A large number of Indians are choosing to leave their homeland for better opportunities abroad, but for many, it is less of a choice and more of a necessity. Indians have consistently topped the number of legal and illegal immigrants reaching the developed nations. US Customs and Border Protection data indicates a significant increase in illegal migration from India to the United States over the past two years. Even more worrying, Indians are now migrating not only to developed countries, but also to conflict-prone regions like Russia and Israel.
This alarming trend suggests that distressing domestic circumstances are driving Indians to take risks abroad, even if it means endangering their lives. In a world where labour mobility is restricted, individuals facing economic hardship at home feel compelled to seek opportunities in developed nations. This calls for urgent discussions on economic challenges and job scarcity within India. Additionally, India’s ambitious vision of becoming a developed nation by 2047 is at stake, as brain drain and migration trends threaten its economic and social objectives.
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Who is migrating from India
To understand the migration trends, it is essential to examine the profile of those leaving India and their motivations. Broadly, two types of migration are driving Indians abroad. First, skilled professionals are leaving to build better lives, motivated by prospects of higher incomes and professional growth. This category of migrants often seeks stability and better career trajectories in developed economies.
The second category includes those who migrate out of sheer desperation, driven by harsh economic circumstances. Many of these individuals are taking grave risks, even joining the ongoing Russia-Ukraine war, lured by online advertisements and middlemen promising lucrative jobs. A tragic incident recently highlighted this reality when a man from Surat was killed by a Ukrainian drone missile, exposing the grim realities behind these offers. While some argue such incidents are cases of online fraud, the reality is that many feel they have no other options despite being aware of the risks.
Regional trends and trafficking networks
Migration data reveals two notable trends. First, the majority of illegal Indian migrants intercepted at airports are men from Punjab, Haryana, and Gujarat. Second, a significant number of these individuals are unaccompanied minors. Gujarat and Punjab, in particular, report the highest numbers of illegal migrants to the United States and Canada.
The motivations for migration in these regions vary. While some migrate due to alleged religious persecution, others are driven by agricultural distress. Trafficking networks in rural Punjab and Haryana prey on individuals, convincing them of a better future in the United States or Canada. A recent incident highlighted the desperation that fuels these migrations: the death of a farmhand who had worked as an undocumented migrant in Italy. Such stories underline the dire situation in India’s agricultural sector, where declining incomes, fragmented farmlands, and soil exhaustion have pushed many to seek opportunities abroad.
Brain drain will hurt Viksit Bharat vision
On the opposite end of the migration spectrum lies India’s brain drain crisis. Highly skilled Indians are leaving for opportunities abroad, where they see substantial financial growth. According to the World Bank report Migrants, Refugees, and Societies, most Indians who settle abroad experience over a 100% income increase — a significant motivator, rarely achievable within India. Given these promising financial prospects, skilled professionals rarely return to India, even when higher salaries are offered.
This brain drain directly threatens the Viksit Bharat vision — the plan to become a developed country by 2047. As of 2023, India stands as the world’s fifth-largest economy with a GDP of over $3.7 trillion, looking to reach the $10 trillion mark by 2030. To become a developed country by 2047, India must record an annual growth rate of over 8%. The IT industry alone could contribute $1 trillion to the economy by 2030, but the ongoing exodus of talent endangers this potential.
Enhanced funding for education and research: To curb the brain drain and retain its talent, India needs to rethink its approach to education and research. Currently, India’s education spending stands at 3.1% of the GDP, below the global average of 4.9%. Increasing this investment to 5% and doubling research funding from Rs 50,000 crore to Rs 1 lakh crore can create world-class institutions capable of retaining talent. High-calibre research institutions, improved funding for R&D, and specialised programmes in tech fields could make staying in India more appealing for skilled professionals.
Expanding the startup ecosystem: India’s startup ecosystem has become a key driver of economic growth, with over 90,000 startups contributing $400 billion to the economy. However, retaining skilled talent requires further support. By doubling the Fund of Funds for Startups to Rs 20,000 crore and establishing innovation hubs in smaller cities, India can build a robust framework that reduces the lure of foreign jobs for skilled youth. This localised support can not only fuel innovation but also strengthen regional economies, creating a more balanced development landscape.
Public-private partnerships for innovation: Collaboration between public and private sectors is essential to drive innovation in fields like artificial intelligence, biotechnology, and clean energy. In 2023, India attracted $25 billion in foreign direct investment in these areas, signalling robust potential. A dedicated budget allocation of Rs 50,000 crore for public-private partnerships can ensure that India remains globally competitive and innovative, making it an attractive option for skilled professionals. Enhanced collaboration between academia and industry can also foster more hands-on, practical research that aligns with market needs.
Financial incentives for returnees: India can encourage the return of skilled professionals through targeted financial incentives. Introducing tax breaks for returning non-resident Indians and offering reduced tax rates on income from patents developed in India can be compelling incentives. For example, a 10-year tax exemption on intellectual property income could attract professionals who left for better financial prospects abroad. Such policies would not only encourage repatriation but also stimulate local innovation.
A vision for retention
For India to retain its talent and reduce migration out of desperation, government intervention is essential at multiple levels. Protocols for safe emigration, along with improved support systems for Indians facing hardship abroad, must be developed. Additionally, cracking down on exploitative middlemen and trafficking networks can help protect unskilled workers from predatory schemes.
The Union Budget 2025–26 is not just a financial plan — it is a roadmap for India’s future. Addressing brain drain is not only about preventing people from leaving; it is about creating an environment where talent can thrive. If India can foster a culture of innovation, invest in education, and provide financial incentives, it can better retain its talent and attract those who have left, thus aligning with its vision of a Viksit Bharat by 2047. Only through comprehensive policies can India ensure that its citizens are empowered to build prosperous lives within its borders rather than seeking solace in uncertain prospects abroad.