HVK Archives: NRIs donate to counter sanctions
NRIs donate to counter sanctions - The Times of India
Mahendra Ved
()
May 14, 1998
Title: NRIs donate to counter sanctions
Author: Mahendra Ved
Publication: The Times of India
Date: May 14, 1998
Anticipating an appeal from the Indian government, several
overseas organisations of non-resident Indians have already begun
to collect funds to tide over the sanctions from the world
community in the wake of the series of nuclear tests conducted
this week.
Besides the funds, efforts are on to attract a large dose of NRI
investments in India. No target has been set for either of the
two areas, but the organisers are hopeful of good response.
Active in this effort are U.S. and U.K.-based organisations. Some
of them are unofficial overseas frontal organisations of the
Bharatiya Janata Party and the Congress. None of the names are
as yet being mentioned.
Officials in the parties and the government who are functioning
at the Indian end are tight-lipped. But long-distance calls and
faxes have become more frequent since Monday. The organisations
are confident of roping in a large number of individuals and
middle-level entrepreneurs who have done well in their respective
fields.
Efforts are also being mounted to counter the alarming headlines
in the Western media and television programmes that project India
as "a poor country hankering for false military glory".
"We are confident we shall be able to arouse the spirit of
patriotism among the Indians who want their country of origin to
stand up and be counted in the world community, as this alone can
enhance their own status in the country where they have chosen to
work," said a party official who did not wish to be identified.
Official figures say total outstanding NRI deposits till March
1997 are to the tune of U.S. $20.5 billion. The annual rate of
deposits has also been rising and in 1996-97, the inflow was to
the tune of $3.5 billion. Besides, remittances from Indians
working abroad is an annual $2 billion. The Chinese diaspora, by
comparison, contribute 80 per cent of the annual $60 billion
ploughed into the mainland China.
According to initial estimates worked out in the government, the
"loss" to India as a result of the sanctions may be no more than
$200 million annually. This would not be difficult to surmount.
However, some of the areas where they could be applied are
crucial and would require a special effort by the government to
bridge. the gap. Among them is family planning, where the
government is supplementing the effort of the bureaucratic
network and NGOs.
Reports from Washington speak of sanctions being imposed by the
U.S.'s department of defence.
There is not much of military purchase by India thanks to the
U.S. laws which prohibit the sale, but military training would be
affected. The Indo-U.S. cooperation in this field took off after
1992 and has been doing well.
The real concern for India would come if technical transfers and
assistance, which begun in recent years after years of
reservations on the part of the U.S., are stopped in, the
development of the Light Corn, bat Aircraft (LCA).
India also depends on engine from the U.S. for the main battle
tank (MBT) and equipment for the advanced light helicopter (ALH),
besides some sophisticated items.
Bilateral trade is another area and assessment is still being
made as to how far it would affect the private sector
transactions which form a bulk of the trade with the U.S., Japan,
Germany and other countries. Details are being worked out on the
extent to which these could be hampered and alternate routes that
would need to be adopted.
The U.S. support is crucial for the loans from multilateral aid
agencies. Here again the Indian dependence on these is limited
and its, extent is being worked out.
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