SPEECH BY HER EXCELLENCY THE PRESIDENT OF INDIA, SHRIMATI PRATIBHA DEVISINGH PATIL, AT THE 7th PRAVASI BHARATIYA DIVAS CONVENTION

Chennai, Tamil Nadu, 9th January, 2009

Ladies and Gentlemen,

I am happy to be here at the Seventh Pravasi Bharatiya Divas. Let me begin by saying 'welcome home' and wish all of you a happy New Year. I am sure that your deliberations over the past two days would have been useful in understanding and re-connecting with India, the country of your origin. The meeting would also have provided an opportunity to renew contacts with old friends and to build new friendships. All this should contribute, in practical terms, to carry forward our overall agenda of the Indian overseas community engaging with India and vice-versa.

On this day, we commemorate the home coming in 1915, of Mahatma Gandhi, the first great Pravasi, from South Africa to lead a nonviolent struggle for freedom not only for India but also for those who similarly fought for freedom against colonial rule. This beautiful city has over the years distinguished itself as a major economic hub in this region and grown in stature as a modern and educationally as well as culturally vibrant city. I am happy that the first Central Maritime University of the country, which will promote maritime studies and research has been established here.

The Overseas Indian Community from this region has a strong presence in countries of South East Asia as a result of maritime and trade links between South India and South East Asia since ancient times. The people of South India share millennia of history, culture and economic ties with people in several countries.

Today, the Indian Diaspora is estimated at about 25 million and spread across 110 countries. The story of the overseas Indian community is truly the story of ordinary people with extraordinary courage and enterprise. It is a story of trials and tribulations and the eventual triumph of the migrants who traveled to distant lands. Overseas Indians are a large and well educated community. We are proud of the role they play in contributing to the growth of the countries of their adoption.

India too has grown in stature. Besides being acclaimed as a stable and responsible democracy since its independence, India's growth story has, in recent years, captured global imagination. Our focus for the future is to expand economic opportunity for all our people and propel our economy towards higher growth rates. India is seeking to bridge the infrastructure deficit and to achieve energy security, food security and human welfare security. Our task will be undertaken, in a climate of a global slowdown but I believe that we have the capacity to grow even in these difficult times. The monetary and fiscal stimulus packages of the Government should generate the confidence. We should bear in mind that India, with its large dynamic domestic market, has an edge over the others.

The global economic crises has opened the debate of financial management of credit and banking systems which triggered the meltdown in the first instance. It is now raising the fear of recession in several countries. This has had its echo in our region as well. We need to learn lessons from the ongoing crisis and take measures to secure the future growth prospects of the global economy. This is also an opportunity to review existing global financial systems, structures and coordination mechanisms, with a view to taking corrective measures. I would like to mention two aspects in particular.

One, the key lesson is that sustainable economic growth is far too important to be left entirely to the market. The absence of regulation can and does create hazards. We have to create better regulatory systems and "best practices" in the management of capital markets as well as in fiscal policy. Global financial markets need a coherent set of transparent rules for all of the participants in order to have a fair and orderly market. We must enforce them evenly.

The second issue is the need for a global financial architecture that is more inclusive. Restructuring of the International Monetary Fund and the World Bank on a broad basis is necessary as the global economy today is so integrated that what happens in one part of the world can affect different parts of the world. Therefore, we, need to have a more participative and inclusive financial architecture for the management of the global economy that can be more responsive in preventing the recurrence of such economic crises in the future. India can contribute to this process in a significant way.

In India, we have an effective capital market regulator and a strong central bank. Our banks and financial institutions are based on fiduciary responsibility, are adequately capitalized and well regulated. As I mentioned earlier, the growth impetus of the Indian economy stems essentially from its large and growing domestic market. We have in the last five years seen high rates of domestic savings and investment.

Our economy has both the capacity and the resilience to remain on course for economic growth. India offers the opportunity to invest in a stable, growing market. I would like to see overseas Indians benefit from the various economic opportunities that India offers, in particular the huge investment options in India's infrastructure.

Your decision to invest in India will also be a strong rebuff to the terrorists who attacked Mumbai. These attacks were perpetrated by groups inimical to a progressive, prosperous and secular India. Common citizens, policemen, firemen and Special Forces laid down their lives both as innocent victims and valiant warriors to defend the city. Today, on the occasion of the Pravasi Bharatiya Divas, we pay tribute to those valiant men and women.

Ladies and Gentlemen,

I congratulate Mr. Ramdien Sarjoe Vice President of Suriname, Mr. Angidi Chettiar, Vice-President of Mauritius and other distinguished overseas Indians who have been honoured with the conferment of the Pravasi Bharatiya Samman. This award is recognition of your eminence and a salute to your contribution to your people and country. Let me congratulate all of you.

I must on this occasion also commend the role of the overseas Indian workers. There are over five million overseas Indian workers who remit to India equivalent to between US $ 10 to 12 billion every year. They are at the lower end of the income scale; their remittances however, not only support household consumption back home but also provide resources for investment in the rural sector, particularly agriculture. The Ministry of Overseas Indian Affairs should consider whether it is possible to institute a separate set of awards from next year onwards to recognize the contribution of overseas Indian workers. This will serve as a morale booster to them who work tirelessly overseas in difficult conditions. The genuine grievances of the overseas Indian should be addressed expeditiously. The Government could also look at innovative approaches to channelise foreign remittances, especially of workers for productive investment.

Ladies and Gentlemen,

Diasporas are both the products and the drivers of globalization process. However, in this process, worldwide disparities of incomes are widening. Poverty and inequity are incompatible with sustainability. The challenge is to reduce disparities through capacity building and providing the poor, access to knowledge and resources needed for a meaningful life. We must seek to bridge the knowledge divide between the 'haves' and the 'have - nots'.

It is a great challenge. You all can play a decisive role with the knowledge and experience you have gained as academics or scholars, scientists and technologists, professionals or businessmen. I have no doubt, as responsible citizens you will use your knowledge to change things for the better, both for yourselves and society.

I wish all of you success in your endeavors, with best wishes!

Thank you.

Jai Hind.