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TRANSCRIPT
AWARENESS AND AVAILING OF FACILITIES AND INCENTIVES
Introduction
An attempt has been made in the previous chapter
to analyse the investment made by NRIs in shares, and
debentures of the Indian companies. Analysis was also
extended to company deposits, units of UTI, etc. This
chapter attempts to discuss mainly the awareness and
availing of the facilities and incentives offered to NRIs.
Before discussing this aspect it would be better
to understand some of the main characteristic features of
the sample respondents such as age, education, religion,
occupation, income, country of residence, type and size of
the family, etc.
It is estimated that in all about 10 to 12 million
NRIs excluding persons of Indian origin with non-Indian
citizenship, are spread all over the world. Their
investment potential is substantial at around Rs.250 to 300
billions. However these NRIs form a heterogeneous group;
for instance, NRIs from West Asia constitute skilled and
semi-skilled workers who sought employment in the wake of
the oil boom, whereas, NRIs in developed countries are
highly qualified professionals like doctors, engineers,
software specialists, etc. While there are about 1.7 lakh
people of Indian origin in Kuwait, some 70,000 Indians live
in the USA making a significant contribution to America's
scarce pool of sophisticated skills and scientific and
professional knowledge.
The contribution of NRIs to India's development
has been of a varied nature. NRIs from West Asia, through
remittances, have contributed to boost the foreien exchange
reserves of the country. Roughly, the share of private
transfers from West Asia is more than a third of the total
invisible exports. On the otherhand, NRIs from the USA and
Europe, being highly professional and prosperous, make their
contribution to India's economic development in the form of
technology, and in managerial fields.
Of the total respondents of 132, 96.21 per cent
are presently Indian, i.e., still holding Indian Passport,
and the rest are of other nationality, though of Indian
origin. On studying their visits to India, it is found that
while about 91 per cent of the respondents visit India once
in a year, ~ i n e per cent of them visit once in a couple of
years either for personal or business purposes.
Country of Residence
For the purpose of analysis the 'Country of
residence' of the respondents has been discussed under four
categories, viz., 'A' (the USA and Canada), 'AA' (Asian
Countries including Saudi Arabia, Kuwait, Iraq, Iran,
Singapore, Japan, etc.), 'E' (European countries including
the U K , FRG, Switzerland, France, Italy, Sweden, Australia,
etc.), 'EE' (East European countries including the GDR,
Czechoslovakia, Hungary, etc.).
Age group-wise distribution of respondents
according to their country of residence reveals that a vast
majority of them are in the age group of '36 to 45 years'.
Analysis of their level of education shows that about 50 per
cent of the respondents who have education only upto the
level of 'Matriculation' live in 'AA' group countries.
Besides, the chi-square value also supports the significant
relationship between the country of residence and the level
of education, and that between the country of residence and
religion.
Occupation-wise distribution of the respondents
shows that a majority of them in 'AA' group countries are
employed as either 'worker or technician'. In contrast, a
huge majority of them who stay in 'E' and 'EE' group
countries work as doctors, engineers, supervisors, and
executives, Distribution of respondents according to income
shows that there is a significant relationship between the
country of residence and income of the respondents and also
the family size.
The distribution of respondents according to their
age and level of income shows that a majority of the middle
aged (36 to 45 years) group respondents earn an annual
income between Rs.30,001 and Rs.50,000. The chi-square
analysis reveals that there is a significant relationship
between the level of education and the income of the
respondents, and between the level of education and religion
as well. Further a significant relationship is also found
between the religion and reason for leaving India.
What follows is an analysis of the awareness and
availing of the investment facilities and incentives by the
respondents. For this purpose, the abbreviations 'A'
(Aware), 'NA' (Not Aware), 'AV' (Avail), and 'NAV' (Not
Avail) have been used for presenting the implications in a
precise manner.
Awareness and Availing of the Facilities According to Country of Residence, Religion, Age Group, and Level of In-
An attempt has been made to study the awareness
and availing of the investment facilities according to
country of residence of the NRI investors, and the results
are presented in table VI.l. The table reveals that a
T a a g VI.l
A.r renoeps aod A v a i l i o g of Faciltiee According to of Mi-, Religim,
Variables
Figures in Parentheses Denote total mean scores of percentages
Age Oruop, and ~esel of ~ t i c a
muntry of Residence
Religion
Age Croup
Level of Education
Source:
A
AA
E
EE
Hindu
Muslim
Cnristien
Sikh
Upto 35
36 to 45
46 8 above
Upto Matric
Degrees 8 FG Degrees
. Diploma & Tech. Degrees
Canputed fmn Survey
Total Mean
Awareness
A
17.5 (14.54)
18.3 (14.97)
6.31 (51.93)
22.4 (18.36)
59.7 (49.27)
21.8 (17.67)
17 (14.11)
2.28 (18.94)
20 (17.92)
79.9 (65.94)
19.4 (16.14)
17.8 (14.52)
59.7 (49.7 )
43.8 (35.8 )
Data
Scores
N A ----
0.5 ( 1.68)
3.7 (47.53)
3.7 (20.02)
2.6 (10.76)
---- 3.3
(11.27)
4.2 (55.46)
1 (5.11)
1.2 ( 8.15)
---- 5
(58.09)
5.1 (18.57)
0.6 ( 3.34)
4.2 (55.74)
1.3 ( 6.2 )
5.1 (18.05)
Availing
AV
12.3 (32.37)
9.5 (14.70)
22.4 (37.56)
4.4 (15.36)
27.7 (54.03)
8.3 (12.Rr4)
9 (19.97)
8.5 (13.4 )
8.8 (13.58)
31 (48.25)
13.6 (38.17)
---- 5.8 (7.77)
27.8 (56.27)
19.9 (35.96)
----
NAV
5.7 ( 6.45)
12.5 (17.44)
44.6 (48.76)
15.7 (17.36)
35.3 (38.83)
18.7 (34.32)
9 (9.21)
13.1 (18.32)
18.1 (23.98)
54 (58.78)
6.4 ( 7.24)
16.2 (23.19)
33.2 (34.75)
29.1 (32.07)
majority of the respondents who belong to ' A A ' group
countries are very well aware of the investment facilities;
the mean scores value of the respondents alone accounts for
17.5. The mean scores value of ttie res~ondents for 'EE'
group countries accounts for 22.4. However it is seen from
the 'country of residence1-wise classification that the
respandents who belong to ' E ' group countries lead among the
various categories, in the availing of the investment
facilities.
It is clear from the analysis that on an
aggregate, the mean scores value for the respondents who are
aware of the investment facilities accounts for 121.3; that
for those who are not aware of the schemes accounts for
10.7. On the other hand, the respondents, who avail and who
do not avail those facilities record respectively 53.5 and
78.5. However, it is seen that the NRERJFCNR bank account
deposits are familiar to all of the respondents irrespective
of their country of residence. It can be seen that out of
the total respondents contacted no one was unaware of the
NREH/FCNR bank account deposit. While all the respondents
avail themselves of the NRER scheme, only 9 respondents did
not maintain an FCNR account.
The table further reveals that all the respondents 1
who belong to 'EE' group countries are familiar with the
NRER/FCNR bank accounts and direct investments of both, '40
per cent' and ' 74 per cent" schemes. On the otherhand, NRIs
who stay in ' A A ' group countries know about all these
schemes excepting 2 respondents each who do not know the
non-repatriable direct investment schemes and company
deposits. However all of them did invest in government
securities.
It can be concluded that as far as the bank
deposit accounts are concerned, the respondents are aware of
the repatriable portfolio investment schemes whatever be
their country of residence. However, there is a significant
relationship between the country of residence and the
awareness of the other investment facilities, and it is
proved by the calculated value of chi-square (44.20) at 6
degrees of freedom at 5 per cent level.
An attempt has been made to identify the
relationship between religion and awareness of the
investment facilities of the respondents. It is also
observed from the table that all the respondents
irrespective of their religion are aware of the investment
facilities of bank account deposits, and they also avail
themselves of such facilities. It is seen that all the 63
'Hindu' respondents are aware of the existence of the
NRER/FCNR bank account facilities, and all excepting three
have availed themselves of such facilities. As far as the
'40 per cent' and '74 per cent' schemes are concerned the
same trend prevails with regard to the awareness of the
schemes; but only 20 and 38 respondents avail themselves of
the '40 per cent' and the '74 per cent' schemes
respectively.
The mean scores value for the data of 'Hindu' and
'Muslim' respondents show that 49.27 per cent and 17.67 per
cent respectively of the respondents are aware of those
facilities. While 54.03 per cent and 12.59 per cent (mean
Scores) respectively could invest in the available schemes,
38.83 per cent and 34.32 per cent of the respondents
respcctively did not invest in the available schemes. 14.11
per cent of the 'Christian' and 18.94 per cent of the 'Sikh'
respondents are aware of such facilities; 19.97 per cent
and 13.40 per cent of the respondents respectively actually
avail themselves of such facilities. So, it can be
concluded that there is an insignificant relationship
between awareness and availing of the investment facilities
among the religious groups of the respondents. It is also
proved by the computed chi-square value of 18.26 at 9
degrees of freedom at 5 per cent level.
An attempt has been made to correlate the
relationship between the 'awareness and availing of the
facilities', and 'age-groups'. It is found (vide table VI.l)
that there is no difference at all in the awareness of the
bank account facility among all the categories of age group.
However, there are some differences in the availing of such
facilities. It is seen that out of 27 respondents, who come
under the age group of 'upto 3 5 ' , only 22 avail themselves
of the facilities, whereas out of 20 respondents who belong
to the same category of age group, only one does not avail
himself of the FCNR scheme of bank account facility. The
mean scores value of the respondents for the awareness of
the facilities shows that 17.92 per cent and 65.94 per cent
of them who belong to the age groups of 'upto 35' and '36 to
45' respectively are aware of the investment facilities.
16.14 per cent of the respondents of the age group of ' 46 &
above' are also well aware of such facilities. The mean
scores value of the respondents for availing such facilities
shows that 13.58 per cent, 48.25 per cent, and 38.17 per
cent of the respondents of the age groups of 'upto 3 5 ' , '36
to 4 5 ' , and ' 46 & above'respectively avail themselves of
such facilities. So, it can be concluded that there is some
difference among the age groups in awareness and availing of
the investment facilities. However it is proved by the chi-
square value of 13.29, at 6 degrees of freedom at 5 per cent
level, that there is an insignificant relationship among the
age groups as far as the awareness and availing of various
facilities are concerned.
Education is the main factor that determines a
person's ability, awareness and availing of facilities, etc.
It is observed from the analysis of data pertaining to
awareness nnd availing of the facilities and level of
education (vide table VI.l) that there is not much
difference among the respondents of their awareness of the
facilities whatever be the level of education. It can be
seen from the table that all of the respondents irrespective
of their level of education are aware of all such investment
facilities. Except a very few respondents all of them have
availed themselves of such facilities also.
The mean scores value of the respondents show that
14.52 per cent, 49.7 per cent and 35.79 per cent of them of
the categories 'upto Matric', 'Degree and PG Degree', and
'Diploma and Technical Degree' respectively are aware of the
facilities. On the other hand, 7.77 per cent, 56.27 per
cent, and 35.96 per cent (mean scores) of the respondents of
the said educational levels respectively avail themselves of
such facilities actually. The mean scores value of the
respondents also show that 4.2 per cent, 1.3 per cent, and
5.1 per cent respectively are not aware of such investment
facilities. So, it can be concluded that there is not much
difference among the kategories of educational level
regarding the awareness and availing of the investment
facilities. It is also evident from the computed chi-square
value of 9.35, that it shows insignificant relationship at 6
degrees of freedom at 5 per cent level.
Awareness and Availing of Facilities According to Occupation, Level of Income, Duration of Stay Abroad, and Iteasons for Leaving India
Awareness and availing of facilities according to
the occupation of the respondents are analysed, and the
results are shown in table VI.2. It is observed from the
table that there is not much difference among the occupation
groups of the respondents regarding the awareness and
availing of such facilities. While almost all of the
respondents are aware and avail themselves of the NRER
account of bank deposit irrespective of their occupation,
there are few respondents who are aware of such facilities
but do not avail themselves of the FCNR account. With
regard to direct investment, the respondents who work as
either 'Supervisors & Executives' or 'Doctors & Engineers'
are well aware of such facilities; however, the category of
respondents of 'Supervisors & Executives' avail themselves
of such facilities better than the resp~ndents who serve as
'Doctors & Engineers'. The same type of climate also exists
in portfolio investment facilities in the case of these two
categories of respondents regarding the awareness and
availing of the facilities.
The mean scores value of the respondents who work
as 'Workers and Technicians' and 'Supervisors & Executives'
show that 16.69 per cent and 33.63 per cent respectively of
them are well aware of such facilities. On the otherhand,
T m VI.2
A d l i n g of Pacilties kcording to ~mrpaticm -1 of In-, m t i m Of
Variables
Figures in Parentheses Denote total mean scores of percentages
179
8-y Abroad and Reaams for Leaa'~-
Occupation
Level of I n c m
Duration of Stay Abroad
Reasons for Leaving India
Source:
Workers & Technicians
Supervisors & Executives
Dxtors & Engineers
Businessmen 8 Others
Upto Rs.30,000
Rs.30001to50,WO
Rs.50001 & above
Upto 3 years
4 to 6 years
7 8 more years
For Higher Studies
or Employment
For Business
For any Other Purpose
Qmplted from Survey
Total Mean
Awareness
A
20.8 (16.69)
40.4 (33.63)
31.4 (26.14)
28.7 (23.53)
12.4 (9.95)
52 (42.99)
56.9 (42.4)
11.4 ( 7.98)
61.7 (50.92)
48.2 (40.11)
17.4 (14.47)
60.1 (49.69)
29.7 (24.48)
14.1 (11.35)
Data
Scores
N A ----
5.2 (30.85)
0.6 (2.35)
0.6 (3.08)
4.3 (43.72)
4.6 (58.13)
3 (9.28)
3.1 (10.6)
---- 5.6
(58.87)
4.3 (18.71)
0.8 (2.42)
---- 0.6
( 3.28)
3.9 (20.75)
2.3 (13.65)
3.9 (42.31)
Availing
AV
7.3 (9.09)
18.2 (36.29)
17.2 (39.7)
10.8 (14.92)
5.1 (7.95)
18.6 (31.04)
29.8 (61.01)
3.9 ( 4.78)
19.6 (30.47)
30 (64.75)
9.5 (17.57)
30.7 (56.45)
8.6 (19.54)
4.7 ( 6.44)
----
NAV
18.7 (25.53)
22.8 (23.62)
14.8 (14.6)
22.2 (26.25)
11.9 (17.55)
36.4 (42.3)
30.2 (30.15)
13.1 (20.9 )
46.4 (51)
19 (18.09)
8.5 ( 8.34)
33.3 (33.42)
23.4 (25.28)
13.3 (22.96)
the mean scores value of the respondents shows that those
who come under the categories of 'Doctors & Engineers' and
'Businessmen & others' record 26.14 per cent and 23.53 per
cent for awareness of such facilities. So it is seen that
while there is much difference between the occupation
categories, 'Workers & Technicians' and 'Supervisors &
Executives' regarding the awareness of such facilities, that
between the categories 'Doctors & Engineers' and
'Businessmen & others'is rather small. However, the mean
scores value of the respondents for the said categories of
occupation shows that there is not much differences between
the two categories, 'Supervisors & Executives' and 'Doctors
& Engineers' in availing such facilities. At the same time,
not much difference is found between 'Workers 8 Technicians'
and 'Businessmen & others' in availing such facilities. So
it can be concluded that the respondents who work as either
'Supervisors & Executives' or 'Doctors & Engineers' avail
themselves well of the investment facilities than the other
occupation categories of the respondents. However, an
insignificant relationship is seen in the computed chi-
square value of 15.16 at 9 degrees of freedom at 5 per cent
level.
The income of the respondents may also influence
the awareness and availing of such investment facilities.
An attempt has been made to identify the influence of income
in this regard. It is inferred from the analysis (vide
table VI.2) that there is no influence of income on
awareness and availing of the bank account facilities,
whereas, it has a small influence on awareness of direct and
portfolio investment facilities. Accordingly three
respondents are not aware of the '40 per cent' and '74 per
cent' schemes of direct investment facilities. However the
'middle and upper income group' respondents are well aware
of all the investment facilities except a few schemes. So,
it can be understood that there is some influence of income
on awareness and availing of such investment facilities.
The mean scores value of the respondents who come
under the income brackets of 'upto Rs.30,0001 and 'Rs.30,001
to 50,000' shows that 9.95 per cent and 42.99 per cent of
them respectively are well aware of such investment
facilities. On the other hand, 42.40 per cent of the
respondents who come under the higher income bracket are
also aware of the facilities. So, it is understood that
there is not much difference between the middle income and
higher income groups of the respondents regarding the
awareness of the facilities.
However, the lower income bracket respondents are
less in number regarding the awareness of the facilities.
The mean scores value of the respondents for the three
categories of income group (viz., lower, middle, and higher)
shows that 5.1 per cent, 18.6 per cent, and 29.8 per cent
respectively avail themselves of such investment
facilities. So it can be concluded that the level of income
of the respondents has a direct influence on the awareness
and availing of the investment facilities. However, the
computed value (13.27) of chi-square proves that there is an
insignificant relationship between the different categories
of level of income of the respondents regarding the
awareness and availing of such investment facilities.
An attempt has been made to estimate the
differences of the relationship between the 'reasons for
leaving India' and awareness and availing of the investment
facilities. It is understood that there is not much
difference between the different categories of 'reasons for
leaving India' regarding the awareness of the facilities.
It is seen that all of the respondents irrespective of the
'reasons for leaving India', are aware of the bank account
deposit facilities; the respondents who went abroad for any
other purpose, except for higher studies, employment, and
business, are not much aware of the direct investment
facilities.
The mean scores value of the respondents shows
that 14.47 per cent, and 24.48 per cent of the respondents
are aware of such investment facilities accordingly as they
went for 'higher studies' and for 'business' respectively.
Those respondents who went abroad for 'employment', or for
'any other purposes' record 49.69 per cent and 11.35 per
cent respectively regarding the awareness of such
facilities. So it can be said with confidence that the NRIs
who went abroad for either 'employment or business' purposes
are more aware of the investment facilities than the other
categories of the respondents.
On studying the availing of the facilities
according to 'reasons for leaving India', It is observed
that the respondents who went abroad for 'employment'
purposes avail themselves well of such facilities. It alone
records the mean scores value of the respondents at 56.45
per cent. While the mean scores value of the respondents
records 17.57 per cent for the respondents who went abroad
for 'higher studies', it records 19.54 per cent and 6.44 per
cent for 'business' and 'any other purpose' respectively.
So, it can be concluded that the respondents who went abroad
for employment purpose lead in respect of the awareness and
availing of such investment facilities. However, an
insignificant relationship is shown by the computed value
(11.89) of chi-square at 9 degrees of freedom at 5 per cent
level.
An attempt is also made to find out whether the
duration of stay abroad has got any impact on the awareness
and availing of the facilitles. The analysis reveals that
the respondents are aware of and avail themselves of the
bank account facilities irrespective of their stay abroad.
Almost all of them are aware and avail themselves of such
facilities. However, in the case of direct investments the
reactions are mixed, and it is seen that 51.16 per cent and
50.39 per Cent of the respondents who stay abroad for a
period of '4 to 6 years' are aware of the '40 per cent
scheme' and '74 per cent scheme' respectively. Only 10.85
per cent and 11.63 per cent' of the respondents who stay
abroad for a period 'upto 3 yearst are aware of such
investment schemes under direct investment facilities.
The mean scores value of the respondents reveals
that 7.98 per cent and 50.92 per cent of the respondents who
stay abroad for the periods 'upto 3 years' and '4 to 6
years' respectively are aware of the facilities, whereas
40.11 per cent record for the category of '7 and above
years'. Studying the pattern of availing of such
facilities, it is found that the respondents who stay abroad
for longer duration (7 & more years) avail themselves of the
facilities more than the respondents who stay abroad for
shorter duration. It is evident from the table that while
the mean scores value of 64.75 per cent shows that those
respondents who stay abroad for longer duration avail
themselves well of the facilities, the mean scores value
records only 4.78 per cent for the respondents who stay
abroad for shorter duration. So one can conclude that the
'duration of stay abroad' has a direct influence on the
availing of such investment facilities. It is also proved
by the computed chi-square value (31.12) at 6 degrees of
freedom at 5 per cent level that there is a significant
relationship between the categories of duration of stay
abroad regarding the awareness and availing of such
facilities.
Awareness. and Availing of Incentives and Concessions
The following paragraphs deal with the awareness
of and the availing of the incentives and concessions by the
NRI investors.
Awareness and Availing of Incentives and Concessions According to Country of Residence, Religion, Age Group, and Level of Education
An attempt has been made in table VI.3 to study
the awareness and availing of the incentives and concessions
according to the country of residence. The table reveals
'that the majority of the respondents who belong to ' E l group
countries are very well aware of the various incentives and
concessions offered. The mean scores value of the
respondents of this category alone records 49.87 per Cent.
The mean scores value of the respondents for ' A A ' group
countries and ' E E ' group countries records 15.81 per cent
and 18.19 per cent respectively. It is found that the
respondents belonging to 'E' group countries dominate in
Anueoess aad Availing of Incentives and Coooe88io~s Aaarding to b t r g of Besidaace,
Variables
~ i g u r e s in parentheses denote totdl mean swres of percentages.
186
Ueligim, Age Gmup aad Leven of Imcatim
Country of Residence
Religion
Age Group
Level of Education
Source:
A
AA
E
EE
Hindu
Muslim
Christian
Sikh
Upto 35
36 to 45
46 & above
Upto Mntric
Cegrees & PC Degrees
Diploma B Tech. kgreos
~anputed fmm Survey
Total Mean
Awareness
A
16.79 (15.81)
17.86 (16.13)
56.86 (49.87)
20.29 (18.19)
57.07 (51.87)
18.71 (16.32)
16.43 (14.77)
19.57 (17.03)
16.79 (14.14)
76.29 (68.39)
18.71 (18.71)
14.5 (12.28)
56.14 (51.13)
41.14 (36.50)
Data
Swres
N A ----
0.79 ( 3.91)
2.29 (18.06)
3.43 (26.5 )
2.71 (22.96)
---- 1.79
( 8.8 )
5.43 (47.01)
0.29 ( 1.51)
1.71 (14.11)
---- 6.64
( 5 3 . 2 )
2.0 (13.84)
0.57 (17.47)
4.21 (35.81)
1.29 ( 8.74)
3.71 (26.88)
Availing
AV
13.5 (23.08)
13.86 (21.76)
33.57 (40.37)
11.79 (14.79)
39.5 (53.51)
9.71 (11.27)
12.93 (22.02)
10.57 (13.19)
9.93 (12.28)
45.86 (57.53)
16.93 ( 4.39)
---- 8
(10.84)
43 (63.94)
21.71 (25.21)
----
NAV
4.07 ( 7.27)
6.29 (12.25)
26.71 (47.71)
11.21 (25.63)
19.36 (26.06)
14.43 (38.12)
3.79 ( 6.27)
10.71 (22.41)
13.5 (37.53)
32.43 (51.16)
2.36 ( 4.17)
10.71 (26.18)
14.43 (19.07)
23.14 (47.61)
all the categories of the group of countries in respect of
the awareness of the incentives and concessions.
It is seen from the table that, on an aggregate,
the mean scores value for the respondents who are aware of
the incentives and concessions accounts for 111.79. The
respondents who are not aware of the incentives and
concessions account for 9.21. On the other hand, the
respondents who avail themselves of those incentives and
concessions and those who do not record 72.71 and 48.29
respectively. However, it is seen that two incentives viz.,
"balances on FCNR/NRER accounts are repatriable" and
"earnings on FCNRINRER accounts are exempted from income
tax" are familiar to all the respondents irrespective of
their country of residence. While all of the respondents
avail themselves of the 'higher interest rates', only a few
of them do not avail themselves of the special series of
cheque facility.
The table further aeveals that a majority of the
respondents are aware of the provision "risk of exchange
loss is protected in FCNR account", and an equal number of
respondents avail themselves of such incentives also. It
can be concluded that the respondents are aware of the
incentives,' irrespective of their country of residence.
Further, it is found that there is an insignificant
relationship between the 'country of residence' groups in
respect of the awareness of the incentives and concessions;
this is proved by the computed value of chi-square (5.44) at
9 degrees of freedom at 5 per cent level.
Also an attempt has been made to identify the
relationship between the religion and awareness of the
incentives and concessions. It is understood from the table
that there 1s not much difference between the religion
groups in respect of the awareness of the incentives such as
"balances on FCNRINRER accounts are repatriable", "interest
rates on FCNRJNRER accounts are higher", "local payments can
be easily debited to NRER account" and "special series of
cheque facility is available in NRER account". However, all
of the respondents do not avail themselves of such
incentives accordingly. It is seen that almost all 'Hindu'
respondents are aware of such incentives, whereas most of
the 'Muslim' respondents are aware of a part of the package
of incentives only, and almost all of the 'Christian' and
'Sikh' respondents are aware of such incentives.
The mean scores value of the 'Hindu' and 'Muslim'
respondents shows that 53.51 per cent and 11.27 per cent of
each category of the respondents avail themselves of those
incentives and concessions. While 22.02 per cent of the
'Christian" respondents avail themselves of those
incentives, only 13.19 per cent of the 'Sikh' respondents do
so. The figures of 6.27 per cent and 22.41 per cent of the
mean scores of the Christian and Sikh respondents
respectively show that they do not avail themselves of such
incentives and concessions. On the other hand, 26.06 per
cent and 38.12 per Cent (mean scores) of the Hindu and the
Muslim respondents respectively show that they do not avail
themselves of such incentives and concessions.
Though it seems to be much difference between the 'religion
groups' of the respondents in respect of awareness and
availing of such incentives and concessions the computed
value of chi-square (18.38) at 9 degrees of freedom at 5 per
cent level proves that there is an insignificant
relationship between the religion groups in respect of the
awareness and availing of the incentives and concessions.
An attempt has been made to correlate the
relationship between the awareness and availing of the
incentives and concessions and age groups. It is found from
the analysis that a majority of the respondents are aware of
such incentives and concessions. However, the 'middle age
group' respondents are well aware of the incentives and
concessions than their counterparts in the other age groups.
The mean scores value of the respondents shows that 14.14
per cent and 18.71 per cent of them who belong to the age
groups of 'upto 35' and '46 & above' respectively are aware
of such incentives.
The respondents who come in the age group category
of '36 to 45' record 68.39 per cent. On the other hand, the
mean scores value of the respondents shows that 12.28 per
cent, 57.53 per cent and 4.39 per cent of them who come
under different age groups, v l z . , lower, middle, and higher
respectively avail themselves of such incentives and
concessions. So, it can be concluded that there is a
significant difference of relationship between the different
age groups of the respondents in respect of the awareness
and availing of such incentives and concessions. It is also
proved by the computed value of chi-square (27.11) at 6
degrees of freedom at 5 per cent level.
To identify the effect of education on the
awareness and availing of the incentlves and concessions, an
attempt has been made, and the results are presented In the
sald table. It is observed from the table that there is
much difference between the educational groups of the
respondents in respect of the awareness and availing of the
incentives and concessions. The mean scores value of the
data shows only 12.28 per cent of the category of 'Upto
Matric'. The corresponding figures for the categories of
'Degree and PG Degree' and 'Diploma & Technical Degree' are
51.13 per cept and 36.59 per cent respectively. The mean
scores value shows that 35.81 per cent of the respondents
who have studied 'upto Matric' are not aware of the
incentives, whereas, the percentage of the respondents for
the category of 'Degree and PC Degree' is only 8.74. The
corresponding figure for the category 'Diploma & Technical
Degree' records 36.59 per cent only.
The mean scores value of the data also shows that
there is much difference between the educational groups in
the availing of such incentives. It is seen that 10.84 per
cent of the respondents who have studied 'Upto Matric' avail
themselves of such incentives, whereas 63.94 per cent and
25.22 per cent of the respondents who come under the
categories of 'Degree and PC Degree' and 'Diploma and
Technical Degree' respectively avail themselves of such
facilities. liowever, the respondents who do not avail
themselves of such incentives record for 26.18 per cent,
19.07 per cent and 47.61 per cent respectively.
So, it can be concluded that the level of
education of the respondents has a direct influence on
awareness and availing of the incentives and concessions.
However, the computed value (18.43) of chi-square at 6
degrees of freedom at 5 per cent level proves that there is
an insignificant relationship between the categories of
'different levels of education' in respect of the awareness
and availing of the incentives and concessions,
Awareness and Availing of Incentives and Concessions According to Occupation, Level of In-, Duration of Stay Abroad , and Reasons for Leaving India
To estimate the relationship between the
occupation groups of the respondents in respect of the
awareness and availing of the incentives and concessions, an
attempt has been made, and the results are shown in table
V1.I. It is understood from the analysis that there is not
much difference between the various occupation groups of the
respondents in respect of the awareness and availing of such
incentives and concessions. The mean scores value of the
respondents shows that 17.82 per cent of them who are
employed as 'Workers and Technicians' are aware of such
incentives. The mean scores value of 20.66 per cent shows
that the respondents who do 'Business and have been involved
in the business-related activities' are also aware of such
incentives.
The mean scores valdes of 33.4 per cent and 28.12
per cent show that the respondents who serve as either
'Supervisors or Executives' and as either 'Doctors or
Engineers' respectively are aware of such incentives.
However, the mean scores value of the respondents shows that
43 per cent and 30.48 per cent of them who belong to the
categories of 'Supervisors 8 Executives' and 'Doctors and
Engineers' respectively avail themselves of such incentives
and concessions. The mean scores value shows that 13.96 per
TMEE VI.4
A- sod Availing of Incentives rrnd Concea6ima According to Occupation, kvel of In-, m t i m of stay Abrmd,
and Reasms
Variables
Figures in parentheses denote t o t a l mean scores of percentages.
193
for Lea* 1rdi.e
occupation
Level of Income
Duration of Stay Abroad
Reasons for Leaving India
Source:
Workers & Technicians
Supervisors & Executives
Doctors & Engineers
Businessmen & Others
Upto Rs.30,000
Rs.30001to50,000
Rs.50001 & above
Upto 3 years
4 t o 6 years
7 & more years
For Higher Studies
For bployment
For Business
For any Other P u r p s e
Canputed fmm Survey
Total Mean
Awareness
A
19.93 (17.82)
37.43 (33.4 )
30.21 (28.12)
24.21 (20.66)
9.93 (8.24)
45.93 (39.72)
55.93 (52.04)
10.07 ( 8.37)
55.5 (48.19)
46.21 (43.44)
17 (15.96)
59.21 (54.25)
23.71 (19.62)
11.86 (10.17)
Data
Scores
N A ----
3.36 (26.02)
0.29 (1.83)
0.79 (4.65)
4.79 (38.93)
---- 4.5
(43)
2.5 (17.45)
2.21 (10.98)
---- 4.07
(41.31)
3.21 (18.43)
1.93 (11.7 )
---- 0.71
( 4 . 8 4 )
1.64 (10.73)
3.71 (22.29)
3.14 (33.57)
Availing ....................
AV
10.07 (13.96)
28.36 (43)
20.64 (30.48)
12.21 (12.55)
4.57 (6.09)
27.57 (34.32)
40.57 (59.59)
5.79 ( 8.54)
34.93 (44.31)
32 (46.91)
11.21 (18.06)
39.64 (55.35)
15.5 (18.41)
6.3fi ( 8 . 1 9 )
----
NAV
11.79 (24.89)
9.36 (12)
10.36 (17.81)
16.79 (38.16)
9.86 (32.55)
20.86 (32.02)
17.57 (28.29)
8.36 (30.68)
23.79 (36.8)
16.14 (25.38)
6.5 (14.34)
21.21 (34.22)
11.93 (21.13)
8.64 (23.17)
cent and 12.55 per cent of the respondents who serve as
'Workers or Technicians' and as 'Businessmen or others'
respectively also avail themselves of such incentives and
concessions. The respondents i.n higher professions
(Supervisors, Executives, Doc'tors, and Engineers) are well
aware, and avail themselves of the incentives and
concessions more than the other occupation categories of the
respondents.
So, it can be concluded that there is some
difference between the different occupation categories of
the respondents in respect of the awareness and availing of
the incentives and concessions. However, an insignificant
relationship is established by the computed chi-square value
(18.25) at 9 degrees of freedom at 5 per cent level.
As it is found that the level of income of the
respondents has a direct influence on the awareness and
availing of the investment facilities, an attempt has been
made to identify the relationship between the different
levels of income of the respondents and the awareness and
availing of the incentives and concessions. It can be seen
from the table that the level of income of the respondents
has a direct influence on the awareness of the various
incentives and concessions. It is evident that the mean
scores value for the data shows that 8.24 per cent and 39.72
per cent of the respondents who come under the income groups
'upto Rs.30,000' and 'Rs.30.001 to 50,000' respectively are
aware of the incentives and concessions; the corresponding
figure for the category of 'Rs.50,001 8 above' is 52.04 per
cent. On the other hand, the mean scores value of the data
shows that 43 per cent and 17.45 per cent of the respondents
who come under the categories of 'upto Rs.30,000' and
'Rs.30,001 to 50,000' are not aware of the incentives and
concessions; the corresponding figure for the category of
'Rs.50,001 and above' is only 10.98 per cent.
On studying the awareness pattern in relation to
different levels of income, ~t is found that the higher
income group respondents benefit more than the other
categories. The mean scores value of the respondents shows
that 6.09 per cent, 34.32 per cent and 59.59 per cent of
them record for the categories in the order of lower, middle
and higher level of income groups respectively.
The respondents who do not avail themselves of the
incentives and concessions record for 32.55 per cent, 32.02
per cent and 28.29 per cent respectively. So, it can be
concluded that the level of income of the respondents has a
direct influence on the awareness and the availing of the
incentives and concessions. And it is witnessed by the
computed,value of chi-square (20.32) at 6 degrees of freedom
at 5 per cent level of significance that there is a
significant relationship between the various categories Of
income levels of the respondents in respect of the awareness
and availing of the incentives and concessions.
Verification of Bypothesis
H.1. NRIs' awareness and availing of incentives and
concessions depend significantly on their education,
occupation, and level of income.
Part (a) Relationship between 'Awareness and Availing of
Incentives' and Education.
Null Hypothesis: There is no relationship between awareness,
and availing of incentives and education.
TABLE VI .5
Chi-Square Distribution for Awareness and Availing of Incentives According to Education
Table Value 18.5 Calculated Value 18.43
Level of Education
Upto Matric
Degree B PC Degree
Diploma &Technical Degree
Awareness
A
14.5
56.14
41.14
Availing -------------------
NA
4.21
1.29
3.71
------------------- AV --
8
43
21.71
NAV
10.71 --
14.43 --
23.14
--
The computed value of chi-square under the said
null hypothesis is 18.43, and it is less than the table
value of chi-square at 5 per cent level of significance.
Hence, the null hypothesis is accepted. Therefore, the
conclusion is that there is no association or relationship
between awareness and availing of incentives, and education.
Par (b) Relationship between Awareness, and Availing of
Incentives and Occupation.
Null Hypothesis: There is no relationship between awareness,
and avalling of incentives and occupation.
TABLE VI .6
Chi-Square Distribution for Awareness and Availing of Incentives According to Occupation
Table Value 23.6 Calculated Value 18.25
Occupation
Workers & Technicians
Supervisors % Executives
Doctors % Engineers
~usinessme'n 8 Others
Awareness
A
19.93
37.43
30.21
24.21
Availing -------------------
NA
3.36
0.29
0.79
4.79
------------------- AV --
10.07
--
28.36
20.64
12.21
NAV
11.79
9.36
-- 10.36
-- 16.79
--
The computed value of chi-square for the said
null-hypothesis is 18.25, and it is found less than the
table value of chi-square at 5 per cent level of
significance. So the null hypothesis is statistically
accepted. Hence it can be concluded that there is no
association or relationship between awareness and availing
of incentives, and occupation.
Part (c) Relationship between Awareness, and Availing of
Incentives and Income
Null Hypothesis: There is no relationship between awareness
and availing of incentives, and income.
TABLE VI .7
Chi-Square Distribution for Awareness and Availing of Incentives According to Income
Table Value 18.5 Calculated Value 20.32
Level of Income
Upto Rs.30,000
Rs.30,001 - 50,000
Rs.50,001 & above
Awareness
A --
9.93
45.93
55.93
Availing ------------------- NA
4.5
2.5
2.21
------------------- AV -- 4.57
27.57
40.57
NAV
9.86 --
20.86 --
17.57 --
The computed value of chi-square for the null-
hypothesis is 20.32, and it is found statistically higher
than the table value of chi-;quare at 5 per cent level of
significance. Hence, the null-hypothesis is rejected, and
an alternative hypothesis is framed.
Alternative Hypothesis: There is relationship between
awareness, and availing of
incentives and income.
Therefore, the conclusion is that there is a
significant association or relationship between awareness
and availing of incentives, and income.
H.2. NRIs are aware of and avail themselves of the
incentives and concessions irrespective of their
country of residence.
Relationship between Awareness and Availing of
Incentives, and Country of Residence
Null Hypothesis: There is no relationship between Awareness
and Availing of Incentives, and Country of
Residence.
The computed value of chi-square under the said
null-hypothesis is 5.44, and it is less than the table value
of chi-square at 5 per cent level of significance. Hence
the null hypothesis is accepted. Therefore the conclusion
TABLE VI .a
Chi-Square Distribution for Awareness and Availing of Incentives According to Country of Residence
Table Value 23.6 Calculated Value 5.44
Country of Residence
A
A A
E
EE
is that there is no association or relationship between
awareness and availing of incentives, and country of
residence.
It is found that there is not much difference
between different categories of 'reasons for leaving India'
in respect of the awareness and availing of facilities.
Still an attempt has been made to understand the
relationship between 'the reasons for leaving India' and
'awareness and availing of incentives and concessions'. It
is understood that there is much difference between the
respondents who went abroad for 'employment purpose' and for
'any other purposes'.
Awareness
A
16.79
17.86
56.86
20.29
Availing ------------------- NA
0.79
2.29
3.43
2.71
------------------- AV -- 13.5 --
13.86
33.57
11.79
NAV
4.07
6.29 --
26.71 --
11.21 --
It is evident that the mean scores value of the
data shows that 54.25 per cent and 10.17 per cent of the
respondents who went abroad for 'employment purposes' and
for 'any other purposes' respectively are aware of the
various incentives and concessions. However the mean scores
value shows that the respondents are almost equally
distributed in the categories of the respondents who went
abroad for 'higher studies' and those for 'business
purposes'. The mean scores values are 15.96 per cent and
19.62 per cent respectively for the said categories. The
mean scores values of the respondents who are unaware of
those incentives and concessions for the categories 'higher
studies', 'employment', 'business' and for 'any other
purposes' record 4.84 per cent, 10.73 per cent, 22.29 per
cent, and 33.57 per cent respectively. It is understood
that there is much difference between the categories of 'any
other purpose' and 'higher studies' than between the
remaining categories of the respondents in respect of the
awareness of such incentives and concessions.
On studying the pattern of the availing of
incentives and concessions, it is understood that the
respondents who went abroad for 'employment purpose'
benefitted more than the other categories. This category
alone records 55.35 per cent mean scores value. The
respondents who went abroad for 'higher studies' and for
'business' purposes have benefited almost equally. However,
the mean scores value shows that only 8.19 per cent of the
respondents who went abroad for 'any other purposes' availed
themselves of such incentives. On the other hand, the
respondents who went abroad for 'business' and for 'any
other purpose' are equally distributed in the availing of
such incentives.
So it can be concluded that there is not much
difference between the said categories in respect of the
awareness and availing of the incentives and concessions.
However, the individual cases differ from one another in
several respects. It is also evident from the computed
value (10.39) of chi-square at 9 degrees of freedom at 5 per
cent level of significance that there is an insignificant
relationship between the various categories of 'reasons for
leaving India' in respect of the awareness and availing of
the incentives and concessions.
An attempt has been made to bring out the
relationship between different durations of stay abroad, and
awareness and availing of incentives and concessions. It is
found that there is not much difference between the two
categories of "longer duration, viz., '4 to 6 years', and
'7 and mare years', of stay abroad" in respect of the
awareness and availing of incentives and concessions. It is
evident from the mean scores values of the data that 48.19
per cent and 43.44 per cent of them who stay abroad for ' 4
to 6 years' and ' 7 & more years' respectively are aware of
such incentives and concessions; the corresponding figure
for the category 'upto 3 years' records only 8.37 per cent.
The mean scores values of the respondents who are
not aware of such incentives and concessions record 41.31
per cent, 1 8 . 4 3 per cent and 11.7 per cent for the
categories of 'upto 3 years', ' 4 to 6 years' and '7 & more
years' respectively.
On studying the pattern of the availing of such
incentives and concessions, it is found that the,respondents
for the two categories of 'longer duration' are almost
equally benefited of such incentives and concessions
irrespective of their duration of stay abroad. The mean
scores value for the said categories respectively are 8.54
per cent, 44.31 per cent and 46.91 per cent. ilowever, the
categories of respondents who do not avail themselves of
such incentives and concessions differ from one another. It
is seen from the table that the mean scores values for the
categories of 'upto 3 years' and ' 4 to 6 years' are 30.68
per cent and 36.8 per cent respectively. On the otherhand,
the mean scores value for the category of '7 & more years'
is only 25138 per cent. It means that the 'duration of stay
abroad' has a direct influence on the awareness and availing
of such incentives and concessions.
However, it is found from the computed value
(13.22) Of chi-square (at 6 degrees of freedom at 5 per cent
level of significance) that there is an insignificant
relationship between the different categories of 'duration
of stay abroad' of the respondents in respect of the
awareness and availing of such incentives and concessions.