iNDICA News Bureau-
The Foundation for India and Indian Diaspora Studies (FIIDS), a U.S.-based institute for U.S.-India policy studies and awareness, has urged India’s Finance Minister Nirmala Sitharaman to allow non-resident Indians (NRIs) and Overseas Citizen of India (OCI) card holders to invest directly in the stock market and trade stocks in listed companies in India.
The FIIDS made the request in a letter submitted to the finance minister during her recent visit to California in the course of her 10-day visit to the United States to attend, among other things, the summer meetings of the World Bank group of institutions.
The foundation made this and two other demands based on feedback it had received from NRIs and OCI card holders in a survey it had conducted last year, it said in the letter.
The demand to be allowed to trade directly in Indian stocks received 88 percent approval in the survey, the FIIDS said, with a rating of 4.4 out of a possible 5.
The second demand it raised with the finance minister pertains to double taxation on income earned and taxed in India. The FIIDS urged Nirmala Sitharaman to look into expanding the Double Taxation Avoidance Agreement to avoid filing of taxes in the U.S., with some restrictions, on income already taxed in India. It said this demand received 84 percent approval from the respondents in its survey, with a rating of 4.2 out of 5.
The third demand pertains to repatriation of social security benefits of Indian H1-B expatriates when they return home.
The FIIDS pointed out that when such immigrants return to India, they stand to lose the social security benefits withheld on their income by the Internal Revenue Service of the United States.
It, therefore, urged the finance minister to establish a social security agreement with the U.S. so that these taxes may be repatriated to India and such immigrants may be able to enjoy their benefits. This particular demand received 4 out of 5 ratings in the survey.
Khanderao Kand, director for policy analysis and strategy at FIIDS and signatory on the letter to the finance minister, said NRIs and OCI card holders are the best ambassadors for India and deserve these benefits. He pointed out how, in 1998, when the U.S. imposed sanctions on India after the country conducted nuclear tests and declared itself a nuclear-armed state, NRIs responded with an overwhelming subscription of the Resurgent India Bonds issued by the government led by Prime Minister Atal Bihari Vajpayee.
“NRIs are always ready to financially help India and Indians,” he said. “We need to strengthen their bond with India with win-win financial relations. Hence, we proposed these asks on their behalf to the finance minister.”
