According to the United Nations Human Development Report 2000, India suffers a loss of USD 2 billion annually due to brain drain. Currently there are 25 million people of Indian origin living overseas. However the tide is turning.

There have been radical changes in the past five years. A large number of Non Resident Indians (NRIs) are coming back to settle down in India. Institutions like The Indian Institute of Technology (IIT), one of the most prestigious institutes in India reports a lack of interest among Indian students to go offshore post studies. According to V Kalyanaraman, Dean of the Centre for Industrial Consultancy and Sponsored Research at IIT, there has been a 40 percent reduction in the number of students who go abroad for higher studies.

Current scenario

An estimated 35,000 NRIs have settled down in Bangalore (a city in the southern part of India – also known as the Silicon Valley of India) and the number is steadily rising. Bangalore seems like a good destination for NRIs in terms of real estate and education standards, the fact that it is an IT hub is an added advantage for the IT professionals who decided to move back. Overall there is a steady inflow of NRIs across the country. People who would never think of returning back to India, are coming back to ride the wave of economic boom.

Interestingly it is not just the NRIs who are focusing their sights towards India; there are many European and American students who are coming down through exchange programs in order to gain valuable work experience. Initially it was the IT sector which attracted a whole host of NRIs to India but now banking and financial sector, real estate, retail, infrastructure, engineering, hospitality and even pharmaceutical sectors are drawing Indians from overseas. There are opportunities for the global Indian within the Knowledge Process Outsourcing (KPO) companies as well which have sprung across the country in recent times.

Encouragement from the government

Indians, who are born overseas and can prove their Indian origins, can apply for a special immigration status via The Overseas Citizenship Certificate (OCC). This certificate provides (almost all) the benefits associated with a citizenship without the need to give up the foreign passport. It is a lifetime, multipurpose, multi entry visa which is incorporated in the person’s foreign passport. Thanks to this certificate, NRIs can stay in India for any length of time and do not have to register with the foreigners’ office. The only privilege not accorded to these individuals is the right to vote or seek elected office. This is a major step taken by the Indian Government to encourage successful Indians abroad to come back to their roots and contribute to the development of the country.

Recruitment perspective

As a recruitment firm, we can vouch for this trend as we are increasingly being approached by prospective candidates from US and UK wanting to return home. A majority of these candidates are from the banking and financial sector, especially investment banking and private equity. Infact most of these candidates have been overseas anywhere between 7 to 10 years wanting to benefit from the strong Indian economy. Students who stayed back post their education and having garnered work experience for around 2 years are also looking at returning to India to make their mark.

Challenges for the country

While the homecoming of NRIs is euphoric, it also has it’s own share of challenges. The sudden inflow of funds has lead to a boom in real estate besides creating artificial scarcity for a whole host of other goods. Some critics have also indicated that the divide between the rich and the poor has widened.

Benefits to the country

Reverse brain drain has lead to a whole host of professionals with international exposure coming back to implement their knowledge for the progress of India. Companies are trying to leverage the experience of these professionals in order to deal with their foreign counterparts or leverage their contacts to further the company’s business interests in terms of alliances or tie – ups. They are also able to train and guide the local talent.

Commercial benefits aside, India is known to welcome one and all with open arms.