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Indian diaspora has scaled new Heights in the West. Describe its economic and political benefits for India. | UPSC 2023 General Studies Paper 2 Mains PYQ


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

(UPSC 2023 General Studies Paper 2 (Main) Exam, Answer in 150 words)


According to the 2022 World Migration Report, the Indian diaspora is the largest in the world. Indian diaspora living in the West mainly, in the United States, Canada, the United Kingdom, and Australia, has indeed made significant contributions, bringing economic and political benefits to India.

The following are economic and political benefits for India:

Remittances inflow: 

India received $87 billion in 2021 as remittance, which is the largest in the world. About 23 % of the total remittance comes from the United States of America alone. 

Remittance inflow adds to the foreign exchange reserves and helps in a positive balance of payment.

Remittance inflow supports improving the standard of living for many families in India and supports local economies.

Entrepreneurship and Investments:

The Indian diaspora has played a vital role in entrepreneurship and investment. Many diaspora members have started successful businesses or invested in Indian ventures, fostering economic growth and job creation. 

For example, Sundar Pichai (CEO of Google) expanded Google's business in India.

Global Networking:

India's diaspora has facilitated trade and business collaborations between India and Western Countries. This has opened opportunities for Indian businesses to expand globally and establish international partnerships.

India's diaspora works as Brand ambassador [ soft power diplomacy]:

The success and influence of the Indian diaspora in Western countries enhance India's diplomatic leverage. 

Cultural Diplomacy:

The Indian diaspora serves as the bridge for cultural exchanges, fostering a better understanding of India in Western societies.

Cultural diplomacy contributes to stronger bilateral relations and improved perceptions of India on the global stage.

Political Representation:

Some members of the Indian diaspora actively participate in the political process of Western Countries, holding positions in local, state, or national governments. For example, Rishi Sunak ( PM of the UK), and Kamala Harries (United States of America, Vice President). 

It contributes positively to India's image in the West.

In summary, the Indian diaspora in the West is a valuable asset for India, contributing economically through remittances, investments, and entrepreneurship; and politically through diplomatic influence, cultural diplomacy, and advocacy. This will further strengthen India's position on the global stage.

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