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US policy wise : Visa, Free Trade and WTO

Can diaspora please stand up

Introduction

The Indian-American diaspora is often hailed as one of the most successful immigrant groups in the United States, with the highest median household income among all ethnicities, six Fortune 500 CEOs, governors, Congress members, and leaders in federal agencies like the CDC and FBI. However, recent U.S. policy shifts, such as increased tariffs on Indian goods, restrictions on H-1B visas, and sanctions affecting India’s strategic infrastructure, have highlighted the limits of diaspora influence. Despite its success, the community faces a pressing question: will it remain silent, or rise to defend India’s interests when challenged abroad?

Why is this in the news?

In recent months, the Trump administration unleashed a series of punitive measures: slapping 50% tariffs on Indian goods, imposing a $100,000 fee on H-1B visa applications (of which Indians receive 70%), restricting student visas, and sanctioning India’s strategic infrastructure projects like the Chabahar port. These measures directly affect Indian professionals, businesses, and students in the U.S. Surprisingly, the celebrated Indian-American diaspora has responded with muted or absent voices, raising serious concerns about the costs of silence. This marks a sharp contrast: while India has celebrated its diaspora as “soft power champions,” their political engagement on issues of consequence appears weak.

What makes the Indian-American diaspora so influential?

  1. High economic success: Highest median household income among ethnic groups, concentration of CEOs, professionals, and leaders in U.S. politics and administration.
  2. Symbol of integration: From Bollywood films to biryani, diaspora blends nostalgia with modern influence.
  3. Strategic assets: Strong presence in STEM, academia, corporate America, and policymaking.

Why is the diaspora silent on anti-India measures?

  1. Fear of backlash: Second-generation Indian-Americans feel their American identity questioned if they oppose U.S. policy too strongly.
  2. Fragmentation: Divided by region, religion, political orientation; no unified lobbying voice.
  3. Political caution: Many supported Trump for pro-business stance or Hindu nationalist sentiment but hesitated to confront his administration.
  4. Practical concerns: Rising costs for H-1B visas, employment restrictions on STEM graduates, yet little public opposition.

What are the consequences of this silence?

  1. Weakening of India’s strategic position: If diaspora fails to defend against hostile U.S. measures, it undermines India’s global partnerships.
  2. Loss of moral voice: Diaspora loses legitimacy as defenders of India’s interests.
  3. Encouragement of further punitive actions: Silence signals complicity, emboldening further sanctions and restrictions.
  4. Cultural reductionism: Diaspora risks being seen as only symbolic carriers of Bollywood, biryani, and Bharatanatyam rather than political actors.

What should be the role of the diaspora?

  1. Bridge-builder: Act as advocates for India when U.S. policies hurt strategic ties.
  2. Political engagement: Use lobbying capacity, financial resources, and media influence to defend India’s interests.
  3. Principled advocacy: Support India not just through nostalgia or identity politics but through substantive action.
  4. Moral responsibility: As beneficiaries of U.S. democracy, they must speak truth to power, not remain bystanders.

Conclusion

The Indian-American diaspora stands at a crossroads: to remain silent and symbolic or to act as a true strategic partner for India. Its wealth, numbers, and influence offer immense potential to shape narratives in Washington, but silence risks rendering it irrelevant. For India, the diaspora must be more than a cultural soft-power asset, it must become a political and moral force that safeguards India’s interests globally.

PYQ Relevance

[UPSC 2020] Indian diaspora has a decisive role to play in the politics and economy of America and European Countries. Comment with examples.

Linkage: The article highlights how the Indian-American diaspora, despite its economic and political clout, has remained largely silent on hostile U.S. measures like tariffs and H-1B restrictions. This directly links to the PYQ as it shows both the potential role of diaspora in shaping politics and economy abroad, and the limits of its current influence when it fails to actively advocate for India.

Value Addition

Size and Spread

  1. Largest diaspora in the world – 18 million (UN DESA, 2021).
  2. Major hubs – USA (4.8 mn), UAE (3.5 mn), Saudi Arabia (2.5 mn), UK (1.6 mn), Canada (1.7 mn), Australia (0.7 mn).

Economic Role

  1. Remittances – India received $125 billion in 2023 (World Bank), highest globally.
  2. Investment channels – NRI deposits (over $141 billion in Indian banks).
  3. Entrepreneurship – Indian-Americans own ~80,000 businesses in the US, employing ~200,000 people.

Diplomatic and Strategic Role

  1. Lobbying in the US – India Caucus in US Congress, among the largest country caucuses.
  2. Strengthening bilateral ties – Diaspora played a role in the US–India nuclear deal (2008).
  3. Community mobilisation – Helped India’s COVID-19 vaccine diplomacy; strong mobilisation for relief during natural disasters (Kerala floods, Nepal earthquake).

Cultural and Soft Power Influence

  1. Bollywood & cuisine – Bollywood films rank in top 10 foreign releases in Gulf and US theatres; Indian food chains like Patel Brothers in US are cultural hubs.
  2. International Day of Yoga (21st June) – Promoted by diaspora across 170+ countries.
  3. Cricket diplomacy – Popularised Indian Premier League abroad; diaspora support in stadiums gives visibility.

Challenges and Criticism

  1. Brain drain vs. brain gain – Loss of skilled talent, though remittances compensate.
  2. Fragmentation – Religious, regional, and political divides weaken unified lobbying.
  3. Political caution – Reluctance to challenge host-country policies that hurt India.
  4. Exploitation in Gulf – Migrant workers face poor labour conditions and weak legal recourse.

Initiatives by India

  1. Pravasi Bharatiya Divas (PBD) – Celebrated biennially since 2003.
  2. Overseas Citizenship of India (OCI) – Allows lifelong visa, parity with NRIs in most fields (except politics & purchase of agricultural land).
  3. Scholarship Program for Diaspora Children (SPDC) – Assists NRI/PIO children studying in India.
  4. Madad Portal & e-Migrate – For welfare and grievance redressal of emigrants.

Comparative Diaspora Roles in Other Countries

  1. China – Chinese diaspora heavily invests in home-country infrastructure, strong lobbying in US.
  2. Israel – Jewish diaspora played a decisive role in US foreign policy.
  3. Ireland – Irish-American lobby influenced US policy on Northern Ireland.

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