ROLE OF INDIAN DIASPORA IN VARIOUS REGIONS

Published on 07 Jan 2025

Role of Indian diaspora in America and European countries

• Remittance: Indian diaspora in the western nations are usually engaged in high salaried-skilled employment. A portion of the income earned by them gets sent back to India, which is a vital source of India’s exchange.

• Example: According to the Ministry of Finance, 23.4% of India’s remittance is coming from the USA.

• Investment potential: Many successful business ventures belong to the diaspora population and they willingly invest in India due to India’s growth potential and the homeland sentiments.

• Example: Indians are heading American MNCs with CEOs like Sundar Pichai (Google), Laxman Narasimhan (Starbucks), and Satya Nadella (Microsoft).

• Trade: Indian origin people in foreign land have affinity towards buying Indian products, which increases India’s export to USA and Europe.

• Example: As per Ministry of Commerce, USA is India’s largest trading partner with two way trade around $128 billion. India’s trade with the EU have also crossed $120 billion.

• Facilitate strategic decisions: Since Indian diaspora in Europe and USA constitute an affluent section, they can lobby for India’s demands and influence the decisions of policy makers. 

• Example: Lobbying by the National Federation of Indian American Association resulted in the relaxation of US policy over sanctions on India after the 1998 nuclear tests and the eventual signing of India-US Nuclear Deal in 2008.

• Political representation: The esteemed position of Indian diaspora makes them sound political candidates, with many securing high positions in western governments. Thus, they play a significant strategic role in improving political ties.

• Example: Indian origin leaders like Kamala Harris (USA’s Vice President), Rishi Sunak (UK’s Prime Minister), Antonio Costa (Portugal’s Prime Minister) etc. have significant potential to influence bilateral ties.

• Influence on elections: Due to the large number of Indian origin people in the USA, they could be important deciders in swing states. 

• Example: Indian-Americans constitute close to 1% of registered voters in the USA. Similarly, Indian-origins are a crucial minority in the Netherlands and England.

• Cultural exchange: Diaspora facilitate movement of cultures across two continents, in the form of food, dressing style, entertainment industry etc. Thus it results in fusion of cultures, which enhances India’s soft power in the region.

• Example: The popularization of Yoga, Ayurveda etc. in the west and the influence of European dresses on Indian styles shows the cultural exchange.

Role of Indian diaspora in South-East Asian countries

• Culture and religious connect: From ancient times, India has had cultural and religious exchange with South-East Asia due to their proximity and maritime trade. This cultural ties still prevails owing to the significant diaspora stationed in the South-Eastern region.

• Example: The ideas of Buddhism spread to South-East Asia from India. Ramayana and Mahabharata have been adapted into Southeast Asia in the form of Thai Ramakien and the Javanese Ramayana.

• Trade and investment: Many Indian corporate houses are active in the Indo-Pacific regions, especially in Singapore, Malaysia and Indonesia. This connection facilitates employment generation and  flow of investment into both sides.

• Example: Indian companies like Tata Power, Adani, L&T, Godrej, Wipro, TCS etc. have established fully owned subsidiaries/ joint ventures in the region.

• Remittance flow: The Indian communities working in South East Asia ensure regular flow of remittance into Indian soil, which boosts India’s economy.

• Example: As per Ministry of Finance, the remittance from Singapore is the fourth largest for India, accounting for 5.7%. Hong Kong and Malaysia are also ranked in the top 10 among remittance sources for India.

• Philanthropic activities: Indian charities and foundations have contributed to the development of healthcare, education and other social services in the region.

• Example: TATA Trusts have partnered with the Thai government to provide healthcare services to the rural communities in Thailand.

• Education and research: Indian community is active as educators and researchers in the region, and hence contribute to human development in South-East Asia.

• Political influence: The Indian communities are not well politically occupied in south-east Asia, and hence have limited lobbying power to facilitate India’s political demands.

Role of Indian diaspora in West Asian countries

• Labour force: Workers from India form a significant portion of the total labour force of the West Asian economies, and hence are critical for achieving their developmental goals.

• Example: As per Ministry of External Affairs, around 89.5 lakh Indians are working in Gulf economies, with over 35 lakh in UAE and 24 lakhs in Saudi Arabia.

• Remittance: Since the vast majority of Indians working in West Asia are not permanently settled, the flow of remittance is higher and much more stable.

• Example: As per the Finance Ministry, UAE is the second largest source for remittance into India with 18%. Saudi Arabia (5th), Kuwait (6th), Oman (7th) and Qatar (8th) are other contributors to remittance.

• Trade relation: The presence of diaspora encourages the nations to engage in trade agreements which expands the trade between India and the western portion of the continent.

• Example: The Indian population in the Gulf and their transactions must have influenced the government to launch UPI services in Saudi Arabia, UAE, Oman and Qatar.

• Influence strategic decisions: Though the Indian diaspora has little political power in West Asia, their sheer number in the labour force compels the government to take strategic decisions favourable to India and vice versa.

• Example: The huge strength of the diaspora has compelled India, the largest democracy, to have strategic ties with both Saudi and UAE, both ruled by monarchs.

• Cultural ties: India has the third highest Muslims population in the world and this enables better cultural ties with the Islamic Arab world. Moreover, the migration of Hindu workers from India aids in bringing diversity in the Arab culture.

• Example: Saudi facilitating 1.75 lakh Indians every year for Hajj pilgrimage and the opening of BAPS Hindu Mandir in Abu Dhabi by Modi.

• Health and education: Indian healthcare and educational professionals are present in large numbers in West Asia, thus contributing to human development in the region.

• Example: As per External Affairs Ministry, there are 217 Indian schools in GCC with recently an offshore campus of IIT Delhi was started in UAE.

Role of Indian diaspora in African countries

• Indian entrepreneurs: Africa has a rich untapped resource base, which could be capitalized by India. The rise of India entrepreneurs in Africa, notably in the field of agriculture contributes to development of both nations.

• Example: Ruchi Soya Industries has signed a 25-year long agreement with Ethiopia for soybean cultivation. Similar agreements exist between Indian companies for pulses cultivation in Tanzania and Mozambique.

• Health service: The Indians have been prominent players in the healthcare sector in Africa due to lack of quality healthcare personnels in the continent.

• Example: Contribution of health professionals from India in combating AIDS, malaria and Ebola in Africa.

• Education and capacity building: Indian professionals are well acknowledged for the education services and capacity building initiatives in Africa, which aids in the development of a better future.

• Example: First IIT campus outside India will be set up in Tanzania. Indians are also active as educators in Africa.

• Cultural ties: Though cultural interconnection has been minimal, the diaspora has facilitated the spread of Indian entertainment, literature and cuisines in some parts of Africa.

• Example: The popularity of Bollywood in Nigeria.

• Philanthropic impact: Indian diaspora led organizations and individuals are involved in philanthropic activities in many African countries, facilitating their socio-economic development.

• Example: Indian-origin Dr. Imitiaz Sooliman, founder of disaster relief group Gift of the Givers, won the South African of the Year award for his social contributions.

Issues faced by Indian diaspora community

• Biased treatment: Discrimination on the basis of origin, ethnicity, religion and colour is faced by Indian origins in diverse parts of the world. The intensity of discrimination depends on the degree of fundamentalism persisting in that society.

• Example: Based on Indian American Attitudes Survey, one in two Indian American reports being discriminated against in the past one year.

• Poor working conditions: Indians employed in blue collar jobs, mostly in the Gulf nations, face unhealthy working conditions and even get subjected to human rights violation.

• Example: Workers employed under the Kafala system in many GCC countries are subjected to exploitation from their employers due to limited availability of labour protection under the system.

• Nationalization policy of government: Often, nations deploy anti-migratory policies imposing restrictions on visas, employment of foreigners etc., which affects the opportunities for the Indian diaspora.

• Example: Anti immigration policies of the Trump government and Nitaqat policy (job quota for nationals) of Saudi have affected the job opportunities of diaspora.

• Security threat: Being a minority in a foreign nation, diaspora communities are more prone to attacks if there is any fallout in bilateral relations between nations.

• Example: Canada’s allegation of India’s involvement in the killing of pro-Khalistan leader Hardeep Singh Nijar created security concerns for the Sikh residents in Canada.

• Lack of authentic database: Since the registration by the diaspora is voluntary, the entire diaspora shall not register with the Indian embassy, resulting in undercounting.

• Absence of any specific policy: Indian policy towards diaspora has been flexible based on the feedback it receives from the diaspora, which affects consistency in policies. This is largely due to the varying nature of demands from diverse diasporas.

• Example: Gulf diaspora looks for support on welfare issues, western diaspora on measures to ease investment, while diaspora in Africa looks for enhancing connection on cultural grounds.

• Lack of proper grievance mechanism: Low paid workers are not well connected with embassies and are not in a position to convey their grievances to the authorities.

Government Initiatives to improve connections with diaspora

• Overseas Citizen of India scheme: Offers certain benefits comparable to Indian citizens in fields like education, economy, etc. and allows for lifetime, multiple and multi-entry visa with some rights.

• Pravasi Bharatiya Bima Yojana: Provides insurance coverage to Indian migrant workers against death or permanent disability due to accidents.

• Pravasi Bharatiya Diwas: Celebrated on January 9th, to mark the contribution of the overseas community to the development of India.

• Know India Programme: Aims to connect young overseas Indians with their Indian roots by providing them with firsthand experience of Indian culture, heritage and contemporary India.

Way Forward

• Paradiplomacy: Encourage state governments to establish better connections with foreign powers by using the diaspora support. For instance, Kerala with Gulf nations, West Bengal with Bangladesh, Tamil Nadu with Malaysia etc.

• Rehabilitation scheme: A comprehensive mechanism for upskill-cum-placement of workers who have lost employment in foreign soil and sailed back to India.

• Sound grievance redressal mechanism: Employees, especially blue collar workers, need to have a better connection with the embassy and there must be a convenient process for airing their grievances. Proper care must be taken to look into pending cases and solve new cases.

• Maintenance of data: Databases of the diaspora should be updated regularly, so that the benefits offered by the government are properly reaching the people.

Thus, diaspora are valuable assets of the country, which could be used as effective instruments to strengthen India’s soft power. The Modi government has acknowledged their importance, referring to these permanent ambassadors as Reshtradoots, whose contributions could prove immensely useful in advancing India’s foreign policy goals.

Tags:
Polity

Keywords:
ROLE OF INDIAN DIASPORA IN VARIOUS REGIONS USA EUROPE Africa west asia south east asia diaspora soft power diplomacy Remittance investment trade political representation Cultural exchange

Syllabus:
General Studies Paper 2

Topics:
International Relations