Indian Diaspora: Complete UPSC Notes

The Indian Diaspora is a "living bridge" connecting India to the world. For UPSC aspirants, understanding this topic is crucial as it overlaps with International Relations, Economy, and Social Justice (GS Paper II).

Diaspora refers to the scattering or dispersion of a particular ethnic, national, or religious group across different parts of the world. The term "diaspora" originates from the Greek, meaning "scattering" or "sowing of seeds." 

The Indian Diaspora refers to the group of people who are currently living outside India, either temporarily or permanently, but trace their origin or citizenship back to India. 

• India received a record US$135.46 billion in remittances in FY 2024-25, marking a 14% year-on-year increase from US$119 billion in FY 2023-24.
• Remittances contributed over 10% to India's gross current account inflows of US$1 trillion in FY25.
• Remittances covered nearly 47% of India's merchandise trade deficit of US$287 billion.
• According to the Reserve Bank of India, the country is projected to receive remittances worth $160 billion by 2029.
• India’s share of all the money sent home by migrants worldwide increased from 11% in 2001 to 14% in 2024.

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Diasporas are classified based on the reasons behind migration and community characteristics. 

1. Victim Diaspora: Forced displacement due to persecution or trauma (e.g., Jewish, African, Armenian diasporas)
2. Labour Diaspora: Mass migration for work and economic opportunities (e.g., Indian indentured workers, Turkish migrants)
3. Imperial Diaspora: Expansion linked to empires and colonial service (e.g., British, French diasporas)
4. Trade Diaspora: Migration to establish commerce networks (e.g., Chinese, Lebanese merchants)
5. Cultural Diaspora: Chain migration preserving cultural ties (e.g., Caribbean, Sindhi communities)

Also read: International Monetary Fund (IMF) UPSC Notes: History, Objectives, Functions & SDR

The Ministry of External Affairs categorises the diaspora into three specific categories based on their citizenship and duration of stay.

1. Non-Resident Indian (NRI):

• An Indian citizen holding a valid Indian passport.
• Lives outside India for more than 182 days in a financial year (usually for employment, business, or education).
• Has voting rights in India but cannot contest elections.

2. Person of Indian Origin (PIO):

A foreign citizen (except nationals of Pakistan, Bangladesh, etc.) who:

• Held an Indian passport at any time
• Or whose parents/grandparents/great-grandparents were born in and permanently resident in India

Note: The PIO card scheme was merged with the OCI scheme in 2015

3. Overseas Citizen of India (OCI):

• A foreign national eligible for Indian citizenship on or after 26th January 1950
• Granted a lifelong visa to visit India
• Cannot vote, hold public office, or buy agricultural land in India

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The Indian diaspora has grown significantly over the past two decades, driven by multiple interconnected factors that have created both push and pull dynamics in migration patterns.

• Indentured Labour: Millions were taken by the British to work on plantations in countries like Mauritius, Fiji, Suriname, and Guyana.​
• Kangani/Maistry System: Migration to neighbouring countries like Myanmar (Burma) and Sri Lanka for tea and rubber plantations.
• The "Brain Drain" (1970s-90s): Skilled professionals (Doctors, Engineers) moved to the US, UK, and Canada for better wages and standard of living.​
• The "Oil Boom" (1970s onwards): Semi-skilled and unskilled workers migrated to Gulf countries (GCC) for infrastructure projects.
• Student Migration (Recent): A surge in students moving abroad for higher education (STEM courses) in the US, UK, and Australia.

Also read: Monetary Policy in India: Complete Notes for UPSC Indian Economy

The Indian diaspora is unique because it is not a monolithic group; it is highly diverse yet culturally unified.

• Highly Skilled: A significant portion is employed in high-value sectors like IT, medicine, and engineering.
• High Income: In countries like the USA, the Indian diaspora has the highest median household income among all ethnic groups.
• Political Influence: Rising prominence in global politics (e.g., Rishi Sunak in the UK, Kamala Harris in the USA, and various leaders in Singapore and Canada).
• Law-Abiding: Known for low crime rates and high social integration.
• Peaceful Integration: They assimilate well while preserving their cultural identity ("Salad Bowl" model).

The diaspora serves as a powerful bridge between India and the world, acting as "soft power" ambassadors.

• Record Remittances: FY25 remittances of $135.46 billion demonstrate India's economic interdependence with its diaspora.
• Foreign Exchange Reserve: Remittances provide crucial foreign exchange reserves, supporting India's balance of payments and currency stability.
• Startup Ecosystem: Indian diaspora members founding globally recognised companies and leading innovation in Silicon Valley and globally.
• Tourism Promotion: Diaspora engagement with the "Chalo India" campaign is increasing tourism and global interest in India.
• Professional Networks: Creating platforms for Indian talent to engage with global professional communities.
• Global Advocacy: Diaspora serving as informal ambassadors advancing India's foreign policy interests.
• Crisis Response: Evacuation operations like Operation Sindhu (2025) demonstrate the government's commitment to protecting the diaspora.

Also read: Unemployment in India UPSC Notes: Types, Causes & Government Measures

The government has shifted its policy from "active dissociation" (pre-1990s) to "proactive engagement" to connect with the diaspora.

1. Pravasi Bharatiya Divas (PBD):

• Celebrated biennially on January 9th, commemorating Mahatma Gandhi's return from South Africa in 1915.
• 18th PBD Convention held in Bhubaneswar, Odisha (January 8-10, 2025) with the theme "Diaspora's Contribution to a Viksit Bharat".
• Recognises outstanding achievements through the prestigious Pravasi Bharatiya Samman Awards (PBSA).

2. Pravasi Teertha Darshan Yojana and Pravasi Bharatiya Express

• Special tourist train launched in January 2025 for diaspora members.
• Departs from Nizamuddin Railway Station in Delhi.
• Travels to multiple destinations of touristic and religious importance.

3. Know India Programme (KIP) - Youth Engagement

• Initiated by the Ministry of External Affairs for diaspora youth aged 21-35 years.
• Three-week orientation course (knowledge tourism) providing exposure to contemporary India.
• Participants were exposed to India's political processes, economy, and technological development.

4. OCI Card - Lifetime Visa Facility

• A lifetime multiple-entry visa to India, eliminating frequent visa renewals​.
• Exemption from registration with the Foreigners Regional Registration Office (FRRO).
• Property ownership rights in India (except agricultural land).
• Economic privileges equal to NRIs, including banking and investment access.

5. Pravasi Bharatiya Bima Yojana (PBBY) - Worker Insurance Scheme

• Mandatory insurance scheme for Indian migrant workers emigrating to 19 ECR countries.
• Insurance coverage of INR 10 lakh.
• Covers accidental death or permanent disability leading to job loss.
• Nominal premium of INR 275 for two years or INR 375 for three years.

6. Pre-Departure Orientation & Training (PDOT) - Worker Preparation

• One-day training program on soft skills for emigrating workers.
• Implemented by the Ministry of External Affairs in collaboration with the National Skill Development Corporation (NSDC).
• Partnership with state governments and stakeholders.

7. e-Migrate Portal 2.0 (Launched 2024)

• Digital platform facilitating safe, legal, and transparent migration for Indian workers
• 24/7 multilingual helpline in regional languages
• Integration with DigiLocker for secure, paperless document storage and clearances.

Also read: Five-Year Plans of India: Complete Notes for UPSC

Despite their major contributions to host countries and India’s economy, the Indian diaspora faces diverse challenges across cultural, social, economic, and legal spheres.

• Dual Discrimination: Face both external racism from non-Indians and internal regional bias within the Indian diaspora itself.
• Visa and Legal Issues: Restrictive immigration policies, lack of dual citizenship options, and rising deportations from host countries like the US.
• Brain Drain: India loses highly educated professionals; 59% of Indian migrants cite career opportunities as their primary reason for emigration.
• Labour Exploitation: Low-skilled migrants in Middle Eastern countries face the "Kafala" system, leading to workplace exploitation and document seizure.
• Limited Government Support: Exclusion of less wealthy migrants from official diaspora engagement forums like Pravasi Bharatiya Divas.

To fully utilise the potential of the diaspora for a Viksit Bharat by 2047, a proactive approach is needed.

• Enact a comprehensive law to protect the rights and welfare of Indian workers abroad.
• Create a real-time global migrant database for effective welfare delivery.
• Skill Indian youth for global job markets (caregiving, AI, green tech) to promote legal migration.
• Encourage top scientists and tech leaders to return to or collaborate with India.

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