Attracting Talent Positioned Abroad

Syllabus: GS3/ Economy

Context

• Recent tightening of U.S. immigration policy has created uncertainty for highly skilled foreign workers, prompting the government to attract its global talent back through targeted initiatives and better opportunities.

India’s Dominance in High-Skill Migration to the U.S.

• Indian nationals accounted for nearly 71% of H-1B approvals in FY2024, reflecting overwhelming dependence on this channel for high-skill mobility.
• A large proportion of beneficiaries possess advanced degrees, indicating that migration involves highly trained human capital.
• The share of master’s degree holders has steadily increased over the decades, demonstrating the rising knowledge intensity of Indian migration.
• Concentration in sectors such as information technology, finance, engineering, and research makes Indian professionals central to U.S. innovation systems.

Emerging Reverse Migration Trends

• Rising visa costs and uncertainty surrounding the H-1B programme have led many skilled Indians to reconsider long-term settlement abroad.
• Reduced research funding, scholarships, and hiring support at several foreign universities have weakened traditional pathways for overseas academic and professional careers.
• Indian graduates from elite international institutions are increasingly exploring employment opportunities within India due to improving domestic prospects.
• Expanding opportunities in India’s technology sector, startup ecosystem, and Global Capability Centres are making return migration more attractive than before.

India’s Innovation Ecosystem

• Strengths:
  • India hosts over 1,600 Global Capability Centres employing millions of professionals.
  • The startup ecosystem is among the world’s largest and continues to expand across sectors.
  • Digital public infrastructure and a large domestic market create fertile ground for innovation.
• Weakness:
  • India’s R&D expenditure remains around 0.64% of GDP, far below the U.S. (3.47%), China (2.41%), and Israel (5.71%).
  • Private sector participation in research funding is limited.
  • High-technology manufacturing and deep-tech sectors remain underdeveloped.
  • Weak industry-academia collaboration constrains commercialization of research.

Government Initiatives to Re-engage Overseas Talent

• Global Access to Talent from India (GATI) seeks to facilitate international mobility, collaboration, and skill exchange.
• eMigrate V2.0 aims to create a digital ecosystem for monitoring overseas employment and protecting migrant workers.
• The VAJRA (Visiting Advanced Joint Research) scheme is a fellowship program that offers short-term positions for overseas scientists, including Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs), to work in Indian research institutions. 
• Know India Programme strengthens engagement with diaspora youth and encourages long-term connection with India’s development trajectory.
• SWADES (Skilled Workers Arrival Database for Employment Support): The initiative aims to create a database of qualified citizens returning from abroad.
  • It maps the skills of returning talent to fill vacancies in Indian and foreign companies operating within India.

Way Ahead

• Global visa uncertainty has created a rare strategic window for India to reclaim its highly skilled diaspora. However, attracting talent is only the first step. Long-term retention requires improvements in urban livability, research opportunities, and economic dynamism. 
• If supported by comprehensive reforms, returning professionals can accelerate India’s transition to an innovation-driven economy. Otherwise, the opportunity may dissipate as talent seeks alternative destinations, perpetuating the cycle of brain drain.

Source: TH