“We need American tech companies to fully support America. We want you to put America first.” Speaking at an artificial intelligence (AI) summit on July 23, U.S. President Trump directly addressed tech giants like Google and Apple, accusing them of “taking advantage of America’s freedom” by building factories and hiring foreign workers in countries like India, thereby shifting American jobs overseas. “Those days are over,” he declared.
For India—one of the largest sources of tech talent for the U.S. each year—Trump’s remarks, following tightened immigration policies, growing hostility toward international students, and cuts to research funding, are undoubtedly another blow.
Some believe these U.S. policy shifts could create an opportunity for India to attract its own talent back home. But others argue that India’s chronic brain drain stems from deeper systemic flaws and increasing dependence on foreign systems. With countries like Germany and Australia stepping up efforts to lure Indian professionals, whether India can win in this broader global “war for talent” remains uncertain.
Brain Drain Threatens the Vision of a “Developed India by 2047”
According to the reporter’s observations, Indian middle-class families with some financial means are increasingly eager to send their children to study in Western countries—sometimes even for high school—as a stepping stone for future immigration. This trend of “study abroad to immigrate” has persisted for decades, and many Indian parents see their children’s overseas education and immigration as a source of pride.
Data shows that during the 2023–2024 academic year, the number of Indian students in the U.S. reached a historic high of 330,000, making India—not China—the top source of international students in the United States.
In addition, a large number of Indian professionals are leaving through “skilled migration” programs. These individuals are often in their 30s when they leave India, already holding qualifications, skills, and experience as engineers, doctors, or other specialists. After years of hard work abroad, they establish stable careers and homes, raise children, and rarely consider returning to live in India. As a result, India has long been plagued by brain drain but remains unable to compete with other countries in terms of salary levels, living conditions, research funding, and academic resources—making it difficult to reverse this trend.
Four years ago, Raj, a young man from Tamil Nadu, graduated from a prestigious university with a degree in computer science. “My parents took out a student loan of 1.9 million rupees (about $22,800), so I studied hard, hoping to land a high-paying job,” the 27-year-old told CNBC last year. Despite going through multiple rounds of interviews, he couldn’t secure the high-salary position he had hoped for. Eventually, he had no choice but to accept a customer service job with Amazon in India, earning 22,000 rupees per month—barely enough to repay his loan and cover basic living expenses.
Raj is just one of the millions of well-educated young people India produces each year. According to The Times of India, India graduates roughly 1.5 million engineering students annually. While around 60% of them actively seek employment, only about 10% manage to find jobs within the country. Many are determined to seek higher-paying jobs abroad. Job portal Foundit reported that in the past year, international applications from Indian users on its platform exceeded 2.2 million—a 59.4% year-on-year increase.
According to Indian government statistics, there are over 30 million Indians living overseas. Many hold increasingly important roles in the global tech, business, and even political sectors. In this year’s Fortune Global 500 list, 11 companies are led by Indian-origin CEOs—including Sundar Pichai (Alphabet), Satya Nadella (Microsoft), and Leena Nair (Chanel)—all of whom were born and educated in India before moving abroad. India Today notes that in the past five years, at least eight prominent political leaders of Indian descent have emerged on the global stage, including former UK Prime Minister Rishi Sunak, former U.S. Vice President Kamala Harris, and Mauritius President Prithvirajsing Roopun.
According to the Deccan Herald, India is ambitiously pushing toward its “Developed India by 2047” vision, but the exodus of high-level talent poses a serious threat to realizing that goal. From 2015 to 2022, around 1.3 million Indians left the country—most of them highly educated professionals. Data from the Ministry of Home Affairs shows that over 600,000 Indian citizens have renounced their citizenship in the past five years.
The report stresses that brain drain is not just about numbers—it’s about lost economic potential. For instance, the information technology (IT) sector contributes 7.5% to India’s GDP. Experts estimate that if the skilled workers who left had stayed, the IT sector could generate an additional $15–20 billion annually. The same applies to AI: while 8% of the world’s top AI researchers are Indian, only 1% remain in India. In healthcare, India has just 1.7 nurses per 1,000 people—well below WHO standards—yet around 70,000 trained Indian doctors are currently practicing in the U.S. and Europe.
Exploring Alternatives: Germany, Ireland, and More
According to Indian media, in April this year, many Indian students studying in the U.S. suddenly received notices from the SEVIS system (Student and Exchange Visitor Information System) stating that their student visas had been revoked. Those who hadn’t received such notifications also began quitting part-time jobs to avoid the risk of visa cancellations due to unauthorized work.
On July 24, Business Standard reported that the U.S. is preparing to replace the current lottery-based H-1B visa system with a weighted selection process. This could reshape how Indians study and work in the U.S. The H-1B visa is a temporary work visa for foreign professionals in specialized fields. From October 2022 to September 2023, Indian citizens received 72.3% of all H-1B visas issued by the U.S. U.S. Citizenship and Immigration Services (USCIS) Director Ur Jaddou stated on July 24 that H-1B visas should favor American companies hiring highly paid, highly skilled foreign talent, rather than those looking to cut costs by hiring cheaper labor—thereby undermining the competitiveness of the domestic workforce.
The U.S. government’s framing of stricter visa policies as “national security measures” has sparked skepticism in India. Some believe these shifts could undermine the foundation of years of U.S.-India tech collaboration. A commentary on the website of India’s Institute for Impact and Policy Research warned that H-1B visa reforms would weaken joint India-U.S. projects and damage a tech ecosystem that relies heavily on Indian expertise. Restrictive policies are also affecting Indian professionals’ ability to reunite with their families and maintain stable careers, with green card wait times stretching for decades in some cases.
Indian students planning to study in the U.S. are also feeling the effects. When the U.S. government announced a freeze on new student visa appointments at embassies and consulates worldwide in May, study-abroad consulting offices in New Delhi were crowded with anxious young Indians. According to the latest correspondent, India’s college entrance exams typically take place from February to March, and domestic university entrance exams follow in May—requiring early registration. Indian students planning to study abroad usually start preparing a year in advance and can receive admission offers from overseas universities based on just their entrance exam scores, often skipping domestic university applications entirely.
Now, many Indian students are turning to universities in other countries, such as Singapore and Ireland. That shift has delighted Mr. and Mrs. Kocchar, who have run a study-abroad agency focused on Ireland for the past 20 years. They see the tightening of U.S. visa policy as a major boost for their business.
“Studying in the U.S. has become too risky,” said Jay, a university student from Telangana, in a June interview with The Times of India. He’s decided to pursue a master’s degree in mechanical engineering in Germany. “I hadn’t even considered this country before,” he said, “but the more I researched, the more appealing it became. Tuition is low, and monthly living costs are between €700 and €900—much cheaper than the U.S. I’m starting my application next month.”
According to The Economic Times, Germany is becoming increasingly popular among Indian students. A report from the German Embassy in India revealed that applications from Indian students rose 35% year-over-year this academic cycle—a record high—driven largely by stricter U.S. scrutiny of international student applications. Germany has also introduced a “Opportunity Card” (Chancenkarte) to attract global talent. This card allows candidates without a job offer to apply for certain types of visas based on a points-based system.
The Hindu reports that Indian students are also looking to Australia. Data from the Australian Department of Education shows that last year, Indian students made up 16% of all international university enrollments in Australia, reaching a record 139,000—second only to China. Australia’s trade commission emphasized that the country was among the first to establish university campuses in India, with about 430 partnerships between Australian and Indian institutions offering joint degree opportunities.
On July 25, The Times of India reported that the free trade agreement signed between India and the UK is expected not only to boost trade and lower tariffs, but also to enhance talent mobility and skill development. The agreement aims to expand educational and technical training cooperation between Indian and British institutions and businesses, particularly in sectors like manufacturing, green tech, digital services, and pharmaceuticals.
Long-Standing Structural Flaws and Foreign Dependence
“Turn brain drain into brain gain” has been a slogan championed by Indian Prime Minister Narendra Modi since he took office in 2014. Over the past decade, the Indian government has introduced a series of policies aimed at curbing the outflow of talent. Senior Indian officials have frequently called on overseas Indians to contribute to India’s development. At the national strategy level, India has launched initiatives like “Make in India,” “Digital India,” and “Startup India,” as well as scientific missions such as the “National Quantum Mission” and the “AI Mission,” encouraging overseas Indian experts in these fields to participate. On a policy level, India implemented the Overseas Citizenship of India (OCI) program to offer visa-free entry and investment conveniences to members of the Indian diaspora. The government has also launched scholarship programs, established talent databases, and invested in building science cities. While these efforts have achieved some results, the overall trend remains one of continued brain drain.
In recent years, a few individuals have returned to India. In 2021, 19-year-olds Palicha and Bohra dropped out of Stanford University to return to India and launch a startup, capitalizing on the booming express delivery market. They became symbols of India’s young returnee entrepreneurs. YouTube creator Aparna, who graduated from Columbia University in the U.S. a decade ago, returned to India to start a business and publish books. In one of her videos, she posed a provocative question: “After graduating, I landed a decent job in the U.S. If I had stayed, I’d probably be a millionaire by now. But beyond that, are we Indian immigrants around the world truly happy?”
Tighter U.S. visa policies have created new opportunities for talent to return to India, but whether the Indian government can respond swiftly and effectively remains uncertain. In the global “war for talent,” India’s appeal and competitive edge are still weak. In fact, the question of whether brain drain benefits or hinders India’s economic development has long been debated domestically. The Modi administration views talent outflow as part of the broader global movement of skilled labor. India’s Chief Economic Adviser, V. Anantha Nageswaran, stated, “Talent naturally flows to where the opportunities are—this has been the case for centuries. Instead of worrying, we should embrace the new perspectives and expertise it brings.”
Many Indians see this as characteristic of the country’s general attitude—one of going with the flow. Just as bullock carts, auto-rickshaws, private cars, buses, and pedestrians all somehow coexist in India’s chaotic traffic, there is less emphasis on the idea of “build the nest to attract the phoenix” and more of a mindset that says, “Why bother planting trees? Let the phoenix come and go as it pleases.”
However, critics argue that short-term gains cannot hide India’s long-term structural problems and increasing reliance on foreign systems. In its May issue, The Pivot magazine analyzed how the growing number of Indian executives at Fortune 500 companies and record-high overseas remittances are hailed domestically as “national pride,” which in turn obscures the harsh reality of limited opportunities within India. Superficially, India benefits from increased remittances, expanded global talent networks, and enhanced soft power—but the downsides are clear: India bears the cost of training talent, while the U.S. reaps the benefits. Relying on programs like H-1B visas to stimulate education and economic growth is effectively outsourcing the responsibility for jobs and education to foreign markets.
So why, despite its vast talent pool, doesn’t India have a world-leading tech company? The answer lies in institutional flaws—namely, the lack of stable governance, transparent market regulation, accessible capital, and a fair legal system. As the article concludes: “How to transform talent potential into momentum for systemic reform is a question India urgently needs to answer.”
Leave a comment