The government expects non-resident Indians to pump in about $500 billion into the burgeoning forex reserves of the country in the next 10 years, making them the single largest source of foreign receipts.
"We expect Persons of Indian Origin to send $500 billion alone to India in 10 years time," Overseas Indian Affairs Minister Jagdish Tytler said at an interactive session with Forum of Financial Writers in New Delhi.
Tytler said PIOs remitted $26 billion to India in 2003-04 and $93 billion during 1999-2004.
"We have opened up all the sectors for NRI investment except agriculture," Tytler said.
On the education problems faced by expats, particularly in the Gulf countries, Tytler said his ministry is closely working with other ministries for providing educational facilities to the children of the NRIs.
"We are exploring all the possibilities like recognising educational institutions set up by PIOs abroad or in India, besides helping them to tie-up with big educational institutions in the country," he said.
PIOs will invest in the educational infrastructure and the government will facilitate the process by making necessary changes in the law.
Government may also consider creating 'Educational Free Zones' for setting up educational institutions by PIOs.
Tytler said the government has implemented several welfare measures like revoking tax on interest earned on inward remittances in Indian banks.
Fulfilling the demand for cheaper air fares, Air India Express, the budget airlines has started operating direct flights to destinations in the Gulf from Kerala, he said.
