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UPSC Issue at a Glance is an initiative of UPSC Essentials to focus your prelims and mains exam preparation on an issue that has been in the news. Every Thursday, cover a new topic in Q&A format. This week’s issue is focused on the Indian Diaspora. Let’s get started!
Prime Minister Narendra Modi on January 9th launched the 18th Pravasi Bharatiya Divas in Odisha and hailed India’s rapid economic development over the last 10 years. The Pravasi Bharatiya Divas is celebrated on January 9th to honor the contributions of the Overseas Indian community to the development of India. This date was chosen as the day to celebrate this occasion since it was on this day in 1915 that Mahatma Gandhi returned to India from South Africa, led India’s freedom struggle, and changed the lives of Indians forever. Since 2015, the centenary year of Gandhi’s return, the format of the event has been revised to take place once every two years. In this context, let’s understand the Indian Diaspora from a broader perspective.
The topic of the Indian diaspora is significant from multiple perspectives. It is explicitly mentioned in the syllabus for the UPSC CSE General Studies Paper II and connects closely with India’s economy and foreign policy. Additionally, the UPSC has previously asked about the economic and political influence of the Indian diaspora, particularly in the West and Southeast Asia. Questions have primarily focused on how the diaspora contributes to diplomacy, economic relations, and political influence, which in turn enhances India’s soft power on a global scale. Therefore, it is an important topic to be covered.
UPSC Syllabus:
Preliminary Examination: Current events of national and international importance
Mains Examination: General Studies-II: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
What will you learn from this article? |
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The United Nations Department of Economic and Social Affairs (UNDESA) estimated that there were 281 million international migrants, which accounts for approximately 3.5 per cent of the global population, which is an increase from 2.8 per cent in the year 2000.
Throughout history, people have been constantly migrating, and today, a record number of individuals reside in countries different from their birthplace. India is not an exception. Presently, India, with an estimated population reaching 1.4286 billion (or 142.86 crores) according to the UNFPA 2023, leads the world in emigration, with a vast Indian diaspora spread across the globe.
| What is “diaspora”? |
| The term “diaspora” comes from the Greek word “diaspeirein,” which means “dispersion.” Over time, the meaning has evolved and now generally refers to individuals or groups who share a common origin or culture but live outside their homeland for various reasons. |
The history of Indian diaspora is interesting and has grown significantly since the first group of Indians was brought to countries in the East Pacific and the Caribbean islands under the “Girmitiya” arrangement as indentured laborers. During the 19th and early 20th centuries, thousands of Indians were transported to these countries to work on plantations in British colonies facing a labor crisis following the abolition of slavery in 1833-34.
In the second wave of migration, nearly 2 million Indians moved to Singapore and Malaysia to work on farms. The third and fourth waves saw professionals migrating to Western countries and workers heading to Gulf and West Asian nations during the oil boom. Thus, we observe that the Indian diaspora has periodically spread to different regions of the world, with reasons ranging from economic to educational opportunities. Interestingly, the data of countries with the largest Indian populations also presents the diverse distribution of the Indian diaspora.
India is the origin of the largest number of international migrants in the world, touching nearly 18 million, according to the UN World Migration Report 2024.
According to India’s Ministry of Foreign Affairs, as of May 2024, approximately 35.42 million Indians were living abroad. This number comprised around 15.85 million non-resident Indians (NRIs) and nearly 19.57 million persons of Indian origin (PIOs).
Among the nations hosting the largest Indian diaspora, the United States has the highest population of Indians, totaling 5.4 million individuals. This figure represents approximately 1.6% of the country’s overall population of 345 million.
In the Middle East, nations like the UAE, Saudi Arabia, and Kuwait attract a significant number of Indian migrants because of their favorable investment climate and government policies that encourage the hiring of skilled workers.
| Rank | Country | Non-Resident Indians (NRIs) | Persons of Indian Origin (PIOs) | Overseas Indian |
| 1 | USA | 2,077,158 | 3,331,904 | 5,409,062 (5.4M) |
| 2 | UAE | 3,554,274 | 14,574 | 3,568,848 (3.6M) |
| 3 | Malaysia | 163,127 | 2,751,000 | 2,914,127 (2.9M) |
| 4 | Canada | 1,016,274 | 1,859,680 | 2,875,954 (2.8M) |
| 5 | Saudi Arabia | 2,460,603 | 2,906 | 2,463,509 (2.5M) |
| 6 | Myanmar | 2,660 | 2,000,000 | 2,002,660 (2.0M) |
| 7 | UK | 369,000 | 1,495,318 | 1,864,318 (1.9M) |
| 8 | South Africa | 60,000 | 1,640,000 | 1,700,000 (1.7M) |
| 9 | Sri Lanka | 7,500 | 1,600,000 | 1,607,500 (1.6M) |
| 10 | Kuwait | 993,284 | 2,244 | 995,528 (996K) |
(Source: Ministry of External Affairs, Government of India: Population of Overseas Indians)
Southeast and Southwest Asian countries, such as Malaysia, Myanmar, Sri Lanka, and Singapore, have some of the largest Indian populations in the world, primarily due to the economic and educational opportunities available there.
The Indian diaspora has been essential for India, contributing not only to economic growth but also to enhancing India’s global image. There is growing recognition of the important role that the diaspora can play in India’s foreign policy calculus.
Role of Indian Diaspora in India’s Economic Growth
India has the world’s largest diaspora, and is also the largest recipient of remittances. Remittances, according to the World Bank, are a vital source of household income for low- and middle-income countries like India.
India saw the highest amount of remittance inflows in the world in 2023 at USD 125 billion, driven by several factors, including the country’s agreement with the UAE, for promoting the use of dirhams and rupees for bilateral trade, the World Bank said. According to the World Bank, remittance flows to India from the United Arab Emirates, which account for 18 per cent and are the second largest source of India’s remittances after the United States. The International Organization for Migration (IOM) also reported that India has consistently remained the leading recipient of remittances globally.
The Indian diaspora contributes to the economic growth of India not only through remittances but also through various forms of investment in the Indian economy in the form of foreign portfolio investment, foreign direct investment (FDI), transfer of knowledge and entrepreneurial network.
| Classification of Overseas Indians |
| Overseas Indians are classified into three categories:
1. Non-Resident Indians: NRIs are Indians who are residents of foreign countries. Story continues below this ad 2. Persons of Indian Origin (PIOs): According to the Ministry of External Affairs, PIO refers to a foreign citizen (except a national of Pakistan, Afghanistan, Bangladesh, China, Iran, Bhutan, Sri Lanka, and Nepal) who at any time held an Indian passport, or who or either of their parents/grandparents/great-grandparents was born and permanently resided in India as defined in the Government of India Act, 1935, or who is a spouse of a citizen of India or a PIO. The PIO category was abolished in 2015 and merged with the OCI category. 3. Overseas Citizens of India (OCIs): Category of OCI was carved out in 2006. An OCI card was given to a foreign national who was eligible to be a citizen of India on January 26, 1950, was a citizen of India on or at any time after January 26, 1950, or belonged to a territory that became part of India after August 15, 1947. Minor children of such individuals, except those who were a citizen of Pakistan or Bangladesh, were also eligible for OCI cards. |
Role of Indian Diaspora in India’s Soft Diplomacy
India’s soft power plays a crucial role in its global presence, highlighting its rich culture, traditions, and values. Through cultural diplomacy, India engages with other nations, fostering relationships that extend beyond politics and economics. The Indian diaspora, too, plays a vital role in promoting our culture and values, which contributes in shaping India’s soft power globally.
Over the last decade, the Centre has made a sustained effort to connect with the Indian community overseas, with PM Narendra Modi making it a point to address a community event during each of his foreign visits. Every year, 25 lakh Indians immigrate overseas, making India the nation with the highest annual number of emigrants in the world. More often than not, the members of the diaspora act as a bridge in fostering political and economic ties with the host country.
The Indian government’s approach to engaging with the Indian diaspora focuses on two main strategies. First, it implements policies aimed at the welfare and protection of overseas Indians. Second, it encourages the diaspora to contribute to India’s growth in various ways, such as through knowledge transfer and investments, etc. Some of the key initiatives of Indian governments related to the Indian diaspora are:
| 18th Pravasi Bharatiya Divas |
| The 18th Pravasi Bharatiya Divas Convention is being organized in partnership with the State Government of Odisha from 08-10 January 2025 in Bhubaneswar. This year’s theme of Pravasi Bharatiya Divas is “Diaspora’s Contribution to a Viksit Bharat”, aimed at celebrating the bond between India and its overseas Indian community, the MEA statement said. |
1. Know India Programme (KIP): It is an initiative by the Ministry of External Affairs aimed at Indian diaspora youth aged 21 to 35 years. The primary goal of the KIP is to strengthen the connection between young people of Indian origin and their ancestral homeland by enhancing their understanding of India.
This program serves as a platform for Persons of Indian Origin (PIO) to explore contemporary India through a three-week “knowledge tourism” experience. Participants will gain exposure to various aspects of India’s growth and development. The program is open to youth of Indian origin (excluding Non-Resident Indians), with preference given to PIOs from Girmitiya countries.
2. Indian Community Welfare Fund (ICWF): The Indian Community Welfare Fund (ICWF), established in 2009, aims to assist overseas Indian nationals during times of distress and emergencies in the most deserving cases, based on a means-tested evaluation. The ICWF has also played a crucial role in the emergency evacuation of Indian nationals from conflict zones, areas affected by natural disasters, and other challenging situations. Due to its significant utility, the ICWF is now extended to all Indian Missions and Posts abroad.
3. E-Migrate: It is a comprehensive system designed to facilitate the safe and legal emigration of Indian workers. This initiative aims to make the emigration process more transparent and address various complaints effectively.
4. Inter-Governmental Labour migration Agreements: These agreements provide an overarching framework for cooperation on labor and manpower issues. They also include provisions for implementation through a Joint Working Group, where worker-related issues are discussed in periodic meetings.
5. Pravasi Bharatiya Bima Yojana (PBBY): It is an insurance scheme available to all Indian workers emigrating from India, requiring a nominal premium payment made to insurance companies.
Prelims
(1) With reference to the remittance inflows, consider the following statements:
1. India witnessed the highest amount of remittance inflows in the world in 2023.
2. It is not included in Gross National Product (GNP).
3. India’s largest source of remittance is UAE.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
(2) Consider the following statements:
1. Non-Resident Indians are Indians who are residents of foreign countries.
2. Overseas Citizens of India Category was carved out in 2006.
3. The theme of 18th Pravasi Bharatiya Divas is “Diaspora’s Contribution to a Viksit Bharat”.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
(3) With reference to the remittance flows to India, consider the following countries:
1. Singapore
2. U.A.E.
3. U.S.A.
What is the correct order of these countries in the decreasing order of their contribution to India’s remittance?
(a) 2— 1— 3
(b) 3— 2— 1
(c) 1— 2— 3
(d) 2— 3— 1
Mains
1. Indian diaspora has scaled new heights in the West. Describe its economic and political benefits for India. (UPSC CSE 2023)
2. ‘Indian diaspora has a decisive role to play in the politics and economy of America and European Countries’. Comment with examples. (UPSC CSE 2020)
3. Indian Diaspora has an important role to play in South-East Asian countries’ economy and society. Appraise the role of Indian Diaspora in South- East Asia in this context. (UPSC CSE 2017)
| Prelims Answer Key |
| 1. (a) 2. (c) 3. (b) |
(Sources: Top 10 countries with the largest Indian diaspora, Indians abroad: History, spread, remittances, World Migration Report 2024, mea.gov.in)
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