US embassy cable - 05MUMBAI124

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 
--------------------------------------------- ------------- 
 
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 
--------------------------------------------- ------ 
 
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 
--------------------------------------- 
 
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 
----------------- 
 
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 
--------------------------------------------- ----- 
 
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 
------- 
 
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