Here is some food for thought, In India, only 5.5% of the population holds a passport; even as Indian start-ups and other businesses are leaving a mark on the global arena when it comes to holding passports, we show up pretty poorly in this regard.
India is a country of roughly 132 crores, and 5.5% accounts for only 6.8 crores of the entire population of India that have a valid passport to their name.
These figures are astonishing because India has been showing consistently as one of the favourite destinations to invest in; the Indian start-up ecosystem has emerged strong and made a mark in the global arena to attract investors.
Yet, the number of passport holders is almost negligible. In the earlier years, the Indian masses did not pay much heed to have passports to their names; it was primarily a privilege associated with the rich or the privileged gentry.
But today, times have changed and going by the Ministry of External Affairs (MEA) data, the norms of getting a passport have become much easier with only a copy of an Aadhar card or Voters ID and a passport can be issued. Also, the number of passports Seva Kendra’s has increased.
Yet, this action has no punch; let us look at some more interesting facts.
Want to do Business with Foreign Companies? Where’s the Passport?
To explain this complexity better, here is an example –
Let us assume one has an online business and has an international client who wants to avail of the company’s services. When it comes to making a payment, how does he make one?
He makes it through a payment gateway; for clarity, let us assume the payment gateway is Coin Switch – now, for Coin Switch to authorize these transactions – it will ask for specific credentials.
The specific credential and the only credential that Coin Switch accepts is a valid passport of the individual who runs the business.
The business is registered per the terms and conditions of Govt of India & Corporate Affairs applicable to the industry and to legitimize its business operations. The company is registered and has a taxation certificate and GST. The details of the company can be sought with a Google search.
The above is in regards to the company; now let us take the example of the individual who owns and runs the business – Aadhar card, Voters Id, and Pan card are the Proof of Identity that the individual holds and these documents as issued by the Govt of India and are accepted as valid proofs of the individual as authorized by the Govt of India.
So where is the problem, one might ask?
The problem is that none of these documents is accepted by (example) Coin Switch; since the individual does not hold a passport, he/their business is not taken or authorized by Coin Switch, and hence the payment gateway cannot be used for any business transaction.
Aadhaar Card, Pan Card Or Voters ID
The absurd thing about this whole picture is that all the three mentioned above – Aadhaar Card, Pan Card and Voters ID are valid proofs of identity but not enough or accepted in the international arena.
Hence, one is left questioning – is the same true for other nationals of other countries such as the United States, United Kingdom, Australia, New Zealand, and so many more?
India Inc. as Strong as Ever
India Inc, especially when it comes to the start-up ecosystem, has been on a high; it has managed to attract the attention of all major international venture capital firms. The start-up ecosystem is robust enough in the country so as to attract regular funding from these firms who are looking to put their resources on bets that have strong growth potential and hence good returns.
When it comes to the Indian Govt, the Modi administration has secured some significant scores in the international bilateral arena. India is making its mark in the world, and the world is sitting up and taking notice of the same. Gone are the days when India was just a poor nation with a humongous population. Today while we still struggle in the population control area, it is also perhaps our strength.
Hence, the absurdity of why a passport is still the only document that may be taken as valid proof by companies.
The Strongest Passports in the World – Henley Passport Index
India is ranked 87th on the list of the most powerful passports in the world.
Before the Covid – 19 pandemic and the restrictions on travel imposed due to the Russian – Ukraine war, the following is the list of the most powerful passports in the world, 2022
1. Japan (193 destinations)
2. Singapore, South Korea (192 destinations)
3. Germany, Spain (190 destinations)
4. Finland, Italy, Luxembourg (189 destinations)
5. Austria, Denmark, Netherlands, Sweden (188 destinations)
6. Ireland, Portugal, France, United Kingdom (187 destinations)
7. Belgium, New Zealand, Norway, Switzerland, United States (186 destinations)
8. Australia, Canada, Czech Republic, Greece, Malta (185 destinations)
9. Hungary (183 destinations)
10. Lithuania, Poland, Slovakia (182 destinations)
After Covid -19 and Russia – Ukraine conflict, the list of the most powerful passports is as below –
1. United Arab Emirates (174 destinations)
2. Germany, Sweden, Finland, Luxembourg, Spain, France, Italy, Netherlands, Austria, Switzerland, and South Korea (170 destinations)
3. Denmark, Norway, Belgium, Portugal, Poland, Japan, Ireland, the United States of America, and New Zealand (169 destinations)
4. Malta, Czech Republic, Greece, Hungary, United Kingdom, Australia (16 destinations)
5. Singapore, Lithuania, Slovakia, Canada (167 destinations)
6. Estonia, Latvia, Slovenia (166 destinations)
7. Liechtenstein (165 destinations)
8. Cyprus, Iceland, Croatia, Romania, Bulgaria (164 destinations)
9. Malaysia (162 destinations)
10. Brazil, Monaco (160 destinations)
What is the reason for 5.5% population holding passports in India?
Yes, we can give Covid -19 pandemic this round as to the number one reason why passport seeking may be on the lower side since travel restrictions and precautions were the central aspects.
However, the 5.5% passport holders figures have been circulated much before the pandemic raised its ugly head.
Therefore, why does such a small percentage of the population in India hold passports?
One of the main reasons is probably because international travel is just an aspiration for most Indian, and for many, it just remains that – an aspiration.
Perhaps, one thinks that one will apply for a passport only when one is closer to the dream of international travel.
At the same point in time, statistics also show that the average Indian is now venturing out more than what was the scene a few years back. Today international travel and international destinations do figure on the bucket list of most young Indians.
Leisure travel and destination weddings are popular, another contributor is the OTT channels and international streaming platforms that are watched by young adults, and the idea of travel abroad is not that big a deal anymore.
Conclusion: India still has a long way to go when it comes to the credibility of Indian citizens. As the ordinary citizens go, and not taking into account the ‘crème de la crème’ of the population, there is yet room for a mark to be made.
The start, however, would be welcome if the companies were to accept and honour the documents of proof of identity as authorized by the Govt of India and ease the way to do business rather than just look and take a passport as the only acceptable document.
edited and proofread by nikita sharma
