India has the largest diaspora in the world, with almost 18 million Indians living outside of their home country, according to UN estimates from 2020. This diaspora is a valuable resource for India’s government, as migrants have stronger ties to their motherland and can build vital links between their adopted homes and their birthplaces. In 2022, India received a record of nearly $108 billion in inward remittances, which is more than any other country and accounts for around 3% of India’s GDP. Overseas Indians also contribute to cross-border trade and investment, boosting India’s image and benefiting Prime Minister Narendra Modi.
Compared to China, the Indian diaspora has been more successful abroad and has faced less suspicion. The Chinese diaspora numbers around 10.5 million, while the Indian diaspora is larger and more dispersed, with Indian-born migrants found across the world. The Indian-born population exceeds the Chinese-born population in many rich countries, such as the United States and Britain.
India has the potential to be a leading exporter of talent, with a large young population and excellent higher education institutions. Indians’ mastery of English, a legacy of British colonial rule, is also an advantage. In contrast to Chinese immigrants, a smaller percentage of Indian immigrants in America have limited command of English. Since Indian independence in 1947, there have been several waves of migration to the rich world, allowing the Indian diaspora to grow in size and influence. The first wave involved low-skilled workers, while subsequent waves included skilled professionals and entrepreneurs.
Overall, the Indian diaspora holds significant economic and geopolitical importance for India. Their contributions through remittances, trade, and investment strengthen India’s economy and global image. The success of the Indian diaspora abroad highlights India’s potential as a talent exporter and the importance of education and language skills in facilitating their achievements.
