Context: The 18th Pravasi Bharatiya Diwas was celebrated on January 9, 2025. India boasts the largest diaspora globally contributing significantly to their host and home countries. India needs to formulate a dynamic and comprehensive migration policy, aligned with national priorities.
Relevance of the Topic: Mains: India’s Diaspora: Significance and Challenges.
Indian Diaspora
- According to the UN World Migration Report 2024, India boasts the largest diaspora globally, nearly 18 million.
- According to India’s Ministry of Foreign Affairs, as of May 2024, the total number of overseas Indians worldwide is approximately 35.42 million, which includes about 15.85 million non-resident Indians (NRIs) and nearly 19.57 million individuals of Indian origin (PIOs).
- The United States is home to the largest Indian population in the world (totalling 5.4 million people), followed by the United Arab Emirates (UAE).
- Indian immigrants have made significant contributions across various sectors, with over 20 CEOs of Indian origin leading Fortune 500 companies as of 2024.
Significance of the Indian Diaspora
1. Political significance:
- Pressure group: Diasporas often mobilise networks and resources to support a certain cause in either their homeland or their host countries. E.g., lobbying for favorable visa policies and the U.S.-India Nuclear Deal.
- Political position: Many people of Indian origin hold top political positions in foreign countries. E.g., Kamala Harris- USA Vice President.
2. Economic significance:
- Remittance: India received remittance of $129 billion in 2024, the highest in the world.
- Tackle disguised unemployment: Migration of semi-skilled labour has brought down the disguised unemployment.
- Rich source of FDI: FDI from diaspora is strongly influenced by diaspora’s affinity for their culture in the homeland.
- Transfer of tech and innovation: Indian IT sector is an example of a brain gain effect. The diaspora was instrumental in bringing skills, human and social capital, and networks needed to grow the sector in India.
- Facilitated trade agreements: Globalisation and strong diaspora communities have facilitated increased stipulation of preferential international trade agreements.
3. Foreign Policy:
- Institutionalisation of Diaspora-diplomacy is indicative of prominence of the role played by diaspora in foreign policy formulation. Thus, they act as an instrument of Soft-power and meet the limitations of hard-power. E.g., Senate India Caucus i.e., is a bipartisan coalition that promotes relations between the US and India.
- Act as a bridge between India and their host countries facilitating trade, investment, and cultural exchange.
4. Cultural significance:
Spread of Indian culture and tradition- Yoga, Ayurveda, Indian cuisine etc. increases India’s soft-power.
Challenges faced by Indian Diaspora:
- Brain Drain causes India loss of talent in the areas of research and development.
- Heterogeneous Diaspora: Indian diaspora has different demands from the Indian government. E.g., Low-skilled laborers in Gulf countries seek welfare support while service professionals (in West) look for streamlined visa and taxation policies.
- Issues arising out of Protectionism: Increase in incidences of hate crimes against Indian community and restrictive immigration policies (skilled Indian workers are viewed as taking native jobs). E.g., Denial of H-1B visas in the U.S.; attacks on Indians in Australia.
- Geopolitical Instabilities threaten the life and livelihood of the diaspora. E.g., Conflicts in regions like West Asia etc.
- Negative impacts: Some sections of India’s diaspora have indulged in negative campaigning and funding separatist groups in India such as Pro-Khalistan groups in Canada and Punjab.
- Policy and Structural gaps:
- Lack of dual citizenship provision in India’s constitution forces many of India's diaspora to quit India’s citizenship, despite wanting to be Indian citizens.
- No clear policy on diaspora despite their socio-economic contributions to India’s development.
- Lack of updated Database: Ministry of External Affairs does not have updated data on Indian diaspora, as registration with Indian Embassies is voluntary. In the absence of such a database, welfare schemes may not be implemented properly.
- Emigration Management Bill, 2022 has been under consultation and vetting for a long time. It seeks to establish an emigration framework, liberalise clearances, and strengthen welfare for overseas migrants.
- NRI Marriages: Increasing cases of women being deserted in NRI marriages. Registration of Marriage of Non-Resident Indian Bill, 2019 has not been enacted yet.
- Complex grievance redressal mechanism: Several portals such as e-Migrate, and Centralised Public Grievance Redressal and Monitoring System (CPGRAMS) are in place to resolve grievances of Indian nationals abroad. Multiple portals may delay grievance resolution due to duplication of work.
- Selective engagement: Exclusion of large sections of low-skilled and less wealthy diaspora from forums such as Pravasi Bharatiya Diwas etc.
- Challenges to Philanthropy: Despite the eagerness of PIOs/OCIs to donate generously, they face challenges such as FCRA, bureaucratic compliance and even hostilities, frustrating their efforts to contribute to the development of India.
Way Forward
- Formulation of a clear diaspora policy (Emigration Management Act) to serve as a guiding principle for engagement with diaspora. It should emphasise on diaspora welfare, dual citizenship, and streamlined grievance mechanisms like CPGRAMS.
- Portal for self-registration of diaspora, which would reflect updated databases and allow the Ministry to effectively implement welfare schemes.
- Diaspora Engagement: Events like Pravasi Bharatiya Divas should be more inclusive, ensuring representation from low-skilled and marginalised diaspora groups.
- Comprehensive rehabilitation scheme in coordination with the concerned Ministries, departments, state governments, and stakeholders, to ensure livelihood security for workers, who lost their jobs or are unable to return to their place of employment.
- Establish overseas One-Stop Centres to help distressed NRI women.
- Negotiating Standard Labour Export Agreements with the host countries. Monitoring and supervision of our overseas workers by our Missions. Compulsory insurance schemes cover the risks faced by our overseas workers.
- The government should consider setting up Special Economic Zones, exclusively for projects to be set up by NRIs/PIOs. Consider issuing special infrastructure bonds for attracting NRI/PIO investments, like the Israel Bonds.
The Indian diaspora is a robust asset contributing to India’s soft power and economic growth. India should formulate a new NRI policy, evacuation policy and foster good engagement to address their diverse challenges.