Latest news with #DilipRatha
Time of India
04-07-2025
- Business
- Time of India
State eyes big role of Odias living abroad in realising devpt vision
1 2 3 Bhubaneswar: In a bid to turn Odisha into a developed state by its centenary year in 2036, the state govt is seeking to harness the contributions and remittances of Odias living abroad. Vision Odisha 2036 and 2047 document outlines a strategic plan to engage the global Odia community as partners in progress, aiming for a remittance-led prosperity and a robust growth engine. State govt envisions transforming remittance flows into long-term assets that benefit both migrant families and communities in the state. By building financial pathways, Odisha aims to empower global citizens to invest, co-own and give back with confidence and pride. The plan includes targeted efforts to unlock foreign direct investment, diaspora inflows and cooperative capital at the grassroots level. To foster cultural and economic ties, the govt plans to develop Asmita Bhawans in Indian metros and international cities with significant Odia diaspora presence. These centres will serve as cultural outreach platforms, promoting Odia literature, cuisine, festivals and heritage diplomacy. Additionally, the O-Sampark Policy will be operationalised as a formal institutional mechanism to engage over 1 million global Odias through structured diaspora networks, annual summits, Odia Parbas and digital heritage platforms. The state aims to harness local and global talent through targeted initiatives, including attracting Odias abroad with fiscal and non-fiscal incentives such as tax exemptions, subsidised land and grants. A dedicated NRO business facilitation cell will provide one-stop support for legal, financial and operational queries. Annual global summits will be organised to foster connections, highlight investment opportunities and share success stories. The ambitious plan has elicited mixed responses from the Odia diaspora. Dilip Ratha, lead economist (migration and remittances) at World Bank, praised the initiative, emphasising the potential of the diaspora to complement investment efforts in Odisha. "It's important to create a conducive environment to attract the skills and goodwill of diaspora members," he said. Saurav Choudhury, an IT professional in North Carolina, expressed eagerness among Odias abroad to contribute to their homeland but noted the lack of clear channels and structured opportunities. He suggested the diaspora could play a significant role as policy advisers to help co-design investment, education and tourism policies. Choudhury Rudra Charan Mohanty, environment programme coordinator, UN Centre for Regional Development, emphasised the potential of remittances to benefit local economies and suggested directing funds towards community development programmes, skill-building initiatives and local entrepreneurship. Dubai-based Priyadarshi Panigrahi highlighted the unique blend of global exposure and emotional connection that Odias abroad bring. He suggested that they could act as ambassadors for the state in areas such as tech-enabled services, tourism and agri-processing.
BBC News
07-06-2025
- Business
- BBC News
India leads in remittances - but Trump's tax could deal a blow
A study by Center for Global Development, a Washington-based think tank, suggests the proposed tax could sharply cut formal transfers, with Mexico facing the biggest hit - over $2.6bn annually. Other major losers include India, China, Vietnam and several Latin American nations like Guatemala, the Dominican Republic and El Salvador. To be sure, there's still some confusion surrounding the tax, and final approval is pending Senate action and the President's signature. "The tax applies to all non-citizens and even embassy and UN/World Bank staff. But those who pay taxes can claim a tax credit. Thus, the remittance tax would apply only to those migrants who do not pay taxes. That would mostly include unauthorised migrants (and diplomats)," Dilip Ratha, the World Bank lead economist for migration and remittances, told the BBC. Dr Ratha wrote in a note on LinkedIn that migrants would try to cut remittance costs by turning to informal methods - hand-carrying cash, sending money through friends, couriers, bus drivers or airline staff, arranging local currency payouts via friends in the US, or using hawala, hundi and cryptocurrencies. "Will the proposed tax deter unauthorised immigration to the US? Will it encourage unauthorised migrants to return home?" wonders Dr Ratha. Not quite, he says. A minimum wage job in the US earns over $24,000 a year - roughly four to 30 times more than in many developing countries. Migrants typically send home between $1,800 and $48,000 annually, estimates Dr Ratha. "A 3.5% tax is unlikely to deter these remittances. After all the main motivation for migration - migrants trying to cross oceans and rivers and mountains - is to send money home to help helpless family members."
