Inaugurating the 12th Pravasi Bharatiya Divas here on Wednesday, the Prime Minister said : 'On this occasion, I would also like to record my appreciation for the work of the Ministry of External Affairs and the Ministry of Overseas Indian Affairs, as also the Government of the Kingdom of Saudi Arabia, for successfully addressing the challenges that more than a million Indian workers faced following changes in Saudi Arabia’s labour policies. As always, our objective is to support our emigrant communities and I hope this year’s Pravasi Bharatiya Diwas will again provide an opportunity to discuss how we can forge a more productive partnership.'

For the first time India signed an agreement with Saudi Arabia on labour cooperation for domestic service workers' recruitment on January 2, this year. The need for such an agreement stemmed from Saudi Arabia implementing the Nitaqat law to provide more job opportunities to its local population and restrict so-called 'illegal migration.' The agreement was signed between Minister for Overseas Indian Affairs Vayalar Ravi and the visiting Minister for Labour of Kingdom of Saudi Arabia Adel Bin Mohammed Fakeih.

The agreement aims to protect the right of both the employers and domestic service workers and regulate the contractual relation between them. It endeavors to control recruitment costs in both countries. It ensures recruitment of domestic sector workers directly or through registered recruitment agencies.

At present there are about 2.8 million Indian residents in Saudi Arabia. From the beginning of 2013 when the Nitaqat law was implemented about 130,000 Indian workers returned to India. But a good number of Indian workers went to Saudi Arabia and as such the Arab Kingdom now hosts about 2.8 million Indians. Approximately 25 to 30% of Indian residents would be covered under 'domestic workers' as per Saudi law.Over the past two decades, number of Indians in Saudi Arabia has grown from 450,000 to 2.8 million.

The Prime Minister reminded the Indian expatriates that not only their size as the world's second largest but their 'achievements' have given them 'a significant profile.'

India has recently launched Mahatma Gandhi Pravasi Suraksha Yojana to provide social security to Indian workers abroad. The Pravasi Bharatiya Kendra in Delhi is slated to be completed this year. A new scheme will be launched to assist state governments for setting up Pravasi Bharatiya Bhawans, the Prime Minister informed.

The Prime Minister sought to allay the fears of probable Overseas Indian investors about the country's economy. 'There is a perception in some quarters outside India that the country is losing its momentum of the past decade. This is also amplified by the political contestations here in India, which are inevitably louder in the election season that is now on the horizon. I wish to assure you that there is no reason to despair about our present or worry about our future. Indeed, as I have said earlier, we are heading into better times ahead and I would urge you to remain engaged in the future of this country with confidence and optimism,' he said.

The Prime Minister elaborated the strength of Indian democracy, maintaining steady economic growth rate despite global slowdown, expansion of knowledge network, moving towards inclusive growth and transparency in government and public life.