IMPACT OF INDIAN DIASPORA OF US/UAE ON INDIAN ECONOMIC GROWTH

Abstract

This research paper explores the multifaceted contributions of the Indian diaspora to India’s economic development, highlighting their role in remittances, investments, entrepreneurship, and cultural diplomacy. As the largest recipient of remittances globally, India benefits significantly from financial inflows that support local economies and enhance foreign exchange reserves. The diaspora's involvement in critical sectors such as information technology, healthcare, real estate, and trade demonstrates their impact on India's growth and bilateral relations with host countries, particularly the UAE and the US. However, challenges such as bureaucratic hurdles, lack of reliable data, and emotional disconnection hinder the diaspora's engagement. By leveraging theories such as Network Theory and Home Bias Theory, the paper analyzes the diaspora's investment patterns and their implications for India's economic landscape. The prospects for the Indian diaspora are promising, with potential for increased investment and knowledge transfer. To maximize these benefits, effective collaboration between the Indian government and the private sector is essential. This paper concludes that addressing the challenges faced by the diaspora and fostering a supportive environment can enhance their contributions, ultimately benefiting India and its global community.

Keywords: Diaspora, Economy in India, Economic Growth, Home Bias Theory, Marxism and Realism.