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Indian diaspora has scaled new heights in the West. Describe its economic and political benefits for India

Q10. Indian diaspora has scaled new heights in the West. Describe its economic and political benefits for India. (10m)


According to the World Migration Report, 2022, India has the largest diaspora in the world. This diaspora acts as a vital strategic instrument and channel of communication to further India’s foreign policy goals and promote soft power of the country.


Indian diaspora scaling new heights

  • Tech CEOs, driving silicon valley

E.g. Sundar Pichai (CEO of Alphabet inc and its subsidiary Google)

  • Political heads

E.g. Kamala Harris (Vice President of USA), Rishi Sunak (PM of UK)

  • Investors, CEOs

E.g. Vinod Khosla, Indra nooyi

  • Heading global institutions

E.g Ajay Banga, World Bank


Economic benefits

  1. Remittances: The Indian diaspora in the West sends substantial remittances. These remittances provide a crucial source of foreign exchange.
    1. E.g. In 2020, India received over $83 billion in remittances, making it the highest recipient of remittances globally.
  2. Indian expatriates in the West often invest in Indian businesses, startups, and real estate. 
    1. E.g. Prominent Indian-origin entrepreneurs in Silicon Valley like Vinod Khosla have played pivotal roles in funding and mentoring Indian startups.
  3. Proliferation of Indian culture and  values  across the globe drives the tourism industry. 
    1. E.g. Naatu-Naatu, the oscar winning song from India,, Bollywood, Yoga.
  4. Indian diaspora is expected to guide the policy-makers in the field of the Artificial Intelligence-driven industry which will create high-value jobs. 
  5. They facilitate the flow of commercial & business ideas and technologies into India.

Political benefits

  1. They lobby for favourable terms regarding India’s interests.

E.g. To facilitate INDO-US Civil Nuclear Deal,

  • E.g: The U.S.-India Political Action Committee (USINPAC) and the Indian American Community Foundation (IACF) are influential advocacy groups that work to strengthen U.S.-India relations.
  1. Many Indians are serving as high officials in different countries. They may support Indian interests on global issues like Climate Change, Trade, Security, Terrorism etc.

E.g. Indian origin leaders like Rishi Sunak,Kamla Harris etc. 

  1. They affect popular attitudes and policies of the host countries.
  2. Indian expatriates in the West actively promote Indian culture, traditions, and arts, enhancing India’s soft power and global reputation.
  3. Can help resolve long standing bilateral issues.

E.g. To ease out H1B visa norms, IND-UK FTA


In summary, the Indian diaspora in the West plays a pivotal role in advancing India’s economic and political interests. Their contributions have a significant impact on India’s growth, development, and standing on the global stage. 




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