contributing towards the growth of the Indian economy, in the form of investments and remittances, among others.

• The Indian diaspora in many countries like the ones located in the Gulf region, never qualify for citizenship; they are deprived of many rights, as well. Here, the position of the diaspora is that of just second-class citizens. The moment the contract of employment lapses or the persons are no longer able to work, they are sent back to India.

• But, the situation of the Indian diaspora in zones such as Canada, the USA, and Europe is positively different. In due course of time and upon fulfillment of some basic criteria, the Indians living in these places get the option of choosing citizenship.

• More than fifteen years back, the Indian Government introduced the OCI (Overseas Citizenship of India) Scheme, for the benefit of the diaspora. The scheme does not provide citizenship to profiles who have already become citizens of other countries. But under OCI, the diaspora is granted lifetime permission to visit India and they don’t even have to get registered with the concerned authorities. The only thing is that the Indians opting for the scheme aren’t given any political rights.