45% Indian-Americans went after 2010, median age below US average: Report

Quoting data from the Migration Policy Institute, the impact report says that of the Indian diaspora’s 5.1 million people in the US, about 2.8 million are first-generation immigrants. Approximately 30 per cent of them migrated to the US before 2000, while around 45% made the move after 2010. The community is largely concentrated in New York State and California.

According to the most recent census, their median age is 36 years — a bit younger than the median population of the US as a whole, says the report, which was released by External Affairs Minister S Jaishankar and US Ambassador to India Eric Garcetti in Delhi on Tuesday.

The median income of the Indian-Americans — around $136,000 – is almost double than that of the US average, according to the report.

“Indian-Americans account for only 1.5% of the US population, yet they continue to have an outsized and positive impact across different aspects of US society,” said Indiaspora founder M R Rangaswami.

Incidentally, former PepsiCo CEO and Chairman Indra Nooyi and former US Ambassador to India Ken Juster are members of the Steering Committee in preparing the report.

While the United Arab Emirates is home to the largest segment of the Indian diaspora, the US is home to the second largest, the report says. The biggest draw for them is the educational offerings in the US.

According to the report, 78% Indian-Americans hold bachelor’s degrees or higher, which outpaces the US national average of 36%.

According to Boston Consulting Group estimates, members of the community contribute 5-6% ($300 billion) in tax revenues annually, on top of the $370-$460 billion in annual spending, which translates into a major economic wave in terms of sales tax, business growth, and support of employment.

From Silicon Valley tech giants to global conglomerates, Indian-origin leaders are steering some of the most influential companies, the report says.

Indian-origin CEOs were at the helm of 16 Fortune 500 companies in 2023 (3%), managing enterprises that generated roughly $978 billion (5%) in revenues and employed 2.5 million people (9%) across the globe that year.

As many as 72 unicorn startups out of 648 in the US are led by Indian-origin founders, with their collective value exceeding $195 billion, employing 55,000 people (approximately 13% of the unicorn workforce). Quoting a 2020 study by the National Bureau of Economic Research and Harvard University, the report says the Indian diaspora’s share of patents increased from 1.9% in 1975 to 10% in 2019.

Many diaspora members come to the US to study. According to Open Doors data for 2022-2023, around 2,70,000 students from India pursue graduate and undergraduate degrees in US universities. This accounts for 25% of the international student population in the US, says the report.

There is a preference for studies in STEM (Science, Technology, Engineering, and Mathematics) subjects among the Indian students, with over 70% enrolled in engineering, computer science, or life science programmes — along with 10% in business/management programmes – as of 2023. Around 60% of them are enrolled in graduate-level programmes.

In healthcare, Indian-origin physicians comprise 10% of all doctors in the US, serving 30% of the patients.

According to data collected by the Asian American Hotel Owners Association, Indian Americans own around 60% of all US hotels, generating $700 billion in revenue and creating over 4 million jobs, directly and indirectly. Indian Americans also own an estimated 35%-50% of all convenience stores in the US.

However, the Pew Research Center estimates that about 6% of the group lives below the poverty line — with the complexities of undocumented migration comprising a significant contributing factor. Approximately 14% Indian-Americans were undocumented in 2021, making them the third-largest undocumented migrant group in the country.

The report is the first volume in a series to look at the impact of the Indian diaspora, with a focus on public service, business, culture and innovation. In addition to various statistics, the project also profiles the diaspora leaders across economic and cultural areas.