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

Model Answer


The Indian diaspora, numbering over 31 million individuals, has gained significant prominence, particularly in Western countries. They play a pivotal role in representing India’s interests, not only in economic realms with influential figures like Satya Nadella, Sundar Pichai, and Ajay Banga but also in the political arena, including figures like Rishi Sunak and Kamala Harris.



Remittances: Vital source of remittances (More than $100 billion), serving as a form of private social protection while also spurring increased consumption and community development. 

Brain Gain: Through acquisition of skills and knowledge abroad and transferring them back to India, notably benefiting sectors like IT. 

FDI: Their affinity for Indian culture drives FDI and facilitates international trade, investment, and entrepreneurial ventures.


Lobbying and Advocacy: India – The civil nuclear deal between India and US was a result of lobbying and campaign by Indian-Americans (INDIA CAUCUS)

Multilateral Diplomacy: UK under Rishi Sunak and also the leaders of the USA had in the past supported India’s candidature for permanent member of UNSC.

Bilateral Diplomacy: Relaxed visa regime post-Brexit with UK, renewed focus on India-UK FTA under Rishi Sunak and the demand for early conclusion of India-EU FTA.Soft-power: Diaspora act as bridge-builders and showcase Indian rich heritage and culture in the host country, thus enhancing cultural and people to people contact.


This dual role of diaspora communities underscores their vital contributions to both their home and host countries, fostering economic growth and strengthening political ties on a global scale.

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