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Indian-American diaspora: A vital resource for India


May 18th, 2018

The start-ups by Indian immigrants increased seven per cent over the prior period and a full 33.2 per cent of all start-up companies were founded by Indian Americans.

Over 31 million people of Indian birth or descent are part of the Indian diaspora spread around the world. Of them, 3.1 million, or 10 per cent, are Indian-Americans living in the US. 

The Indian-American diaspora has proven to be a vital resource contributing to the economic, political and social development of India.

Devesh Kapur highlighted the importance of the Indian diaspora in his classic 2010 book, “Diaspora, Democracy and Development: The Domestic Impact of International Migration from India”. Kapur’s analysis focused primarily on the period from the late 1960s until the end of the 20th century. 

Indian-American influence, impact, and contributions were significant then and have grown even more so as we move forward into the 21st century. Part of the reason for this is that the Indian-American population on average stands head and shoulders economically and educationally above those in other Asian American subgroups and the US population in general. 

A Pew Research study released in 2013 disclosed that the median annual household income for Indian Americans was $88,000 compared to $66,000 for all Asians and $49,800 for the US population. 

The study also revealed that 38 per cent of Indian-Americans held advanced degrees compared to 30 per cent for all Asian Americans and 10 per cent for the entire population.

Indian-Americans excel as high tech entrepreneurs. A study by Vivek Wadwha for the period from 2006 to 2012 showed that overall immigrant entrepreneurship “stagnated” compared to the period from 1995 to 2005. 

But start-ups by Indian immigrants increased seven per cent over the prior period and a full 33.2 per cent of all start-up companies were founded by Indian Americans. It’s not just that Indian Americans are doing well. 

They are also inclined to stay connected with India through investments, philanthropy and personal involvement. The Indian Diaspora can bring broad economic benefits to India. They can make substantial contributions in the areas of Innovation and entrepreneurship; health care; education; and skills development. 

They can help in creating jobs and in creating new companies across India. They can create a platform by sharing best practices and technology with small and medium enterprises and helping them to access financing.

In it’s 2014 paper, “The Indian Diaspora in the United States”, the Migration Policy Institute (MPI) reports that “The Indian diaspora community is noted for being very well organised and having a deep and multifaceted engagement with the homeland. Many consider giving back an obligation and a welcome responsibility. I am one of those who feel that responsibility. Through the foundation my wife Debbie and I have established, we have underwritten the building of a new management complex, Frank and Debbie Islam Management Complex, which was opened last year at my alma mater Aligarh Muslim University. We have also pledged to provide considerable financial support to develop a technical training school for women in India so that they can be empowered through higher education. Indian-Americans who want to share their success philanthropically with those in India can do so easily because of American-based groups such as AIF, Pratham U.S.A. and Ekal which provide a structured and organised approach for giving across a wide range of areas. Thanks to the work of these organisations and others, a number of high-impact initiatives have been launched in India in fields such as education, poverty alleviation and job training.”