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Introduction

In recent years, the Indian diaspora in the West has emerged as a key pillar of India’s global engagement. With around 35 million people of Indian origin residing globally, their strategic contributions are not only deepening India’s foreign ties but also propelling its aspirations of becoming a Viksit Bharat by 2047, making the diaspora an indispensable asset in India’s growth story.

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Economic Benefits for India

• Record Remittance Inflows: Remittances from the Western Indian diaspora boost India’s foreign exchange reserves, ensuring macroeconomic stability and supporting domestic growth.
  Eg: In 2024, India received a record US$130 billion in remittances, the highest globally.
• Boost to Financial Inclusion: Remittances promote financial inclusion by encouraging bank account usage and formal investment among rural and low-income households.
  Eg: NRI deposits grew to US$165 billion by March 2025, registering a 9.9% annual increase, boosting domestic financial institutions.
• Entrepreneurship & Start-Up Engagement: Diaspora members actively invest in India’s startup ecosystem, promoting innovation and employment.
• Skill-Driven Economic Boost: Skilled Indian diaspora professionals boost India’s growth by transferring advanced technology, management expertise, and innovative practices from the West.
• Globalization of Indian Higher Education: Diaspora engagement strengthens India’s education sector by promoting international collaborations, research funding, and student mobility.
  Eg: IIT-Madras’ offshore campus in Zanzibar (2023) was enabled with diaspora support, reflecting India’s growing education export capacity.
• Expansion of Digital Financial Channels for Remittances: It reduces transaction costs and increases inflows, which directly boost India’s foreign exchange reserves and liquidity.
  Eg: UPI integration in France, Qatar, and Oman has enabled faster, low-cost remittances, boosting household income and consumption in India.

Political Benefits for India

• Representation in Political Leadership: Indian-origin leaders in Western politics act as informal bridges between India and their host countries, easing negotiations and enhancing bilateral goodwill.
  Eg: Kamala Harris (US Vice President) and Rishi Sunak (UK PM) add visibility to Indian interests at the highest levels of government.
• Diplomatic Advocacy and Policy Influence: Diaspora experts and lobbyists promote India’s strategic interests by shaping foreign policy and influencing international institutions.
  Eg: Indian-American groups played a key role in mobilising support for the 2008 US–India Civil Nuclear Agreement.
• Public Diplomacy and Electoral Engagement: Massive diaspora rallies enhance India’s international political image and offer soft power leverage.
  Eg: The “Howdy Modi” and “Namaste Trump” events demonstrated political solidarity and mobilised public opinion in favour of India.
• Countering Global Misinformation: Diaspora-led organisations proactively combat misinformation about India in Western policy circles and media.
  Eg: Groups like the Hindu American Foundation have countered misleading narratives on human rights and religious freedom.
• Cultural Diplomacy: Large-scale cultural outreach by diaspora enables a positive political climate for India abroad.
  Eg: Diwali celebrations in Times Square and UK Parliament build goodwill and cultural affinity.

Conclusion

As India charts its course toward becoming a global power, leveraging its diaspora is a strategic necessity. With inclusive policies and institutional support, this transnational community can become a long-term partner in nation-building, enhancing India’s influence, credibility, and global connectivity.

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