Topic 18 of 20
Opinion Brain Drain and Diaspora Policy Talent export as economic necessity versus brain circulation and the domestic conditions for retaining skilled Indians amid rising curbs on migration

Exporting Talent Is a Necessity, Not a Strategy

Source Indian Express, Open Magazine, Fair Report Daily, Civils Daily, The National, GK Today, The Hindu, Testbook, Ministry of External Affairs, The Wire, Trends Group, IIM Bangalore, Hindustan Herald, Slid

Between 1834 and the end of indenture in 1917-1920, an estimated 1.3 to 1.5 million Indians were shipped abroad as indentured labour. Two centuries later, India still sends its workers abroad in large numbers, this time through state-negotiated visas and mobility agreements. The method has changed, but the underlying reason, a shortage of opportunity at home, has not changed as much.

Summary

In an Indian Express op-ed on 17 October 2026, Sanjaya Baru responds to two recent remarks. US Vice President J.D. Vance described Indian H-1B workers as indentured servants, which the MEA rejected as deeply offensive. Commerce Minister Piyush Goyal welcomed tighter US visa rules as a check on brain drain.

Baru argues that both sides were selective with the truth: American firms have benefited from Indian talent and Indian governments, including the present one, have long pressed for more visas. Drawing on his book "Secession of the Successful", he traces a line from colonial indenture to today's state-brokered labour mobility, argues that India exports talent because it cannot create enough jobs at home and warns that skilled Indians are becoming "never-returning Indians".

He says retaining and attracting talent requires changes at home.

WHY IT MATTERS FOR UPSC & STATE PCS

A US Vice President's remark describing Indian H-1B workers as indentured servants, the MEA's rebuttal and the Commerce Minister's comments on brain drain followed a US suspension of several firms from the green-card process. Together they have reopened the debate over whether India's long reliance on exporting labour and talent reflects success or a shortage of domestic opportunity.

Standard News

Exporting Talent Is a Necessity, Not a Strategy

TAN's position is straightforward. India's long practice of sending its workers abroad, from indentured labourers to H-1B engineers, has mainly reflected a shortage of opportunity at home. It should be managed carefully, but it should not be celebrated as national strategy. With other countries tightening their migration rules, India cannot rely on it either.

The Reasoning Under

British rule, an estimated 1.3 to 1.5 million Indians were shipped abroad as indentured labourers between 1834 and 1917-1920. They were known as girmitiyas, after the "agreement" they signed. They left because colonial India offered them little at home.

After Independence, the forms changed: professionals to the West, workers to the Gulf and now government-negotiated mobility agreements, such as the November 2023 framework with Israel and the February 2024 MoU with Taiwan.

India has also long sought multilateral rules under WTO Mode 4 for the temporary movement of service professionals. The main reason has remained the same. India has not created enough good jobs at home for the workers it produces.

When a young, underemployed country meets ageing economies that need workers, migration follows. That is a necessity. Calling it a strategy confuses a response to a gap with a plan to close it.

The Strongest Counter-Argument

The case on the other side is strong. In this view, emigration is not a loss but brain circulation. Scholars such as Devesh Kapur argue that skilled emigrants link India to global knowledge, capital and markets and that returnees and diaspora networks have helped build India's technology sector.

The numbers support part of this: India received a record $135 billion in remittances in FY25, a major support for its foreign exchange reserves. On this view, Indians abroad are a national asset and treating them as a loss misunderstands their value.

Why the Position Still Holds

That argument is correct about remittances and networks, but it does not answer the question Commerce Minister Piyush Goyal himself raised: what would have happened if these professionals had built their firms and research in India?

Remittances largely fund household consumption and add to reserves. They do not build research laboratories, universities or companies in India. Brain circulation also depends on people returning. Over 18.8 lakh Indians renounced their citizenship between 2011 and 2023, which suggests many are leaving for good.

And the circulation channel is controlled by other governments. The US suspension of firms from its green-card process in October 2026 shows how quickly that access can be restricted.

Remittances show what Indians earn abroad. They do not show what India could have built if those people had stayed. Retaining and attracting talent therefore requires changes at home: more research funding and autonomy, simpler regulation and jobs that match the skills India produces. Baru goes further and blames the government's political instincts for discouraging returnees. One need not accept that criticism to accept his main conclusion: the best answer to foreign visa curbs is a stronger domestic economy that gives skilled Indians good reasons to stay or return.

Quick Facts

Key numbers & takeaways — revise these first

  • The indenture system began in 1834 with emigration to Mauritius and was abolished between 1917 and 1920.

  • An estimated 1.3 to 1.5 million Indians emigrated as indentured labourers.

  • "Girmitiya" comes from "girmit", a corruption of the English word "agreement".

  • Mode 4 under the WTO's General Agreement on Trade in Services covers the temporary movement of service-providing professionals across borders.

  • India signed a framework agreement on labour mobility with Israel in November 2023 and an MoU with Taiwan on 16 February 2024.

  • India received a record $135 billion in remittances in FY25.

  • Over 18.8 lakh Indians renounced their citizenship between 2011 and 2023.

  • In October 2026, the US suspended several firms, including Indian IT companies, from the PERM green-card certification programme.

  • Sanjaya Baru is the author of "Secession of the Successful: The Flight Out of New India".

Beyond The Headlines
Opinion Talent export as economic necessity versus brain circulation and the domestic conditions for retaining skilled Indians amid rising curbs on migration

Connect the dots for your UPSC preparation.

Standard news covers the event. Log in to read our comprehensive analysis and uncover the hidden constitutional, structural, and ethical dimensions of this topic:

1

The full reasoning that connects indenture, Gulf migration and modern mobility pacts to a persistent shortage of domestic jobs

2

The strongest version of the brain-circulation argument, including Kapur's diaspora thesis and the $135 billion remittance figure

3

Why remittances cannot answer the question Goyal himself raised and what citizenship renunciation figures suggest about return migration

4

A focused agenda for retaining talent through research autonomy, regulation and jobs, distinguished from the more political parts of Baru's critique

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