ABSTRACT
Foreign investments figure prominently in most countries' development narratives. Investments by Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) are among the most visible aspects of diaspora engagement by the Indian government. Although our actual knowledge about the extent, determinants, and impacts of such flows is scarce, diaspora investments are seen as an untapped source of capital. This chapter sheds light on several aspects of Indian diaspora investments from the angle of public policies, investment flows, and their determinants. It discusses critical definitions of Indian diaspora investors, and introduces India's specific diaspora investment policies and related institutions. Subsequently, it provides an overview of the development of investment flows, such as Foreign Direct Investment (FDI), foreign portfolio investment (FPI), NRI accounts and diaspora bonds. Lastly, the chapter discusses research on the impact of NRI investments.
