India grants dual citizenship to overseas Indians

New Delhi: In a decision of far-reaching significance for Indians settled abroad, the Congress-led United Progressive Alliance (UPA) today redeemed its pledge to confer dual citizenship on them.

A meeting of the Union Cabinet, chaired by Prime Minister Manmohan Singh, also decided to issue 'smart cards' to registered Overseas Citizens of India, Finance Minister P Chidambaram told media persons.

The cabinet gave its approval for amendment of relevant acts to provide for giving benefit to all people of India origin, and their children and grandchildren, who migrated from India to countries other than Pakistan and Bangladesh after January 26, 1950 or were eligible to become Indian citizen on this date or belonged to the territories, which became part of India after August 15, 1947 to acquire Overseas Citizenship of India as long as their home countries allow dual citizenship in some form or the other.

It was decided to amend Citizenship Act, 1955, and also Allocation of Business Rules and to allow Ministry of Overseas Indian Affairs to issue notifications under Section 7B (1) of the Citizenship Act, 1955.

It may be recalled that Prime Minister Manmohan Singh gave assurance to confer dual citizenship to Overseas Indians at the last Pravasi Bharatiya Divas in Mumbai.

With a view to stimulating the flow of capital, technology and personnel from India to Serbia and Montenegro and vice-versa, the cabinet today gave its approval for signing of a Convention with the Government of Serbia and Montenegro for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital.

The cabinet also decided to amend Para 5 of Article 23 in the Convention between India and Portugal for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

India has so far signed and notified such bilateral treaties for avoidance of double taxation with 69 other countries.

Of course, Overseas Indian Citizenship isn't really dual nationality. There are a number of restrictions:

-Overseas Indians don't get two passports - they basically get a stamp in their US (or whatever) passport that makes them overseas Indians.
-They can't vote
-Can't stand for public office
-Can't enter public service (ie, work for the government).

These are unlikely to matter to most people who will apply for this, because AFAIK, this is still enough to enter India without a visa, live in India indefinitely (not sure about this), and own property and business with the same rights as an Indian citizen. (An interesting question is whether some of the Rights in the Indian Constitution which apply only to citizens will be available to Overseas Citizens..my guess would be no..)

Basically, the scheme doesn't allow foreign citizens to become Indian citizens as such - it creates a new class of "overseas citizens" who have some of the same rights as citizens.

However, unless the current government has modified the Overseas Citizenship proposal (which originated under the previous government), there is a more serious flaw, which is that only (Indian origin) citizens of Western countries were eligible to apply. So, for example, if you were of Indian origin, and you had a South African passport, you couldn't apply for this. (Not sure if this is still true, but it was, when the scheme was originally announced two years ago).

I think the same too. Especially because of the clause stating only citizens of Indian origin in countries which allow dual-citizenship within that country, are allowed to hold a dual citizenship in India. AFAIK, only the US and a handful of other western nations allow this.

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