Life at IMDR

Pratik Potdar

Assistant Professor, IMDR®

Reverse Brain Drain-A Possibility?

For the past several years India has been battling with the problem of brain drain. Brain drain is characterized by the migration of quality workforce “in search of the better standard of living and quality of life, higher salaries, access to advanced technology and more stable political conditions in different places worldwide” (Dodani and LaPorte, 2005). As the world begins to world begins to look at India as the next stable economy, is a reverse brain drain possible? In this article, the author proposes a few arguments favoring such a scenario.

Brain drain from India began in the 1960’s when meritorious individuals, who received subsidized education in government schools, thought that the existing employment opportunities would not utilize their talent to the fullest. It ensured ‘mass exodus of educated individuals and brought about a crisis in Indian human capital, which at the time was extremely crucial for the post-colonial country to thrive during the nascent stages of its development (Chatterjee, 2022)

It gathered momentum predominantly in the early 1970s when the number of promising graduates increased and the government and private sector was not sufficient to absorb them. The famous song ‘Haal Chaal Thik Thaak Hai’ penned by Gulzar in 1971 hit Mere Apne had the following words

बी ए किया है, एम ए किया
लगता है वो भी, एँवे किया
काम नहीं है, वरना यहाँ
आपकी दुआ से सब ठीक-ठाक है

It roughly translates as “We did BA and MA just like that. Apart from being unemployed, all is well”. This pain, a result of a closed-door, government-monitored economy compelled talented folks to look for employment beyond national borders; considered to be a taboo amongst educated households, in the past.

The great oil boom created blue-collar and white-collar jobs, which laid the foundation for a strong Indian diaspora in the Middle Eastern countries. Oommen (1989) identified unemployment, immigration rules, colonial links, financial incentives and material benefits, pursuit of higher education, improvement of working conditions and facilities, avoidance of excessive bureaucratic procedures, and compensation for the mismatch between Indian education and employment as the factors for Indian migration that was predominantly heading towards Canada and the US.

The 1991 economic liberalization followed by an Information Technology boom ensured that several young Tech grads were hired by new and emerging companies. The exchange rate differences between the Indian rupee and the foreign currencies were widening every year, encouraging youngsters to migrate for a ‘better quality of life’. And it only increased despite several measures and benefits extended by successive governments.

Fast forward to 2020 when the COVID-19 pandemic ensured disruptions in global supply chains. The faith of people was being tested against all odds. This was quickly followed by the Ukrainian Crisis that increased inflation across Europe and the USA. The EU is battling an average inflation rate of 7%. Housing rents have skyrocketed, and those with mortgage payments have to work two jobs to maintain their existing standard of living. In the US fear of de-dollarization is gathering momentum wherein new graduates are increasingly worried about their future.

Comparatively, India is on the pathway to development and its domestic citizens are blessed with a stable economy and no real possibility of a recession for the next decade. The government has made efforts to curb migration by correcting several foundational problems in the economy. This brings the author to an important question – Is a reverse brain drain possible? Will those citizens, who surrendered their citizenship, and fell for the Western Lifestyle, come back?

A large number of opportunities now exist for the returning Indians in the private sector. Profit isn’t considered to be a ‘bad word’ and the start-up ecosystem is encouraged. The government has come up with multiple schemes to boost rural and urban employment. But is it going to be enough? From 2019 to 2021, about 163370 Indians voluntarily gave up their citizenship as per the statement given in the Lok Sabha by the Ministry of Home Affairs. With every passing year, wealthy Indians are accepting citizenship in foreign countries.

However, the typical Indian with a middle-class mentality might be forced to think. Cost and stability offered in the West will be a major factor in the decision-making process. They may compromise on salary in return for stability and mental peace. Corporations may decide to hire a returning expat instead of three local, inexperienced candidates. So what will be the trigger point?

A small crash in the US dollar will set the tone for future course corrections. Economists estimate that the USD, an inflated fiat currency, is in its last stages and a global financial reset may come by 2025. Tech jobs and companies with US exposure could be hit. Like the global Indian diaspora, we also have to cushion ourselves and be prepared.

References

Chatterjee Rishav, 2022. A Crisis in Human Capital – Understanding the Indian Brain Drain. Boston Political Review. https://www.bostonpoliticalreview.org/post/a- crisis-in-human-capital-understanding-the-indian-brain-drain
Dodani, S., & LaPorte, R. E. (2005). Brain drain from developing countries: how can brain drain be converted into wisdom gain? Journal of the Royal Society of Medicine, 98(11), 487-491.
Oommen, T. K. (1989). India: Brain Drain or the migration of talent? International Migration (Geneva, Switzerland), 27(3), 411-425.