Indian diaspora as a strategic asset

With one of the largest pools of relatively low wage semi-skilled and skilled labour, India is poised as a critical of global sourcing of labour. How can India take advantage of these future trends, so as not only to maximise the welfare of Indians outside the country, but that of those within the country as well? Can international migration and the diaspora be a strategic asset for the country instead of just depleting its best and brightest? In this article, the author weighs the effects of the Indian diasapora on their country of settlement against the loss of talent within institutional building,and entrepreneurship in their country of origin. He argues that while support given through 'nationalistic 'lobbying and advocacy has proved beneficial, their belated support for extremist civil society and political groups has proved detrimental for the country.

The author also recommends the following policy changes towards the diasapora in order to ensure a more equitable balance directed toward tapping this resource, namely:

• policies should treat the diaspora at par with other foreigners on economic issues (such as investment incentives) while treating them at par with resident Indians on civil, social and cultural rights, such that nationals would not have to leave the country in order to gain recognition
• to actively court two important, but largely untapped, segments of the existing diaspora: the young, second generation of overseas Indians; and those approaching retirement. India risks losing its links with the second generation unless it finds mechanisms to attract them to come and spend some time in India
• India’s migration and manpower policies need greater portfolio diversification both with respect to the countries of migration and the portfolio of jobs.
• if India is to become a major exporter of skilled manpower it must liberalise its policies for skilled professionals (especially those of Indian origin) with foreign degrees (at least from recognised institutions).