Brain Gain in Indian context

Previously we discussed about the concept of Brain Gain along with an example which I said would be discussing it to a greater de...

Previously we discussed about the concept of Brain Gain along with an example which I said would be discussing it to a greater depth in my next section, so, here I am to give you some more content on Brain Gain in Indian context….

A number of developments since the liberalization of the Indian economy in 1991 have led to a gradual increase in India’s ‘reverse diaspora’ or ‘brain gain’. There was a slow and steady increase in foreign direct investment and the establishment of offices by multinational firms in India. To encourage remittances from Indian citizens who resided abroad (NRIs), the Government of India passed new legislations and introduced new tax rules. 

Restrictions related to visas, investment and the purchases of property by NRIs were relaxed. Overseas citizenship of India was instituted for those Indians who held the citizenship of another country. Those who obtained the overseas citizenship had the same rights as Indian citizens except the right to vote, to stand for public office and to purchase agricultural land. Large numbers of Indians who went to the US in 1999-2000 returned after the dot com bust programme. Following the 9/11 attacks on the World Trade Centre in New York, US visa requirements became more stringent.

In the 1990s, Fortune 500 companies and multinational technology corporations turned to India for software programming and development call centres and back office operations. MNCs like Siemens, Larsen, and Toubro and Motorola recruited NRIs in their branches in India. Other MNCs like Microsoft corp. Dell Inc. and General Electric increased their operations in India. The Indian IT giants like Tata Consultancy Services, Infosys, Wipro and Satyam increased their operations in India and abroad. There was a slump in the IT industry in the US between 2000 and 2004 which forced a large number of Indian professionals to return to India.

During 2000 and 2004, some 25,000 IT professionals returned to India. These returnees brought with them valuable work experience, entrepreneurial skills, access to global networks and venture capital. By several estimates, between 50,000 and 60,000 IT professionals alone have returned to India from overseas since 2003. Most of them have settled in the suburbs of Bangalore, Hyderabad, and Delhi. The returnees are employed mainly in the IT, biotechnology research and business sectors. These cities offer them career opportunities and familiar western style work environments in their technology, business and industrial parks, research institutions and multinational firms. 

The IT cities of India offer them high standard of living comparable with that in the US and greater opportunities for advancement. Many wan t to be closer to aging parents. Bangalore has more than 1,000 IT firms and 10,000 US dollar millionaires. It boasts of more than 1,60,000 technology workers compared with about 1,75,000 in Silicon Valley. Large numbers of the middle and top level professionals have been transplanted from Silicon Valley.

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For more information click on Diaspora, Brain Gain, Brain Drain in Indian Context, Brain Drain,  Brain Exchange, Brain Waste, Brain Circulation, Indian Diaspora, New Indian Diaspora, Old Indian Diaspora

Reference:

• Ajaya Kumar Sahoo and Laxmi Narayan Kadekar (edited), Global Indian Diaspora: History, Culture and Identity.

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Related Questions:

Understanding concept of Brain Gain in Indian Context.

A brief statistical analysis of Indian Brain Gain.

Reasons for Indian Brain Gain.

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