The Diaspora Serves as a Brain Bank

Chief Economic Adviser V Anantha Nageswaran speaks to Parth Singh about why Indians leaving the country to work abroad should not be seen as brain drain. Edited excerpts:

- Parth Singh

What can the government do to get start-ups that moved their headquarters abroad back?

Many businesses that once relocated [to other countries] for tax purposes have now moved back. We noted this trend in the January 2023 Economic Survey. Today it is no longer a major concern as we have seen reverse migration of businesses happening to India.

Regarding the global economic order, long-standing assumptions such as free trade, unrestricted capital flows and absence of industrial policy are making way for more pragmatic, context-driven approaches in developed economies. Previously, when such policies were followed, India’s economic size and influence were relatively smaller.

Now, with developed nations shifting away from their earlier stance and India’s economic strength growing, the country has a chance to shape global policy narratives—not just for itself but also for the broader developing world.

However, India’s unique position, with its scale, democratic framework and federal structure, makes this task more complex. The country must carve out a policy path suited to its distinct needs.

China is trying to get its own talent back. Should India try something similar?