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Write short notes on the contribution of the Indian diaspora towards economic structure in India. | UPPSC General Studies-II Mains Solutions 2018


Write short notes on the contribution of the Indian diaspora towards economic structure in India.

 (UPPSC, UP PCS Mains General Studies-II/GS-2 2018)


Indian diaspora are Indian people who live outside India, they have contributed significantly to India's economic structure.

Following is the contribution of the Indian diaspora to India's economic system:


Indian diaspora is known for sending adequate remittances to India. In 2020, overseas Indians sent more than $ 83 billion to India, which is the highest in the world. These remittances provide an important source of foreign exchange and contribute significantly to the country's economy. This payment contributes positively to the balance (BOP) and Forex Reserve. Relations help promote domestic income, improve the standard of living, and support local businesses, especially in rural areas.

Reducing unemployment in India:

Especially in West Asia, the migration of less skilled workers helps bring down the disguised unemployment in India.


Indian diaspora has been actively involved in investing in various sectors of the Indian economy. They contribute to both foreign direct investment (FDI) and portfolio investment, playing a role in areas such as information technology, manufacturing, real estate, healthcare, and education. Their investment contributes to employment generation, development of infrastructure, and overall economic development.

Entrepreneurship and Business Development:

Many members of the Indian Diaspora have become successful entrepreneurs and business leaders in their adopted countries. They take advantage of their skills, networks, and capital to establish businesses and enterprises in India. These initiatives create employment opportunities, promote innovation, and promote economic growth.

Knowledge transfer and skill enhancement:

Indian diaspora brings valuable knowledge, skills, and expertise obtained through their experiences. They contribute to the transfer of technology, best practices, and managerial expertise. This knowledge transfer helps in increasing various sectors of the Indian economy, enhances productivity, and allows to adopt global trade standards.

Philanthropy and Social Initiative:

Indian diaspora is actively engaged in philanthropic activities and social initiatives in India. They contribute to social development projects, educational institutions, health facilities, and community development programs. Their philanthropic efforts have a positive impact on society, reduce social challenges, and promote inclusive growth.

Cultural Exchange and Tourism:

Indian diaspora act as cultural ambassadors promoting culture, traditions, and tourism. They play an important role in promoting cultural exchange, organizing programs, and showing India's diversity. Their efforts attract tourists, promote the hospitality industry, and contribute to the country's revenue through tourism.

Overall, the contribution of Indian migrants to India's economic structure has been sufficient. Their remittance, investment, entrepreneurial undertaking, knowledge transfer, philanthropic activities, and promoting Indian culture have positively affected the country's economic development, development, and global integration. The Government of India recognizes their importance and has implemented policies and initiatives to attach and exploit the capacity of the migrant for the progress of the country.

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