Recent derogatory remarks by President Donald Trump have reignited a familiar debate about the role of non-resident Indians—not just in the United States, but across much of the Western world. These remarks are not isolated; they reflect a broader shift in how the Indian diaspora is perceived amid changing political and economic currents.
The Indian diaspora’s journey is one of remarkable transformation. Once burdened by the hardships of migration—securing documents, finding work, and gaining social acceptance—it has evolved into one of the most dynamic and influential global communities. Today, the diaspora shapes economies, institutions, politics, and science and technology across the globe, marking a decisive shift from employment seekers to employment providers, and from subsistence to wealth creation in the country where they reside.
Nowhere is this phenomenon more evident than in the United States, home to around five million Indian Americans. Though they constitute 1.5% of the population, their economic footprint is both disproportionate and consequential. Concentrated in high-value sectors such as information technology, healthcare, research, and entrepreneurship, Indian-origin professionals play a pivotal role in driving productivity, innovation, and job creation. Individuals of Indian origin lead around 11 Fortune 500 companies, including Microsoft, Google, and Adobe; head premier universities; and spearhead science and technology, including space organisations such as Nasa.
They occupy pivotal roles in global institutions such as the World Bank and the IMF. The technology sector, which contributes about 10% to U.S. GDP, has an Indian-origin presence that accounts for 15–20% of the core technical workforce. In healthcare, one in seven physicians is of Indian origin. Indian students, who account for about 25% of international enrolments, contribute $10–12 billion annually and support STEM research.
Unlike the diaspora in West Asia, Indian Americans invest most of their earnings in America. Besides housing, the diaspora also owns budget hotels, retail franchises, and high-growth startups, which have a multiplier effect on the economy. Apart from contributing to the growth of multinational companies that create millions of jobs, the Indian-American entrepreneurs have created approximately 425,000 direct jobs for American workers from all backgrounds. This is contrary to the accusations of displacing domestic workers or of benefiting disproportionately from visa regimes—particularly the H-1B programme.
This rise is neither accidental nor preferential. It is rooted in educational attainment, talent, professional resilience, and unique ability to adapt across cultures. Yet, this very success has also bred anxiety. Visible expressions of Indian cultural identities are sometimes viewed as unfamiliar or even incompatible with Western social norms. The growing assertiveness of sections of the Indian/ Hindu communities—long perceived as quiet and accommodating—is increasingly met with suspicion. Social conflicts within India are often interpreted through this lens, while debates on religion, caste, and interfaith relations tend to reinforce these perceptions.
Even the political mobilisation of the diaspora is, at times, viewed through the prism of identity politics—if not as interference in host countries’ domestic affairs. In some instances, such narratives are amplified by groups and external actors whose interests are not aligned with India’s.
These anxieties are also rooted in deeper structural shifts. Demographic change, economic insecurity, and concerns over social mobility have reshaped political discourse in America and many Western societies. The proportion of the white population in America has declined from about 76% in 1990 to nearly 57% today, coupled with stagnant upward mobility and consequent economic insecurities. The growing inequalities have added to their woes. As argued by Joseph Stiglitz, Nobel laureate in Economics, economic liberalisation and globalisation have driven higher inequality. Compounded by constant wars, America has greater inequality than many Western nations.
Economic inequalities among working-class Americans are a key driver of the House Freedom Caucus’s hardline immigration stance. Comprising around 30–35 conservative lawmakers, the group highlights the negative impact of high immigration — especially skilled visas like H-1B — on American wages and jobs. They attribute these challenges to globalisation, unfair trade deals, and multinational corporations’ exploitation, including a preference for cheap foreign labour. The MAGA movement and “America First” economic nationalism are rooted in this perspective.
At the same time, the Indian diaspora’s rise has added a geopolitical dimension to these perceptions. India’s expanding global influence, soft power through cultural exports such as Yoga, Holi, Diwali, and cinema, the growing visibility of Indian-origin leaders worldwide, the lure of India’s vast market, and its independent foreign policy collectively embody India’s ascent on the world stage. Long before figures like Kamala Harris, Zohran Mamdani, and Rishi Sunak, leaders of Indian origin had already held top offices in countries such as Singapore, Mauritius, Guyana, and Trinidad and Tobago.
Western political and economic models face growing scrutiny over perceived democratic and governance double standards, eroding trust in their institutional and democratic credibility. In contrast, despite its many complexities and challenges, India is increasingly perceived as a resilient democracy marked by diversity and pluralism.
What, then, is the way forward?
Such sentiments are spreading globally and, if unaddressed, could weaken both the diaspora’s standing and India’s global economic linkages. The task ahead for India is not merely to defend the diaspora’s success, but to shape its narrative—with clarity, confidence, and credibility.
First, there is a need to articulate a clear, evidence-based narrative of the diaspora’s contributions as a net contributor to growth, innovation, and social stability. Second, legitimate concerns about visa regimes and labour market distortions must be addressed transparently to prevent their politicisation. Third, sustained and strategic engagement with policymakers, the media, and civil society groups — including members of the Freedom Caucus — is essential to counter misinformation, address legitimate concerns, and build long-term trust. Younger Indian-American political leaders, particularly those active at the grassroots level, should be encouraged and supported to take the lead in this outreach.
Equally important is the need for greater internal coherence within the diaspora. Mobilisation along narrow religious or regional lines, or the export of India’s domestic political disputes abroad, risks reinforcing negative stereotypes and alienating host societies. Indian missions should therefore actively promote broad-based, inclusive platforms that celebrate diversity while fostering meaningful engagement with native communities. IndoNord, a pan-Norwegian Indian diaspora organisation that unites diverse Indian-origin groups and is gaining popularity among Norwegians, serves as an excellent model.
At the same time, India must craft a more coherent strategy to attract the Indian diaspora—not as a source of capital, but as a reservoir of knowledge, innovation, and global experience. More importantly, India must safeguard the very values that have underpinned its global rise.
Disclaimer
Views expressed above are the author’s own.
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