Transforming India- India’s Incredible Diaspora | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Soft Power diplomacy

•  Contrary to common belief, the younger generation in India and Southeast Asia communicate more through cultural avenues like music, arts, games, and education.
• Social media has had a significant positive impact on strengthening cultural bonds.
• Yoga is becoming increasingly popular in the ASEAN region, facilitated by the Buddhist connections and circuits in India that serve as a link between the two regions.
• India's influence is showcased through Buddhism, yoga, the revival of Nalanda University, Indian studies chairs in universities, cultural centers in various cities, and collaborative monument restoration projects. 
• Traditional Hindu temples and celebrations of Hindu festivals persist to this day.

Opportunities that Indian diaspora brings

• According to a committee in India's Parliament, there were 4.7 crore Indians as of December 31, 2021, which includes students.
• The World Migration Report by the United Nations states that India has the largest number of people living abroad, with Mexico, Russia, and China following behind.
• Indians living abroad act as a crucial link for sharing knowledge, skills, resources, and markets between their home country and the rest of the world.
• The Indian Diaspora plays a vital role in India's soft diplomacy or diaspora diplomacy. For instance, they were instrumental in the Indo-US Nuclear deal.
• They have significantly contributed to the success of their host countries, exemplified by the achievements of Indians in Silicon Valley.
• The Indian Diaspora has made notable contributions in the field of Science & Technology.
• They are a major source of trade and investment for India through transnational entrepreneurship.
• The Indian Diaspora sends large amounts of money back home as remittances, which helps balance the country's financial accounts and supports socio-economic development and poverty alleviation. Indian Diaspora is currently the biggest earner of remittances globally according to the World Bank.
• They also spread Indian culture and traditions globally, benefiting India as a whole. Examples include promoting Yoga, Ayurveda, and Indian cuisine.

Challenges posed by the diaspora

• The Parliamentary Committee mentioned that traditions like the PBD seem to leave out a large part of the diaspora who aren't rich (low/semi-skilled and blue-collar workers).
• Decreased oil prices due to the Shale gas boom and slower global growth are leading to job reductions for Indians.
• Prejudiced practices stemming from a racist, colonial attitude still endure. This makes it hard to find jobs and work permits.
• Backing from the diaspora isn't always given and steady, and their concerns might not align with India's interests. For instance, the Indian community in the US didn't strongly criticize Trump's plan to limit the H-1B visa program, which has helped many Indians.
• Most of the Indian Diaspora wish to keep their Indian citizenship alongside their host country's citizenship.
• Another obstacle is that remittances might not always be used for good purposes. For example, India faced issues due to foreign support for extremist movements like the Khalistan movement.
• Indians tend to pursue higher education abroad and work as scientists and economists overseas, leading to India losing talent in research and development fields.
• Reports indicate that the e-Migrate system and the Minimum Referral Wages policy have harmed India as companies now find it simpler to employ workers from nations like Bangladesh and Pakistan.

Way Forward

• The PBD convention should involve more people from different parts of the diaspora community, especially those who are vulnerable.
• To make Diaspora members feel welcome when they arrive in India, the processes for immigration and customs should be made simpler and more friendly.
• We need to make it easier for foreign funds to come into the country.
• We must address the issues faced by our blue-collar workers abroad.
• We should negotiate agreements about labor with the countries where our workers go.
• Our embassies should keep a close eye on our workers abroad to make sure they are safe.
• It's important to have insurance that covers the risks faced by our workers abroad.
• We should practice inclusive diplomacy.
• People of Indian origin should visit their home state or relatives more often. We should encourage the younger generation of PIOs to explore tourism opportunities.
• We need to take care of Indian women married to NRIs/PIOs.
• Professionals from the diaspora who hold senior positions in the manufacturing industry can help promote India as a key location for outsourcing.
• The government should think about creating Special Economic Zones specifically for projects by NRIs/PIOs.
• Consider issuing special bonds to attract investments from NRIs/PIOs, similar to the Israel Bonds.
• India needs to find ways to utilize the financial and intellectual resources of its widespread diaspora effectively.