The Indian diaspora is most famous for its $135 billion worth of remittances, which is a world record for 2024–2025. Kerala, Maharashtra, Tamil Nadu, Karnataka, and Telangana were the biggest recipients. The role and contribution of NRIs in the political affairs of the countries where they reside have grown substantially in importance, especially since Mrs. Kamala Harris became Vice President of the United States and Mr. Rishi Sunak assumed office as Prime Minister of the United Kingdom. In commerce and business, NRIs have contributed very significantly — both as CEOs of top-notch companies abroad and through the valuable inflow of Foreign Direct Investment (FDI) into India.
In my book titled 100 Ideas to Improve Governance in India, published in 2018 and available on Kindle today, I had outlined ways and means by which NRI remittances could be substantially expanded. Some of the suggestions related to our Ambassadors abroad sharing data and working with the Ministry of External Affairs to enhance such remittances regularly by ironing out bottlenecks. The Banking Division of the Ministry of Finance could also monitor these remittances on a fortnightly basis and take steps to ensure that this vital flow of foreign exchange is not impeded by inconsequential factors. This division of the Finance Ministry should introduce new financial instruments to enhance such remittances from our 35 million–strong diaspora, spread across 180 countries of the world.
In the same vein, while the Indian diaspora has already contributed significantly, there is a need to harness their resources for India’s social development by helping create much-needed public infrastructure in seven lakh villages and seven thousand towns. One NRI recently spent ₹15 crores to build a state-of-the-art school in his native village in India. Against 350 lakh NRIs, we need just seven lakh committed individuals to choose their village of origin and create either a school, a college, a hospital, a skilling centre, a solar power plant, or the latest technologies in agriculture and MSME development — to usher in the kind of prosperity India needs to become Viksit Bharat by 2047. This, in my view, would be the biggest contribution of the NRI community.
In terms of their political role, because of limited opportunities domestically due to citizenship issues, the Indian diaspora has made inroads into the political arenas of their respective countries of residence. However, as Dr. Shashi Tharoor pointed out during the recent tariff war with the United States, the role and intervention of the large and reputed Indian community in the US left much to be desired. While researchers may continue to debate why this happened, the fact remains that the Indian diaspora abroad tends to live more in consonance with the laws and spirit of their country of residence rather than their country of origin. Hence, a challenge exists for all political parties in India to dovetail the NRIs’ political contributions in a manner that aligns with India’s aspiration of becoming a global force within the framework of political realism.
Diving deep into the Indian diaspora, I find that their contribution spans, as one source aptly puts it, “from Washington to Wellington in transforming global supply chains and innovation ecosystems.” Apart from the two top-notch political figures mentioned earlier, Leo Varadkar has served as Ireland’s Prime Minister, Wavel Ramkalawan as President of Seychelles, Priti Patel as UK Home Secretary, and Nik Gugger has represented the Swiss Parliament. Zohran Mamdani, as a New York State Assemblyman, and Sadiq Khan, as Mayor of London, have become household names. Recent breakthroughs include Ghazala Hashmi becoming Lieutenant Governor of Virginia, Aftab Pureval being re-elected as Mayor of Cincinnati, Anita Anand serving as Foreign Minister of Canada, Mohamed Irfaan Ali as President of Guyana, Chan Santokhi as President of Suriname, and Pravind Jugnauth as Prime Minister of Mauritius — all reflecting the diaspora’s growing influence in global politics. Diwali celebrations in the US and Little India in Singapore continue to enhance social cohesion and serve as solid sources of inspiration for Indian heritage.
Indian-origin businessmen dominate Silicon Valley, with names like Sundar Pichai, Satya Nadella, Shantanu Narayen, and Arvind Krishna sitting at the helm of technology giants. Over 20 Fortune 500 companies had CEOs of Indian origin in 2024. Ajay Banga chairs the World Bank, while Jay Chaudhry leads in cloud security. Vinod Khosla created business networks like TiE, and the Silicon Valley Indian Professionals Association continues to boost cross-border innovation, angel investment, and mentorship within the startup ecosystem.
TCS, Wipro, and Infosys have become crucial bridges for facilitating market access, capital, and knowledge exchange between India and the West. Indian-owned grocery stores, hotels, and ethnic product outlets nurture robust trading channels back to India. The soft power radiating through music, film, yoga, cuisine, and Indian festivals has added a new dimension to India’s global profile. Meanwhile, academics and scientists of Indian origin are pioneering breakthroughs in medical research, education, and intellectual exchange.
The Indian government has recognized the full potential of our diaspora and introduced schemes such as Overseas Citizenship of India (OCI) and the annual Pravasi Bharatiya Diwas (PBD) to strengthen their identity and enable them to cement their influence in India’s growth story. PBD has been instrumental in attracting new investments and showcasing success stories across various sectors of the economy. It has also facilitated partnerships involving global capital, expertise, and market access. Recent PBDs have emphasized the diaspora’s contribution to India’s vision of becoming a developed nation by 2047.
The Indian diaspora today is reshaping diplomacy, economics, and cultural discourse. Investors and entrepreneurs have been pivotal in India’s meteoric rise in the industrial and technology sectors. Software development, AI, FinTech, and e-commerce account for a significant part of their contribution. In this context, it is noteworthy that $7 billion has already been invested by the diaspora in the GIFT City of Ahmedabad.
Names like Lakshmi Mittal are renowned for establishing significant manufacturing bases abroad, while diaspora doctors lead their fields of specialization and provide research collaborations in biotechnology and healthcare innovation. Against a total FDI inflow of $81 billion in 2024–25, about one-third came exclusively from the Indian community — mainly through Singapore, the US, the UAE, the UK, and Mauritius. Undoubtedly, the global Indian diaspora has proved to be a major strategic asset, allowing India to strengthen its global footprint. If well-nurtured, it can become a powerful growth driver of the Indian economy.
Leave a Reply