A Bigger Idea Of India – Why Indians already command economic heft of $5 trillion and how we can leverage this

Source: The post is based on the article “A Bigger Idea Of India – Why Indians already command economic heft of $5 trillion and how we can leverage this” published in The Times of India on 18th February 2023.

Syllabus: GS 2 – Indian diaspora.

Relevance: About the Indian diaspora’s wealth.

News: Indian expatriates and persons of Indian origin overseas at present amount to around 3. 2 crores. They are highly skilled and successful, and they also have an emotional attachment to any Indian cultural events occurring overseas. It is time for India to leverage this strength.

About the Indian diaspora’s economic wealth

In several countries, Indians are among the top earners. A 2012 estimate of the diaspora’s wealth was $1 trillion. At present, this wealth has increased manyfold.

The collective economic heft of Indians abroad to India’s GDP will be around $ 3. 5 trillion at the end of March. Indians already generate an economic value of well over $5 trillion.

It means that geographical India will likely have a GDP of $5 trillion by 2025. But the other India (which includes persons abroad and invested in India) is already a $5 trillion-plus powerhouse.

What are the advantages of the Indian diaspora’s wealth?

A country’s top income earners are pivotal to the country’s economic progress. For instance, they invest, they innovate, they take risks, they back new technology and also they create jobs.

Indian diaspora already sends $100 billion in remittances to India annually. This is the highest remittance figure in the world.

What should be done to completely utilise the Indian diaspora’s wealth?

In business, network effects kick in when the value of a product is intrinsically tied to the increase in the number of users. The network effect of high-earning, high-performing Indians abroad should be entirely invested in the idea of India’s progress.

In the ET Global Business Summit, PM highlighted the immense value of the Indian diaspora. It is time for business leaders and policymakers to integrate the diaspora’s economic dynamism.