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The Indian diaspora and the economic development of India

Due to its colonial history and history of integration into global markets, Indians have been migrating around the world for centuries. Today, twenty million Indians live outside of India (GOI 2000). They span a wide range of backgrounds, occupations, and histories, from construction workers in the Middle East and taxi drivers in New Jersey to bankers in Latin America and European entrepreneurs in tech. Information Technology (IT) of Silicon Valley. Given the size and diversity of the Indian community, it is surprising how little we know about their activities and impact on the country of origin. This article examines how Indian immigration to the United States has influenced development in India. Development is broadly defined to include policies and practices aimed at improving welfare in the socio-economic and political spheres. Surveys have shown that nearly 95% of Indians abroad send money to family or close friends to support their education, health or other personal concerns in their homeland. For many years, India was the largest recipient of remittances, estimated at US$54 billion per year (World Bank 2009).

Nearly 30% of these remittances come from the Middle East (where most Indians are manual workers) and 40% from North America (where the majority are professionals and technicians) (Reserve Bank of India). 2010 ). In this chapter, I examine the relationships that American Indians forge through transnational organizations. Unlike individual remittances, US-based organizations founded and operated by Indian-Americans create formal and lasting relationships with institutions in the country of origin.

History of the Indian diaspora and the Indian government

Before the mid-1980s, the relationship of the Indian community with the homeland was very weak. Under British rule, overseas Indians were seen as the main workforce serving the British Empire. In 1947, India's newly independent government pushed back against the diaspora by using the state's physical borders to define the vague boundaries of national identity. Only those residing within the country's borders are considered "Indians". This message was meant to protect the hundreds of thousands of new migrants who left present-day Pakistan for present-day India and were suspected of sharing independence.

Since the mid-1980s, the government of India and the diaspora have changed their views towards each other. In the United States, for example, there has been an increase in the number of organizations where Indian immigrants have begun to promote ties with their country of origin. At the same time, the Indian government has introduced new policies and institutions to strengthen ties with the expat community. In the mid-1980s, he created new bank accounts that allowed non-resident Indians (NRIs) to invest in their country. In 1999, it launched two new Visa Status Cards for persons of Indian Origin (PIO) and Overseas Citizens of India (OCI), facilitating migrants to travel within and outside India. India, invest in real estate and keep bank accounts in rupees.

In 2000, the Indian government authorized a high-level committee to write a report on the diaspora. Based on this report, in January 2003 the government inaugurated the first annual India Abroad conference, called Pravasi Bharatiya Divas (PVD) or India Abroad Day. The day of the conference, 9 January, commemorates the day Mahatma Gandhi (perhaps India's most famous immigrant) returned from South Africa to launch the independence movement. PVD conference facilitates networking opportunities between migrants, Indian government and Indian organisations; commemorating migrants who have contributed to the development of the country; and communicate new policies for expats, such as a recent bill that would allow overseas Indians to vote in their home countries. Finally, in 2005, India became one of the few countries to establish a cabinet-level Ministry of Overseas Indian Affairs (MOIA).

The role of the Indian diaspora in the economic development of India

Migrants make a huge contribution to the Indian economy. They help to increase foreign currency reserves, international relations (economic and non-economic) with the host country, remittances, donations to charitable activities, etc. The immigrant Indian community has provided multi-level benefits to the IT industry in terms of advanced skills; capital formation (human, social and financial); incoming deposit; foreign direct investment (FDI) inflows; network/market and promote India's image. India has a very large production age, but the under-utilization of this group of producers in the country now looks like a burden on the country. Currently, it is found that many groups of productive people are looking for work abroad because they cannot get job opportunities in their home country. Education-induced unemployment is found in both rural and urban areas. Hence, migration from India reduces the unemployment burden and remittances sent from them increase aggregate demand and gross national product. Migrants contribute to human capital building by transferring knowledge from host countries.

India was the world's largest remittance recipient in 2016, receiving $62.7 billion. According to RBI data 2016-2017, remittances to India are transferred mainly through private sector banks (74.2%), followed by public sector banks (17.3%) and banks foreign countries (8.5%). The majority of remittances originate from the United Arab Emirates (26.9%), followed by the United States (22.9%), Saudi Arabia (11.6%), Qatar (6.5%) ), Kuwait (5.5%) and Oman (3.0%). The rest of the remittances come from the rest of these states. The state of Kerala received the highest proportion of remittances (19.0%), followed by Maharashtra (16.7%), Karnataka (15.0%) and Tamil Nadu (8.0%). According to this survey, 59.2% of remittances are sent to support family or consumption. Therefore, the higher quantity for consumption purposes helps to increase the general demand in our country. In addition, 8.3% of remittances were used to invest in real estate, stocks and equity. Therefore, along with consumption expenditure, investment spending also contributes to the increase of national income through the multiplier effect of investment.

Many transnational organizations are using the wealth of the expat community to raise funds for existing organizations in India. For example, Indian college alumni organizations raise funds from members of the expat community to support their alma mater, using US university activities as a model. The Government of India has supported these efforts by offering incentives for professors and PhD students in the United States to teach in India. Building "world-class universities" has now become a central part of India's economic growth strategy. Professional associations (including doctors, entrepreneurs, and hoteliers) are increasingly trying to form partnerships with organizations to transfer knowledge from the United States to their home countries. The government has attempted to facilitate these business partnerships by supporting software engineering parks and research and development centers.

Religious organizations regularly raise funds for religious organizations (ashrams, gurus or diocese) or movements in India. Many have considered the efforts of the Sikh diaspora to raise funds during the 1980s to support the separatist movement for Khalistan, the home country of the Sikhs. This theme re-emerged in the 1990s, highlighting Hindu community support for Hindu nationalist movements and political parties in India. Unlike other transnational organizations, religious groups are able to overcome suspicions of non-governmental organizations (NGOs) and access American Indian wealth in the form of donations. Indian religious organizations in the United States are large and most enjoy substantial budgets. In my interviews, funding is rarely mentioned as a major challenge.

Many development organizations in the US have simply started raising funds from foreigners to support the parent organization in India. In most cases, the organization is well known in India and has considerable capacity. However, Indian NGOs have had to look for other sources of funding as bilateral and multilateral aid to India has dwindled. As a result, the growing number of “high net worth” Indians in the United States has become an important source of alternative funding for Indian NGOs. In these cases, the American organization acts as the “little brother” and is rarely the source of new ideas or strategic visions. The diaspora is used for its own money, but it does not affect the direction of development in the country much.