Indian Emigrants: Numbers, Characteristics, and Economic Impact

• Published in: Population and development review 1985-09, Vol.11 (3), p.457-481
• Main Author: Madhavan, M. C.
• Format: Article
• Language: English
• Subjects: Balance of payments; Bank accounts; Brain Drain; Countries; Developing countries; Economic conditions; Emigrant remittances; Emigration; Immigration and emigration; India; Indian; International cooperation; International migration; Labor migration; Population estimates; Statistics; Unemployment; Workforce
• ISSN: 0098-7921; 1728-4457
• DOI: 10.2307/1973248

As of 1981 between 5.0 and 5.5 million persons born in India were living abroad, about 0.7 to 0.8 percent of the Indian population. Nearly 85 percent of Indian emigrants have settled in developing countries, with 15 percent choosing developed regions. Highly qualified professionals constitute 50 percent of the total flow to developed countries, compared with only 10 percent to developing countries. The major cause of emigration seems to be the wage differential between India and the immigrant-receiving countries. Although emigration on the whole seems to have benefited India in the short term, particularly in relieving the pressure of unemployment, the long-term cost to Indian society of this "skill drain" is likely to be substantial since the highly trained emigrants represent the elite human resources that are essential for the country's continued development. On the other hand, emigrants' remittances and their deposits held in Indian-owned banks have significantly improved India's balance-of-payments position.