INDIAN DIASPORA

1. Background

• People of Indian origin began to migrate overseas in significant numbers only in the 19th century driven by the economic compulsions generated by colonialism. 
• In a uniquely diverse pattern that has not been replicated by any other Diaspora, except perhaps the Chinese, Indians spread initially to the countries of Africa, Southeast Asia, Fiji and the Caribbean. 
• This wave was mainly in response to the enormous demand for cheap labour that arose immediately after the British abolished slavery in 1833-1834. 
• It was succeeded in the second half of the 20th century, by a steady outflow of some of India's best professionals to the developed countries of the West, and of India's skilled and semi-skilled labour in the wake of the oil boom in West Asia and the Gulf in the 1970s.
• Today the Indian Diaspora numbers over 20 million, reflecting the full multiplicity and variety of the rich social, ethnic, religious and cultural tapestry of the land of its origin. 
• These broad strokes, therefore, do not do adequate justice to the tremendous complexity of the phenomenon of Indian overseas migration, which is, therefore, sought to be addressed in detail in the Report itself.
• Since India achieved Independence, overseas Indians have been returning to seek their roots and explore new avenues and sectors for mutually beneficial interaction, from investment, to transfer of skills and technology, to outright philanthropy and charitable works. 
• This trend has become more marked in the last decade as the Indian economy has opened up, giving rise to a new range of opportunities for emerging generations.

2. Role played by diaspora across the globe

• Dynamics of Diaspora

• Rethinking Development Vis-àvis Globalization and Diaspora, Emergence of Knowledge Economy and Human Mobility  Financial Capital Trans-border Flow of capital, Diaspora Investment, Remittance and Development back home  

• Human Capital 

• Diaspora Knowledge Network in the emerging Economy, Collaboration in the areas of Skill Transfer, Knowledge, Training and Country specific Experiences  

• Social Development

• Diaspora Contribution to Education, Health, Diaspora Philanthropy, Disaster Management, Gender and Cultural Development  

• Diaspora and International Relations 

• Diaspora promoting International Relations, Development lobby/ Pressure groups, soft power/ cultural diplomacy.

3. Significance of diaspora across the globe

• Overseas communities constitute a significant resource for the development of the countries of origin. 
• It serves as an important 'bridge' to access knowledge, expertise, resources and markets for the development of the country of origin with the rest of the world.
• The Indian diaspora is an important part of India’s “soft diplomacy”, which sometimes proves to be more effective in creating new paths for the country of origin. For example, the Indian diaspora played a critical role in the fructification of the Indo-US Nuclear deal.  
• They have also contributed to the growth and development of the country of their residence. 
• For example, Silicon Valley represents the success of Indians. 
• 4 out of 10 startups in the region are Indian. About one-third of the engineers in Silicon Valley are of Indian descent, while 7 per cent of the Valley’s high-tech firms are led by Indian CEOs. The Indian Diaspora has played an important role in the field of Science & Technology. Indian emigration thus increasingly consisted, among others, of highly qualified scientists, engineers and other professionals, also termed the Brain Drain. 
• Of late, it has emerged as a significant source of trade and investment in India. 
• Apart from the above, it is the source of large inflows of remittances, which has been helping balance the current account. According to the World Bank, the Indian diaspora is going to be the largest earner of remittances in the world in the next few years. 

4. Role of Indian Diaspora towards Atma Nirbharta

• Financial Contribution: Indian diaspora is a strong community, which is approximately 18 million strong. They are the topmost contributors to the home economy, measured in terms of global remittances. Indians contribute 13% of global remittances. The remittance sent by Indians back to India amount to approximately 3.2% of the Indian GDP.
• Indian diaspora’s contribution to the world: Indian diaspora in the world can be divided into two major categories (apart from others who are in myriad occupations and almost in every country in the world):
• Technological graduates: They are the engineering and management graduates, who are in high-value jobs majorly located in, but not limited to, western countries like the US and Europe.
• Manual Labour: These comprise the comparatively lower-skilled population, which has been hired for manual labour, majorly in the Arab or West Asian countries.
• The contribution of both categories to the development of India is immense and they have both contributed to making India the largest recipient of foreign remittances globally.
• Contribution to the place of residence: Similarly, their contribution to the country of residence is also noteworthy. E.g., the Indian diaspora in the UK is almost 1.8% of the total population of the UK, but it contributes almost 6% of the total GDP of the UK.
• Part of Global supply chains: Far from being isolated from the world, Self-reliant India envisions India as a contributor to the world and a part of global supply chains. COVID crisis has shown the perils of being dependent upon foreign sources for raw materials and intermediate products. Thus, the direction of Self-reliance is towards creating alternate supply chains. E.g. due to the origin of the COVID crisis in Wuhan, the Chinese companies had to be locked down and the global supply of raw materials was interrupted. This has prompted initiatives like Self-reliant India and the Japan-led Supply Chain Resilience Initiative.
• Changing perceptions: After the 1991 LPG reforms, the outflow of the Indian diaspora has contributed a lot to changing the perception of the world towards Indian employees. The leadership position of many Indians in the tech companies of Silicon Valley has strengthened the image of India as a technology powerhouse and a source of quality human resources. Indian executives have often been credited with being the harbingers of innovation as a part of the top technology companies around the world. E.g., executives like Sundar Pichai, Satya Nadella etc. have reached the highest echelons in their respective sectors.
• Focus on ‘Make in India’: Indians are counted amongst the most affluent communities around the world. This source of capital can be tapped by encouraging them to invest in India. Also, by taking advantage of their corporate leadership positions in the Silicon Valley and other technological sectors, the Indian diaspora can be facilitated to contribute to the Indian development story by investing in Greenfield and brownfield projects, as well as, portfolio investments in India.
• Knowledge Economy: Experts indicate that in the upcoming future, it would be the Artificial intelligence-driven industry which will create high-value jobs. In such a scenario, the investment in engineering education in the country is expected to pay off. Similarly, the Indian diaspora is expected to guide the policy-makers in the required direction to extract maximum benefit out of the changing global scenario. E.g., the Vaibhav conference (see inset) of Indian scientists abroad has yielded many ideas for the benefit of India.
• India’s inherent strengths: Indians are also well integrated into the healthcare sector around the world in the form of doctors and healthcare workers. This can be combined with the inherent strength of India in the pharmaceutical sector to create an efficient partnership. E.g. Serum Institute of India is manufacturing the Oxford-Astra Zenca vaccine, which is a symbiotic relationship between the UK’s research and development industry and the Indian pharma sector. Similarly, the engine of Light Combat Aircraft Tejas will be co-developed by Rolls Royce in India, giving it much-needed strength and global visibility.

5. The opportunity that diaspora brings.

• They serve as an important ‘bridge’ to access knowledge, expertise, resources and markets for the development of the country of origin with the rest of the world.
• Indian Diaspora is an important part of India’s “soft diplomacy” or “diaspora diplomacy”. For example, the Indian Diaspora played a critical role in the fructification of the Indo-US Nuclear deal.
• They have also contributed to the growth and development of the country of their residence. For example, Silicon Valley represents the success of Indians. The Indian Diaspora has played an important role in the field of Science & Technology.
• Trans-national entrepreneurship: They are a significant source of trade and investment in India.
• Source of large inflows of remittances, which has been helping balance the current account. It further aids in socio-economic development and poverty reduction. According to the World Bank, the Indian Diaspora is the largest earner of remittances in the world currently.
• Diffusion of experience and exposure: They spread the Indian Culture and traditions abroad benefitting India in general. Example: Yoga, Ayurveda, Indian Cuisine etc.
• NRI also finance educational institutions or businesses, which again adds to the economy’s sectors. Reports suggest that these NRI are a major source of Foreign Direct Investment, Market Development (Outsourcing) and technology transfer, that boost the assets of the fiscal system, every day.

5. Major issues and challenges associated with the Indian Diaspora

• Dual Citizenship: The majority of Indian diaspora want to retain their Indian citizenship along with the citizenship of the country of their residence.
• Consular and other issues: The commonest grievance of the Diaspora is the ill-treatment, harassment and the demands for illegal gratification it encounters at the hands of our customs and immigration officials at the points of entry.
• Culture: Indian Diaspora is deeply conscious of their rich cultural heritage. They are aware that they are the inheritors of the traditions of the world’s oldest continuous civilization. Being part of such a rich legacy they are naturally keen to maintain their cultural identity.
• Threat to their employment (Nitaqat Law): It aims to replace a large section of overseas workers with locals in Saudi Arabia. Because of this, overseas workers from Kerala, TN etc. were affected.
• Threat to their security: Given the recent cases of violence in the Middle East, there has emerged a new threat to the very security of overseas workers in the region. For example, the recent kidnapping of Indian workers by an IS group. 

6. Steps were taken by the Indian Government in aid of the Diaspora

• Pravasi Bhartiya Diwas –a day observed on 9 January by the Republic of India to mark the contribution of the overseas Indian community towards the development of India. The day commemorates the return of Mahatma Gandhi from South Africa to Mumbai
• Ease of Doing Business: India has consistently ranked in the top improving countries for the last three years, with Indian rank improving from 130 to 66 in 2020. This creates a favourable environment for businesses to invest in India and also allows the diaspora to confidently create an outreach strategy, in their areas of influence.
• Merger of Person of Indian Origin (PIO) and Overseas Citizen of India (OCI) status: The merger of PIO and OCI has been a long-standing demand of the Indian community, which has been accepted by the government. Along with that, the Indian government has accorded many advantages to the OCIs by including them in the definition of Indian management control, in the context of sensitive industries. This will create investment opportunities for the diaspora.
• Launch of informative projects: Indian government is in the process of launching awareness generation portals like the Global Pravasi Rishta portal, to provide an instrument for connecting with the diaspora. It will be a dynamic communication platform to connect the diaspora with the Ministry of foreign affairs, Indian missions and the Indian diaspora abroad.

7. Conclusion

• The knowledge, wisdom and links of the Indian diaspora, if India wants to achieve the target of becoming a $5 trillion economy, as outlined by the Hon’ble Prime Minister.