From Germany to India: The Role of NRIs and PIOs in Economic and Social Development Assistance

Abstract

The Non-Resident Indian (NRI) and People of Indian Origin (PIO) population in Germany is one of the less prominent Indian diaspora communities. Despite its comparatively small size of only about 65,000–75,000 persons, this group plays a significant role in economic and social development assistance from Germany to India. It does so in many different ways. One of the most direct forms of economic support is the transfer of workers’ remittances. In 2010 alone, more than USD 500 million have been sent from Germany to India as remittances, which is particularly impressive given the relatively small size of the Indian population in the country. Another important way of economic engagement involves all sorts of foreign direct investments (FDI) and Indo-German business entrepreneurship in India. Here, the NRI and PIO population has helped in setting up some of the most central supporting organizations, particularly the Indo-German Chamber of Commerce (IGCC) which has been and continues to be of prime importance for the development of good business relations between India and Germany. A less formal, recently established business network is the German-Indian Round Table (GIRT). Another means of development assistance can be found in a plethora of German charity organizations that deal with economic and social challenges in India, mainly with regard to poverty alleviation.