INDIA TO EXTEND DUAL CITIZENSHIP TO MOST FORMER CITIZENS

UNCLAS SECTION 01 OF 02 MUMBAI 000124

SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL IN GOI
SUBJECT: INDIA TO EXTEND DUAL CITIZENSHIP TO MOST FORMER CITIZENS



1. (U) In a January 7 speech in Mumbai, Prime Minister Manmohan
Singh said the GOI would extend Indian citizenship to all
Indians who left the country after 1950 and had been naturalized
in another country. Until recently, Indians lost their
citizenship if they were naturalized elsewhere. Singh made the
announcement during his keynote speech to the third Pravasi
Bharatiya Divas, an annual gathering of expatriate Indians
organized by the Federation of Indian Chambers of Commerce and
Industry (FICCI). About 1,500 visitors of Indian origin attended
the conference, including several hundred from the United
States.

Previous Law Granted Dual Citizenship to Only 16 Countries
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2. (U) The Indian Parliament passed a law in 2004 that promised
citizenship to Indian emigrants who had been naturalized in any
of 16 countries, including the U.S. Implementation of the law
had been slow and bureaucratic, however. The first candidate
was naturalized in November, 2004. Many eligible candidates had
complained of the bureaucratic hurdles in the process, while
others who are now citizens of countries not covered by the law
had complained at being left out.

Most Pakistan, Bangladesh Citizens Will Not Benefit
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3. (U) Singh said he had now ordered the pertinent GOI
ministries to prepare, in a timely fashion, a policy for
extending citizenship to all Indians who emigrated after January
26, 1950, regardless of their current citizenship, thereby
broadening the impact of the Parliamentary resolution. The
cut-off date was the day that the Republic of India was formally
established. By restricting eligibility to emigrants who left
India after this date, most citizens of Pakistan and Bangladesh
born in what is now India but who fled in the first turbulent
years following partition will be excluded.

Previous Citizenship Law's Restrictions
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4. (U) It is unclear whether several restrictions of the 2004
law would be carried over into any new rules that the GOI
intends to promulgate. The 2004 law, while granting
citizenship, did not convey voting rights to re-naturalized
citizens, nor did it allow them to run for political office or
be employed in defense services. Singh made no mention of these
provisions in his speech. He only said that India will restrict
dual citizenship to citizens of those countries where it is
already permitted. The Indian government estimates that about
25 million persons born in India are now living in 110 countries
around the globe. The number of U.S. citizens with Indian
origins has been estimated at about 2 million.

Initial Reactions
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5. (U) Initial reactions to Singh's announcement were positive.
Visa issues were the first to be mentioned in the media. Most
commentators noted that the rules would make it easier for many
Indians living abroad to travel to India. (Note: Currently
former Indian citizens, like other foreigners, need visas to
travel to India. Applying for a visa can be a time-consuming
and frustrating experience at Indian embassies and consulates
abroad. End note.) Dual citizenship will broaden the pool of
potential investors in the select number of industries where
foreign engagement is still limited. Dual citizens should also
benefit from provisions that prevent foreigners from purchasing
property and engaging in real estate development. Several AmCit
businessmen of Indian origin who were present at the conference
told PolEconChief that they wanted more clarity before deciding
to apply for citizenship. One businessman said he wanted to know
the tax implications of the new rules.

Dual Citizenship and India's Modernization Efforts
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6. (U) Singh made it clear that the GOI hopes that newly
re-naturalized citizens would use the benefits of dual
citizenship to invest in India. He explicitly mentioned his aim
of attracting $150 billion in foreign investment over the next
ten years for infrastructure projects, and said that Indians
residing abroad could contribute to that goal. He said he also
hoped that the new citizens would bring know-how and experience
gathered abroad back to the land of their birth. He encouraged
his listeners to invest in schools or hospitals in their home
cities or villages. He tried to show that his government
intended to treat non-resident Indians and former citizens
differently than Indian governments in the past had done. He
said he was "painfully aware" that promises to provide dual
citizenship were not being implemented properly. He said he
understood the impatience that many non-resident Indians had
with the GOI, and he acknowledged that all Indian governments,
including his own, had taken far too much time to address the
concerns of Indians living abroad. He said the application
process would be simplified and made more transparent.

Comment
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7. (U) The Manmohan Singh announcement reflects the rapidly
evolving Indian view of its ethnic diaspora, which in turn
reflects New Delhi's growing level of comfort with India's
international connections. In the past, Indian emigrants had
often been treated with a mixture of scorn and envy by various
Indian governments and by Indian society at large. The Prime
Minister's message was that India needs to welcome its former
citizens and utilize their talents and resources as the country
modernizes. It remains to be seen whether policy changes will
come as quickly as Singh indicated. All conference participants
we spoke with applauded Singh's initiative, but some, citing
their own experience of dealing with the Indian bureaucracy in
business matters, were skeptical that rules could be implemented
as quickly as the Prime Minister had indicated. In any case
dual citizenship, once properly enacted, will no doubt have the
medium- to long-term effect that Singh desires.


8. (U) Embassy New Delhi cleared this cable.

SIMMONS