SAN FRANCISCO (TIP): The India Diaspora Investment Initiative, a unique program President Barack Obama unveiled during his visit to India for the Republic Day celebrations, is seeking investment from Indian American and other investors to support sustainable development in India.
In an interview to the media here Manpreet Singh Anand, deputy assistant administrator in the Asia bureau of the U.S. Agency for International Development, said that it is the first time an initiative earmarked for a specific diaspora community in the U.S. has been launched by USAID.
If it is successful, he added, it could be a model for the agency in other countries.
“It is a new model for development,” Anand said. “It is a more efficient use of resources to leverage innovation through the private sector.” USAID staff has been working on the initiative for about a year, he added.
India was not a random choice for the initiative.
USAID said in a fact sheet that there are three factors why India was selected: “An increased desire on the part of Indian Americans to make a development impact in their home country; a strengthened diaspora connection to India after the election of Prime Minister Narendra Modi; and a strong demand from Indian social businesses seeking debt capital to scale up their programs targeting ‘Base of the Pyramid’ populations.”
USAID, working with a partner – Bethesda, Md.-based Calvert Foundation, a nonprofit with experience in offering “Community Investment Notes” for sustainable development – plans to mobilize at least $50 million in debt financing from private sector financial sector institutions in India and abroad over the next 18 months.
USAID will provide “up to a 50% credit guarantee” to three non-bank finance companies (Caspian Impact Advisors, Intellegrow and Gramen Impact India) and two Indian banks (YES Bank and Ratanakar Bank), who make the loans to small- and medium-sized enterprises in India.
Anand pointed out that without USAID’s credit guarantee, the barriers for Indian SMEs to get the loans “would be almost impossible to overcome.” “We want the Indian diaspora to become engaged and stay engaged,” he added.
It works like this: Investors – Indian Americans or those wanting to support sustainable development in India – purchase a Calvert Foundation Investment Note. Investors can receive fixed interest payments every six months and select investment tenors from one, three, five, seven and even 10 years.
The notes will be available later this year, Anand said. USAID is negotiating on terms of the loan credit guarantees with all five partners.
Calvert will make the loans to the Indian NBFCs and banks, which invest in social projects in healthcare, small businesses, education, agriculture, renewable energy, and other priority areas for India. USAID provides its 50% loan guarantee.
“Our new Indian Diaspora Investment Initiative will allow folks back home to generate a new stream of financing for Indian businesses that are investing in non-traditional, and too often overlooked, markets – from providing healthcare to rural communities, to improving water and sanitation, to opening up those new bank accounts,” Obama told the U.S.-India Business Summit in New Delhi Jan. 26.
USAID Administrator Rajiv Shah, who in February left the agency, said in India in January, “We’ll match the diaspora community’s immense passion and resources to the small businesses that form the backbone of India’s economy.”
“By creating a transparent investment vehicle, any investor can contribute to sustainable, social businesses that create jobs and train a new generation of local entrepreneurs.”
USAID’s annual funding to India -negotiated between the Obama administration and Congress – is currently “just short of $100 million a year,” Anand sadi.
It is the Indian American’s second stint at the agency. Previously, he was a presidential management fellow in the Office of the Global Development Alliance.
He also worked as a senior policy advisor on geopolitical and socioeconomic issues at Chevron Corp., was a senior policy advisor for South and Central Asia issues on the U.S. House Committee on Foreign Affairs, and served in the Office of the U.S. Trade Representative.
Married to a physician, Anand has an MBA and an M.A. in international studies from U.C.-Berkeley and a B.S. in electrical engineering from the University of Texas at Austin.
Another significant program announced by USAID during Obama’s visit was support of Modi’s Jan Dhan initiative to prioritize financial inclusion for all Indian citizens.
USAID is partnering with over 20 U.S., Indian and international private sector organizations and the World Economic Forum to extend the ability for Indian consumers and businesses to participate in the formal economy.
“More than 110 million people have signed up in India (under Jan Dhan) for bank accounts in the last few months,” said Anand, who accompanied Shah and Obama on the India trip in January. “It will really empower consumers in India when they can use cards instead of cash.”
USAID said that currently only six percent of retail enterprises in India can accept digital payments.
One particular area of focus for USAID in India is reducing child mortality rates. “India constitutes 24 percent of the preventable under-five deaths in the world,” Anand said. “There’s a lot we can and are doing (to reduce child mortality rates) in India.”
Last year USAID formed the U.S. Global Development Lab within the agency to leverage science and technology advancements for public-private partnerships around the world, Anand said.
Experts from Google and other technology companies are forming a think-tank within the agency to work with NGOs to solve some of the most pressing social problems around the world.
For more information on the Diaspora Investment Note, visit:
http://www.calvertfoundation.org/india.
What i don’t understood is actually how you’re no longer actually much more well-liked than you might be right now. You’re very intelligent. You understand therefore significantly in relation to this matter, produced me for my part imagine it from numerous numerous angles. Its like men and women are not involved except it is something to do with Woman gaga! Your own stuffs nice. At all times deal with it up!
Wohh just what I was searching for, thankyou for posting.
Great website! I am loving it!! Will be back later to read some more. I am taking your feeds also.
What i don’t understood is actually how you’re not really much more well-liked than you may be now. You’re so intelligent. You realize thus considerably relating to this subject, produced me personally consider it from a lot of varied angles. Its like men and women aren’t fascinated unless it is one thing to accomplish with Lady gaga! Your own stuffs nice. Always maintain it up!
I as well think hence, perfectly indited post! .
Yay google is my world beater assisted me to find this great web site! .
I do not even know how I ended up here, but I thought this post was great. I don’t know who you are but definitely you’re going to a famous blogger if you aren’t already ;) Cheers!
Some really nice stuff on this internet site, I like it.
I like the valuable info you provide in your articles. I’ll bookmark your blog and check again here frequently. I am quite sure I’ll learn lots of new stuff right here! Best of luck for the next!
Some genuinely choice posts on this site, saved to my bookmarks.
I genuinely value your work, Great post.
This site is really a stroll-by for all the information you wanted about this and didn’t know who to ask. Glimpse here, and also you’ll positively discover it.
Just wanna remark on few general things, The website design is perfect, the articles is really wonderful. “Crime does not pay … as well as politics.” by Alfred E. Newman.
Excellent read, I just passed this onto a colleague who was doing some research on that. And he actually bought me lunch because I found it for him smile Therefore let me rephrase that: Thanks for lunch!
You actually make it appear really easy along with your presentation however I find this matter to be actually something which I believe I’d never understand. It kind of feels too complicated and very broad for me. I am taking a look forward in your next put up, I will attempt to get the hang of it!
You are my inspiration, I possess few web logs and often run out from brand :). “Never mistake motion for action.” by Ernest Hemingway.
What’s Happening i am new to this, I stumbled upon this I’ve found It absolutely useful and it has helped me out loads. I hope to contribute & aid other users like its aided me. Good job.
Regards for this post, I am a big big fan of this web site would like to proceed updated.
Hello there, I found your site via Google while searching for a related topic, your website came up, it looks great. I’ve bookmarked it in my google bookmarks.
I not to mention my buddies ended up examining the best guidelines on the blog and so at once I had a terrible feeling I never expressed respect to the blog owner for those secrets. These guys were definitely for this reason excited to read through all of them and have now pretty much been tapping into these things. Thanks for actually being really accommodating as well as for finding varieties of incredible resources millions of individuals are really desperate to know about. My very own sincere apologies for not saying thanks to you sooner.
I believe you have mentioned some very interesting details, regards for the post.
I was recommended this web site by my cousin. I’m not sure whether this post is written by
him as no one else know such detailed about my trouble.
You’re incredible! Thanks!
Thank you for another great post. The place else could anybody get that type of information in such a perfect way of writing? I have a presentation next week, and I’m at the search for such info.
Wow! Thank you! I permanently wanted to write on my site something like that. Can I implement a portion of your post to my website?
Thanks so much for providing individuals with an extremely breathtaking opportunity to read critical reviews from this website. It can be very beneficial and full of a good time for me personally and my office friends to search your website at minimum 3 times a week to read through the latest items you have got. Not to mention, I am just usually fulfilled with the very good techniques you serve. Certain 4 areas in this posting are easily the finest we have had.
Simply wanna comment on few general things, The website layout is perfect, the articles is really superb : D.
Very interesting details you have remarked, thankyou for putting up.
Hey there! I could have sworn I’ve been to this website before but after checking through some of the post I realized it’s new to me. Anyhow, I’m definitely delighted I found it and I’ll be book-marking and checking back frequently!
I have been exploring for a bit for any high-quality articles or blog posts on this kind of area . Exploring in Yahoo I at last stumbled upon this site. Reading this info So i am happy to convey that I’ve an incredibly good uncanny feeling I discovered just what I needed. I most certainly will make sure to don’t forget this web site and give it a glance regularly.
you have a terrific blog right here! would you wish to make some invite posts on my weblog?
I’m still learning from you, while I’m trying to reach my goals. I definitely liked reading all that is written on your blog.Keep the information coming. I enjoyed it!