The Overseas Citizen of India (OCI) investment platform proposed fund size to touch $100 billion over five years. BK Modi, Chairman, OCI Investor Forum and President World Federation of United Nations Associations told Aparajita Gupta in an interview how several foreign investors can come to India with the help of these OCIs.
How are Overseas Citizens of India (OCI) planning to do wealth creation in India?
OCIs are global ambassadors of India who have garnered a systemic knowledge of wealth creation, investment and business growth in nations outside of India. Today, the Indian economy stands at a historical tipping point that can set the path for the country to become one of the leading economic superpowers in the world. OCIs have the experience and the expertise to help realise that dream. A lot of OCIs also work with other investors who may be still toying with the idea of whether to invest in India or not. These investors may be more confident coming into the country through an OCI who understands the Indian market and has a strong cultural affinity with the consumer base.
What is the purpose of having $100 billion fund platform?
Across the globe we see how expatriates have been crucial in supporting the national economies of their homelands. People from China, European nations, the US and Japan have led FDI in the nations of their origin. OCIs will do the same for India. Moreover, all investors (foreign and OCIs) understand that the return on investment in India currently is 10-15 per cent, which is much higher than the ‘developed’ world’s average of 2-5 per cent.
OCIs can put their reserves of capital to great use in India but in exchange they must get the respect and incentive they deserve, so that they can expand without fear. This is why diplomatic immunity for them becomes crucial.
How prudent is to set up a fund like this when there is global economic slowdown?
Recessions and years of boom are a part of the economic cycle. Neither is permanent. India is a 1.3 billion people strong economy, at least 60 per cent of who can contribute actively to the work force. Despite the slowdown, all projections show that India will be a $25-30 trillion market by 2050. This is as good a time as any to invest in India, and bring the GDP back to the 7-7.5 per cent average growth rate. All successful OCIs want to create base in India for the long term so that their future generations can settle here. India needs to become a developed nation and OCIs have experienced the benefits of working in a developed economy. Their collective power can help accelerate the pace of development in India. It is now up to the government to look at the big picture and not just focus on temporary ups and downs.
How are various FDI caps going to impact the investments?
The role of FDI in Narendra Modi’s vision of making India a $5 trillion economy by 2025 is going to be crucial. The government needs to tap into the vast reserves of global capital to boost the economy. Through the OCI investor forum we have proposed removing the FDI cap completely for OCI investors so that they can freely invest in the country.