During his visit to the United States last year, Prime Minister Narendra Modi addressed a massive gathering of the NRIs at Nassau Coliseum in New York. With a blend of pride and patriotism, he stated, “For the world, AI means artificial intelligence, but for me, AI also means American-Indian spirit. This is the new ‘AI’ power of the world. I salute the Indian diaspora here.” His words resonated deeply, symbolizing the increasing influence of the Indian community abroad.
The event also cast a spotlight on prominent leaders of Indian origin in the US, such as Kamala Harris, Usha Vance, Vivek Ramaswamy, and Kash Patel. These leaders, alongside countless others, exemplify the remarkable success story of the Indian-American community.
The Hard and Soft Power of NRIs
For decades, the Non-Resident Indians (NRIs) and people of Indian origin have been celebrated as India’s soft power — representing cultural influence, intellectual contribution, and global goodwill. However, a significant shift is underway. Increasingly, the Indian diaspora is becoming a source of India’s hard power — contributing substantial financial strength.
According to a recent analysis by the Reserve Bank of India (RBI), the share of inward remittances from advanced economies like the US, the UK, Singapore, Canada, and Australia has surpassed that of the Gulf countries. In the fiscal year 2023-24, India’s remittances skyrocketed to $118.7 billion, more than doubling from $55.6 billion in 2010-11.
These remittances are not just a testament to the community’s success but a crucial factor in stabilizing India’s economy, financing nearly half of the country’s merchandise trade deficit. They also act as shock absorbers in times of economic crises.
The Rise of the White-Collar NRI
The Gulf Cooperation Council (GCC) countries, primarily hosting Indian blue-collar workers, have traditionally been the largest source of remittances. However, the latest data from the RBI reveals a shift. The advanced economies now account for more than half of India’s remittance inflows.
NRIs in the US, despite being fewer than their counterparts in the UAE, contribute the most to India’s remittances, owing to their white-collar, high-paying jobs. From IT professionals to healthcare workers and finance experts, Indian-Americans are excelling in various sectors, generating wealth not just for themselves but also for India.
The Astounding Success of Indian-Americans
A report by BCG and Indiaspora highlighted the impressive economic power of the Indian diaspora in the US. Despite representing just 1.5% of the US population, they contribute 5-6% of its taxes, with a median household income of $136,000 — nearly double the US average.
NRIs in the US have made their mark across industries: one in ten doctors in the US is of Indian origin, and 60% of US hotels are owned by members of the diaspora. The entrepreneurial spirit of this community has resulted in a substantial number of Indian-origin CEOs leading Fortune 500 companies.
The Impact Beyond Remittances
The influence of NRIs extends beyond monetary contributions. They play a pivotal role in shaping policy, technology, and innovation. Nearly 40% of Silicon Valley CEOs or founders are of Indian origin, significantly impacting the global technology landscape.
Harbir K Bhatia, CEO of the Silicon Valley Central Chamber of Commerce, emphasized this impact, stating, “Indians are among the biggest leaders of innovation in Silicon Valley. The tech industry here wouldn’t be the same without them.”
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