Transnational economic development: Pakistani and Indian diaspora in focus

Chauhdry, Kinza Tasleem

doi:10.3389/fpos.2024.1508012

PERSPECTIVE article

Front. Polit. Sci., 09 December 2024

Sec. Peace and Democracy

Volume 6 - 2024 | https://doi.org/10.3389/fpos.2024.1508012

This article is part of the Research Topic The Evolution of Homeland and Civil Security Policies around the World: Values and Resilience View all articles

Transnational economic development: Pakistani and Indian diaspora in focus

Kinza Tasleem Chauhdry^*

Department of International Relations, Lahore College for Women University, Lahore, Punjab, Pakistan

Introduction: Type 2 diabetes mellitus (T2DM) often leads to elevated blood glucose levels and lipid metabolism disorder, which is generally accompanied by dysbiosis of gut microbiota and metabolic dysfunction.

Method: In this study, a mouse model of T2DM was established by feeding a high-fat/sucrose diet combined with injecting a low dose of streptozotocin. The aim of this study was to analyze the regulatory effect of Suaeda salsa extract (SSE) on T2DM and its effect on the intestinal flora of mice.

Results: The results showed that SSE could significantly improve the body weight, fasting blood glucose (FBG), area under the curve (AUC) of the oral glucose tolerance test (OGTT), glycosylated serum protein (GSP) and islet function index. Moreover, 4-week body weight, FBG, AUC of OGTT, GSP, as well as intestinal acetic and butyric acid were significantly better in the SSE-L than in the MET group (p  <  0.05). In addition, it was also found that the potential hypoglycemic mechanism of SSE was related to the expression of Akt serine/threonine kinase (AKT-1) and glucose transporter-2 (GLUT-2) genes. Compared with the model group, SSE intervention significantly increased the abundance of probiotics, such as Soleaferrea, Alloprevotella, Lactobacillus and Faecalibaculum, while decreasing the relative abundance of harmful bacteria, such as Phocaeicola and Bilophila. Analysis of the correlation among intestinal microbiota, short chain fatty acids (SCFAs) and the hypoglycemic index showed that Dwaynesavagella was significantly correlated with acetic, propionic and butyric acid, as well as all the diabetes-related indexes analyzed in this study.

Discussion: Thus, this taxon can potentially be used as a microbiological marker of type 2 diabetes. Taken together, these findings demonstrate that SSE can alleviate T2DM and its complications by improving glycemia-related indicators and modulating the structure of intestinal flora.

Introduction

A diaspora refers to a community living outside its original homeland while maintaining its cultural identity. Initially, it was linked to forcibly displaced groups, like the Jewish community, but now it encompasses a broader spectrum of people who have relocated voluntarily. Governments have increasingly recognized the significance of diasporas due to their potential economic and political benefits. Diaspora economics focuses on the economic activities and interactions of dispersed communities with their country of origin. This includes financial contributions such as remittances, investments, and entrepreneurial activities directed toward their homeland (Constant and Zimmermann, 2016). Diasporas play a vital role in the economic development of their home countries through various means. Firstly, they facilitate foreign direct investment (FDI) and trade between their home and host countries, thus fostering economic growth. Additionally, when diaspora members return to their homeland, they bring back knowledge, innovation, and entrepreneurial skills, which contribute to the economy. This is supported by evidence showing that Diasporas play a role in facilitating the diffusion of knowledge and technologies back home, contributing to the economy in multiple ways that are determinants of economic growth (Bahar, 2020). Furthermore, diaspora remittances have become an important source of foreign capital inflows to developing countries, contributing to stock market development and overall economic growth. There are various contributions of the diaspora recognized by many researchers worldwide. Diaspora visiting their home countries contribute significantly to the tourism industry as well by spending money on various goods and services, such as accommodations, food, transportation, and souvenirs. This boosts the local economy and creates employment opportunities in the tourism sector. Diaspora communities often play a crucial role in promoting products from their home countries abroad, they may introduce and popularize traditional foods, beverages, handicrafts, and other cultural products in foreign markets. This not only generates revenue for producers back home but also enhances the global recognition of their country’s product (Lowell and Gerova, 2004). For example, Indian diaspora communities across the United States have been instrumental in popularizing traditional Indian foods and beverages, such as curry dishes, naan bread, samosas, and masala chai, among others. Indian restaurants, grocery stores, and food festivals organized by diaspora communities have helped introduce these culinary delights to American consumers.

Diaspora play a pivotal role in fostering trade and investment between their home and host countries. Firstly, they facilitate Foreign Direct Investment (FDI) by connecting businesses across borders, paving the way for partnerships and collaborations that encourage investment from foreign firms into local markets. Secondly, diaspora provide valuable market insights, sharing information on consumer preferences and regulatory requirements, enabling businesses to tailor their offerings accordingly. Lastly, they aid in negotiations, mediating disputes and building trust between parties, ultimately creating opportunities for businesses to access new markets, expand their reach, and contribute to economic growth and development.

Indians living abroad are classified into (Non Resident Indians) NRIs, (Persons of Indian Origin) PIOs (merged with OCIs in 2015), and (Overseas Citizens of India) OCIs, all contributing to India’s economy and culture (Naujoks, 2017). They have an extreme significant presence in USA. Pakistan’s diaspora, approximately 9 million strong, resides mainly in the Middle East, UK, US, and Canada (Crush and Chikanda, 2018). Its roots trace back to British colonial times, with significant growth in the 1960s due to UK labor needs and Pakistani unrest. British Pakistanis form the largest Western community, with a significant presence in the US, particularly in New York. Arab Gulf states, especially Saudi Arabia, Kuwait, and Bahrain, host large Pakistani populations, highlighting the diaspora’s global influence. This article explores the dynamic realms of the Pakistani and Indian diaspora, exploring their substantial economic contributions to their respective home countries.

The diaspora, dispersed across the globe, plays a pivotal role in fostering economic ties between their adopted nations and their cultural roots. The comparative study of Indian and Pakistani diaspora policies is justified by the need to understand the economic, social, and cultural contributions of diaspora communities to their respective home countries. The central objective guiding this study is to analyze the differences in economic stability between India and Pakistan, considering the role of their diaspora and its impacts on national development. This will help analyze how Pakistan can utilize its diaspora asset for its development.

The Indian diaspora

The Indian diaspora plays a significant role in global affairs, particularly in fields like business and academia, serving as a crucial link between India and the international community. While some may view them as heroes, it’s important to recognize the complexities of their experiences and contributions (Rado, 2020). Oversimplifying their achievements overlooks the diverse challenges faced by individual diaspora members and the nuanced nature of their impact on international relations. In his examination of the High-Level Committee (HLC) research, Robi Rado positions the Indian diaspora not merely as a dispersed community but as influential contributors, framing them as heroes in the development of their home countries. He emphasizes their financial achievements and argues that their knowledge and investments play a pivotal role in India’s development. The literature on the Indian diaspora in Southeast Asia underscores the historical context of early migrations to countries such as Brunei, Cambodia, East Timor (Timor-Leste), Indonesia, Laos, Malaysia, Myanmar (Burma), the Philippines, Singapore, Thailand, and Vietnam. Initially transient, these migrations eventually led to the establishment of permanent settlements and diasporic networks across the region. Despite the diversity within the community, Indians played a crucial role in the economic and commercial life of Southeast Asia. However, disparities persisted, with segments of the diaspora facing socio-economic challenges in various countries. India’s policy approach toward its diaspora in Southeast Asia has evolved over time, with increased engagement observed particularly in the 1990s (Amrith, 2011). Nevertheless, challenges such as jurisdictional complexities and concerns over interference in the internal affairs of other countries have constrained India’s efforts (Pande, 2014). Not only in south east Asia the Indian diaspora is present in numerous countries worldwide, including the United States, United Kingdom, Canada, Australia, United Arab Emirates, and several Gulf countries. The Indian diaspora makes significant contributions to their home country in various dimensions. Politically, they provide support by advocating for Indian interests internationally and engaging in diplomatic efforts. Economically, the diaspora contributes through philanthropy, direct investment, capital markets, tourism, and trade, fostering economic growth and development. Socially, they play a role in social development through initiatives such as volunteerism, capacity building, and advocacy for social causes. Recognizing the importance of the diaspora, there is a growing emphasis on engaging with them and leveraging their contributions to advance India’s political, economic, and social objectives, ultimately contributing to the nation’s overall progress and prosperity (Varma, 2020).

The Indian diaspora, especially in the United States, has attained significant prominence, with Indian-Americans holding top positions in technology and other professions. Leaders like Satya Nadella, Sundar Pichai, and Indra Nooyi exemplify the diaspora’s global reach and impact. Recognizing diaspora communities as national assets, many countries actively seek to engage them for economic development projects. This reciprocal flow of skills, capital, and technology benefits both the home country and the destination, positioning the Indian diaspora as a crucial soft power tool for India’s development. The diaspora’s direct contributions to the Indian economy through Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) are noteworthy. Additionally, their substantial financial contributions through remittances play a crucial role in India’s economic landscape. Acting as a bridge, connecting Indian entrepreneurs with global networks and markets, the diaspora enhances India’s integration into the global economy. This engagement extends beyond personal expenditures and charitable donations, actively fostering international partnerships and collaborations. The lavish spending and generous philanthropic contributions of individuals from the diaspora, particularly NRIs, not only contribute significantly to India’s economic activity but also play a crucial role in establishing international business relations (Khan and Chandio, 2024). These actions contribute to the overall enhancement of India’s integration into the global economy.

Building on the theme of fostering international partnerships and collaborations, the recent collaboration between IBM and the Indian Ministries of Education and Skill Development is a testament to the proactive efforts in skill development and technology integration. They’re offering courses in important areas like artificial intelligence, cybersecurity, and cloud computing. These skills are in high demand in today’s job market. By providing these courses, they are helping more people in India become qualified for good jobs. It’s a way to make sure that the Indian workforce is ready for the modern world and has the skills needed to succeed (Banga and te Velde, 2019). A technologically skilled workforce is crucial for attracting global investments and fostering economic development. According to Sandip Patel, IBM India’s Managing Director, “India is a priority area for IBM” and Arvind Krishna (the CEO of IBM), being Indian, likely possesses a deep understanding of the Indian education system, cultural nuances, and societal needs Arvind Krishna, as an Indian CEO of IBM (International Business Machines Corporation), likely understands India’s culture and education system well, enabling the development of educational programs tailored to local needs. His connections with Indian government officials facilitate smoother collaboration, aligning initiatives with national education goals and enhancing the global reputation of Indian education.

The Indian diaspora has made significant contributions to the Software Technology Parks of India (STPI) in fostering innovation, entrepreneurship, and economic growth. The diaspora’s involvement in the STPI has been instrumental in promoting software exports, supporting startups, and driving the growth of the IT industry in India. Through their expertise, investments, and networks, the Indian diaspora has played a crucial role in establishing various Centers of Entrepreneurship (CoEs) within the STPI, focusing on emerging technologies like IoT (Internet of Things), Block chain, Artificial Intelligence, Machine Learning, Robotics, and more. These CoEs serve as hubs for innovation, research, and development, nurturing startups and promoting India’s leadership in cutting-edge technology areas (Felayati and Susanto, 2018). The diaspora’s role becomes important in a strategic sense. When people migrate for work, it helps the host country but can be a loss for their home country. However, the diaspora addresses this challenge by sending remittances, which provide vital financial support back home. For example, Indian migrants sent $69 billion back in 2015, constituting 3% of the nation’s total output (Kro, 2020). Today it has increased up to $136 billion as of February 2023. These remittances strategically aid families, addressing immediate needs and enabling children’s education. Beyond this, they alleviate unemployment and bolster foreign exchange reserves. The Indian government recognizes the diaspora’s strategic value, appreciating both monetary contributions and the potential for impactful investments. Despite initial productivity concerns, the diaspora strategically enhances the economy, contributing financially and fostering positive impacts.

The Indian diaspora’s influence extends to intellectual spheres. The Indian diaspora’s knowledge contributions position India as a rising knowledge hub. Professionals in fields like engineering and software development, including figures like Sundar Pichai and Satya Nadella, showcase India’s impact globally. Indian lobby is very much powerful in United States (Joshi, 2018) and not only lobbying but technological advancement allow India to have more influence in the country. Indian education, notably institutions like IITs (The Indian Institutes of Technology), is competitive, leading to comparisons with esteemed Western counterparts. This enhances India’s soft power and garners global respect for excellence in mathematics and science. In Silicon Valley, Indians are equated to Western excellence in mathematics and science, with Indian engineers and software developers earning recognition comparable to institutions like MIT. The growing influence of the Indian diaspora can amplify Indian lobbying efforts, contributing to a stronger advocacy for national interests and fostering collaboration with other nations, including the United States. Efficient lobbying by the American Indian diaspora for increased Foreign Direct Investment (FDI) from the US holds the potential to significantly benefit India’s economy. The infusion of capital from heightened FDI can spur economic growth, create job opportunities, and foster technological advancements through the transfer of cutting-edge technologies. This collaboration can contribute to economic diversification, reduce unemployment, and enhance India’s global competitiveness. Moreover, the improvement in the trade balance and the establishment of a business-friendly environment can position India as an attractive destination for US investments, further bolstering its economic development and resilience on the world stage.

The Indian Diaspora can be leveraged to support India’s demand for a permanent seat in the UN Security Council by engaging them in diplomatic advocacy, networking, and lobbying efforts on the global stage. Utilizing their influence, connections, and resources, the diaspora can work to garner international support for India’s bid. This could involve diaspora members engaging with policymakers, influential individuals, and institutions in their host countries to advocate for India’s rightful place in the UN Security Council (Mahalingam, 2013).

The government introduced the People of Indian Origin (PIO) Card Scheme, acting like a special card with benefits for Indians living abroad. In 1999, the Bhartia Janata Party (BJP) made the Chennai Declaration, stating that Non-Resident Indians (NRIs) and People of Indian Origin (PIOs) are like a big family, and the government wants to strengthen their connections for India’s development (Dubey, 2011). In 2000, a special group, the High-Level Committee, was formed to check how Indians abroad are doing and suggest better plans to treat them fairly, considering their rights. These are efforts by the government to improve the lives of Indians living outside the country and build strong bonds with them. In 2002, Atal Behari Vajpayee released the Singhvi Committee Report, discussing the possibility of granting dual citizenship to people of Indian descent in specific countries. This would mean they could be citizens of both India and their host country (Gangopadhyay, 2005). The committee recommended this within the framework of the Citizenship Act. Additionally, the government later introduced the Overseas Citizenship of India (OCI), allowing people of Indian origin to have a special connection with India, even if they hold citizenship in another country. So, Indians in certain places could enjoy the benefits of being citizens in both India and their adopted home through OCI. The L.M. Singhvi-led High-Level Committee recommended improvements in airports, regulatory requirements, and welfare for Indian women married to NRIs/PIOs, with sector-wise suggestions for Culture, Economic Development, Tourism, Education, Health, and Media, emphasizing the importance of a well-defined policy and country-specific plans to enhance connectivity with the Indian diaspora.

The Pakistani diaspora

Pakistani diaspora also has a significant presence across the globe, with major concentrations found in the Middle East, particularly in countries like Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain, where they contribute to sectors such as construction, healthcare, and services. Additionally, sizable communities reside in the United Kingdom, notably in cities like London, Birmingham, and Manchester, engaging in various fields including business, healthcare, education, and politics (Erdal and Horst, 2010). Pakistani expatriates have also established their communities in North America, Europe, Australia, and New Zealand, which are contributing to their host countries in sectors such as technology, medicine, academia, and entrepreneurship (Pilot Guides, 2022).

The economic contributions of the Pakistani diaspora are significant. They primarily involve remittances, with migrants sending substantial amounts of money back to Pakistan, which supports their families and boosts the country’s economy. Additionally, the diaspora engages in various forms of investment, including real estate and philanthropic ventures, contributing to economic development. Business activities undertaken by Pakistani migrants, both in their host countries and in Pakistan, foster entrepreneurship and create job opportunities. Furthermore, the diaspora actively participates in philanthropic efforts, particularly during times of crisis, providing aid and support to communities in need (Ahmad, 2019).

Pakistani Diaspora can be categorized into groups: low-income individuals sending remittances, professionals engaged in philanthropy, and students actively projecting a positive image of Pakistan abroad. Each group contributes uniquely to the country’s economic and social dynamics (Qaisrani, 2022). The Pakistani diaspora, exceeding 10.80 million individuals globally, is a powerful force contributing to Pakistan’s economic growth and global influence. Found in the Middle East, the UK, and the US, they excel in diverse fields, providing financial support through remittances and influencing political situations through lobbying and information sharing. Their patriotism is a key asset, but there’s a call for constructive engagement, avoiding anti-state propaganda for the nation’s greater good (Khan and Chandio, 2024).

According to Islamic Economy Database, Pakistan received approximately $150 billion in domestic remittances between 2017 and 2022. In 2022, Pakistan ranked fifth among the leading countries in terms of remittances, with $29.9 billion entering the country during that year. Worldwide, remittances totaled $758 billion in 2022, with OIC nations receiving $193 billion, equivalent to 25.5% of the global amount (Jebran et al., 2016). Diaspora philanthropy plays a vital role, especially with Pakistani expatriates in the UK making substantial contributions through financial aid, material assistance, and volunteering efforts. Furthermore, diaspora groups play an active role in humanitarian efforts in Pakistan, particularly during times of natural disasters. Motivated by a strong connection to their homeland and a commitment to easing hardship, these organizations are involved in diverse areas such as education, healthcare, and livelihoods. They demonstrate swift and adaptable responses to emergencies while also emphasizing sustainable, long-term support.

The Pakistani government values the contributions of its diaspora and their remittances. The Roshan Digital Account, led by the State Bank of Pakistan, aims to make it easier for overseas Pakistanis to send money back home digitally. This not only saves costs but also encourages more investment in the country. Overseas Pakistanis can open accounts with local banks digitally, fostering both short-term remittances and long-term financial involvement in Pakistan (Ali et al., 2021). The Pakistani Origin Card (POC) is examined as a diaspora engagement measure, serving those already engaged with Pakistan but making no difference for those not already involved. The POC is seen as a quasi-citizenship status, affirming membership and granting certain rights, particularly related to travel (Erdal, 2016).

Many senior positions in Pakistan’s government have been filled by professionals from the diaspora, especially those working abroad in international financial or development organizations. This includes roles such as Finance Minister, Advisor to the Prime Minister, and Governor of the State Bank of Pakistan. The trend spans several decades, with individuals like Mahbub ul Haq and Finance Minister Shamshad Akhtar having extensive experience abroad (She has worked for United Nations) before joining the government. Interestingly, not only economists but also entrepreneurs, including start-up capitalists, have been brought in to shape public policy and development, even influencing institutions like the Pakistan Cricket Board (Zaidi, 2013). Pakistanis argue a lot that the concern about brain drain, where graduates leave Pakistan for jobs abroad. It is answered by Ishrat Husain in her article that this is not well-supported by strong statistical evidence. Many graduates from top Pakistani universities choose to stay in Pakistan. Additionally, the perspective suggests that in the globalized world, such migration should be seen as “brain circulation.” If Pakistanis gain jobs abroad based on their merits, the experience they acquire in different cultures can enhance their skills and knowledge, benefiting both them and Pakistan when they return. The analogy of South Korea in the 1970s and 1980s is cited as an example: by offering opportunities and incentives for skilled individuals to return, Korea transformed into an OECD country with notable achievements in innovation. The key point is that instead of viewing migration purely as a loss, it can be an opportunity for skill enrichment and subsequent contribution to the home country (Husain, 2016). Despite their significant annual contributions of nearly $30 billion to the national economy, these citizens are denied their right to vote, creating a trust deficit. Political decisions, like annulling their voting rights, hinder the full integration of this economically vital community into Pakistan’s political life, impacting the country’s overall economic transformation (Karim, 2023).

Comparative analysis

When examining the Indian and Pakistani diasporas, it’s evident that both communities play crucial roles globally. Despite shared historical roots, each diaspora possesses distinct features and impacts, reflecting unique journeys and contributions. Both countries have a long history of migration, with people seeking better opportunities due to factors like low wages, poverty, and political issues (Zubair and Bögenhold, 2018). Comparison between the Indian and Pakistani diasporas show some clear differences. Indians abroad have built strong networks and support systems, which have helped them succeed in places like Silicon Valley and UK politics. On the other hand, Pakistanis, while also achieving success, face challenges due to a lack of strong community networks and activism. This has led to lower remittances and perceptions of untapped potential. The disparity in size between the Indian and Pakistani diasporas leads to differential impacts on their respective economies. Remittances are crucial for development as they contribute to poverty reduction, economic growth, and inequality mitigation. They help transfer wealth from richer to poorer nations, supporting growth and poverty reduction efforts in poor and developing countries. Additionally, migration from poor to developed countries benefits both parties by providing labor mobility benefits and incentives for return to home nations (Siddique et al., 2016). Pakistani immigrants used to send more remittances back home compared to Indian immigrants before 1990. However, with the passage of time the number of Pakistani immigrants decreased, possibly due to reasons like terrorism and international migration policies. In contrast, Indian immigrants began to remit more money after 1990, and this trend has continued since then. India, with its larger diaspora, benefits from substantial remittances, investments, and entrepreneurial ventures, which contribute significantly to economic growth, job creation, and innovation. Indian expatriates’ contributions boost domestic consumption and investment, making India’s economic position stronger worldwide.

Conversely, Pakistan’s diaspora (which is small as compared to India), while also contributing remittances and investments, may not exert as profound an influence on the economy as India’s diaspora does. India even has a status that they receive the largest remittances worldwide. In 2021 India received $89.127 billion in the form of remittances, while Pakistan received $31.2 billion from 2021 to 2022 (Jijin et al., 2022). The higher amount of remittances received by India suggests a potentially larger impact on its economy compared to Pakistan. This increase significantly impacts households’ incomes and contributes to the GDP of both countries. Both India and Pakistan rank among the top 10 remittance-receiving Asian countries, highlighting the importance of these financial flows to their economies. Beyond remittances, the difference in the distribution of the Indian and Pakistani diasporas can have several adverse effects. The United States is estimated to have the largest number of Indian diaspora. Firstly, in terms of diplomatic influence, India, with its larger and more dispersed diaspora, may have greater leverage in international relations, enabling it to lobby for its interests more effectively on the global stage compared to Pakistan. When it comes to Pakistan Saudi Arabia is identified as having the largest number of Pakistani diasporas. The overseas Pakistani community in Saudi Arabia holds significant importance due to their substantial contributions to the country’s development and economy. These are the countries from where both countries get the most remittances.

The comparison of Indian and Pakistani diaspora exhibits that Indian Diaspora is very much united and organized on the other hand Pakistani diaspora community is very much divided. For instance, during cultural festivals or national celebrations, the Indian diaspora often comes together to organize large-scale events, such as Diwali festivals or Republic Day parades, where people from diverse Indian backgrounds gather to celebrate their shared heritage and identity. Most recently in 2023 Indian Diaspora celebrated Diwali in White house (Upadhayay, 2023). These events often receive significant support and participation from various Indian community organizations, temples, cultural associations, and businesses, showcasing a sense of unity and cohesion within the Indian diaspora. On the other hand, the Pakistani diaspora may not exhibit the same level of unity and organization during similar events. Due to factors such as regional, linguistic, and sectarian differences within the Pakistani community, organizing large-scale events or initiatives that represent the entire diaspora can be challenging. For example, while there may be separate events organized by Pakistani community members to celebrate Eid or Pakistan Independence Day, they may not always attract the same level of participation or support from across the community. This difference in unity and organization reflects broader dynamics within the Indian and Pakistani diaspora communities, where the Indian diaspora tends to be more cohesive and organized, whereas the Pakistani diaspora may experience greater fragmentation and division.

The Indian diaspora, especially in the United States, has garnered significant prominence, with leaders like Satya Nadella and Sundar Pichai exemplifying their global impact. In contrast, the Pakistani diaspora, while also present in influential regions like the Middle East and the UK, focuses on diverse fields and financial support through remittances. Both diasporas serve as vital links connecting their home countries with the rest of the world, leveraging their skills, capital, and technology for economic development projects. However, the Indian diaspora’s direct contributions to India’s economy through FDI and FPI, alongside substantial remittances, appear more pronounced compared to the Pakistani diaspora’s emphasis on financial involvement through initiatives like the Roshan Digital Account.

The Indian diaspora’s expertise and knowledge contributions have positioned India as a burgeoning global knowledge hub, particularly in sectors like technology, medicine, and academia. This influence amplifies lobbying efforts for increased foreign investment and economic collaboration, notably with influential nations such as the United States. In contrast, while the Pakistani diaspora also holds significant professional sway, particularly in fields like healthcare and finance, obstacles such as the denial of voting rights impede their full integration into Pakistan’s political landscape (Shabbir, 2024). Despite these challenges, both diasporas exhibit patriotism and a shared desire for constructive engagement, refraining from anti-state activities to promote the greater good of their respective nations. However, the Indian diaspora’s lobbying efforts for India’s global interests, including securing a permanent seat in the UN Security Council, appear more pronounced compared to the Pakistani diaspora’s focus on addressing barriers to political integration and economic transformation within Pakistan.

Discussion

Though both the Indian and Pakistani diasporas play crucial roles in their countries’ economic growth, global influence, and political engagement, but their approaches and impacts vary in significant ways. The Indian diaspora, with its emphasis on economic investments, intellectual influence, and global lobbying efforts, showcases a proactive stance in shaping India’s trajectory on the world stage. In contrast, the Pakistani diaspora, while also contributing significantly to economic development and political discourse, faces challenges related to political integration and trust deficit, necessitating efforts to overcome barriers and harness its full potential for Pakistan’s prosperity and global influence. While exploring the economic dimension of Indian and Pakistani diaspora and considering the comparative analysis conducted, several key findings emerge. Firstly, the Indian diaspora, characterized by its larger size and cohesive structure, plays a significant role in bolstering economic stability through substantial contributions such as remittances, investments, and entrepreneurial ventures (Mahler, 2000).

Conversely, the smaller and less organized Pakistani diaspora faces challenges in exerting a comparable level of economic influence, despite notable contributions through remittances and financial involvement, particularly from regions like the Middle East. Secondly, while both diasporas contribute to their respective economies through remittances and investments, the Indian diaspora’s presence in influential regions like the United States further amplifies its economic impact. This is contrasted with the Pakistani diaspora, which, although significant in regions like the Middle East, may not wield the same level of economic influence due to its smaller scale and fragmented nature (Aamir, 2023). Thirdly, the Indian diaspora exhibits greater unity and organization, evident in its coordination of large-scale events and initiatives representing diverse backgrounds, while the Pakistani diaspora faces challenges in achieving similar levels of cohesion, often due to regional, linguistic, and sectarian differences (Nawaz, 2023). Additionally, while both Diasporas wield professional influence globally, the Indian diaspora’s efforts in lobbying for national interests are more pronounced, while the Pakistani diaspora faces obstacles to full political integration, impacting its advocacy capabilities.

In addition to uncovering these findings, it is important to understand the methodological approach employed in this research. This research utilized a qualitative research method, which involves gathering and analyzing non-numerical data, such as concepts, experiences, and opinions. This approach allowed for a deep dive into the complexities of comparing the Indian and Pakistani diasporas, ensuring a comprehensive understanding of their roles and contributions. By employing diverse data sources and perspectives, including individual narratives and subjective interpretations, this research enriched the comparative analysis, capturing insights that quantitative data alone may overlook. Additionally, this research complemented the qualitative approach with secondary data collection methods, further enhancing the depth and breadth of the study.

In understanding the contrasting roles and impacts of the Indian and Pakistani diasporas, the lens of neoliberalism provides valuable insights. Neoliberalism, advocating for minimal government intervention and individual economic freedom, elucidates the dynamics at play within diaspora communities (Cohen, 2017). Both countries have gone through neoliberal economic reforms which have had different effects on their diaspora dynamics. For example, due to its early adoption of these policies alongside emphasis on economic liberalization and globalization; India’s diaspora is often perceived as being bigger and more varied than that of Pakistan. Consequently, many Indians have migrated to places like the US and UK where such systems create opportunities for skilled labor migration as well entrepreneurship among migrants.

On the other hand, even though Pakistan also implemented some form of this model but few people may argue that their migrant population would be relatively smaller and concentrated within specific industries or regions due to various push and pull factors like political instability back home coupled with economic hardships. When applying neoliberalism, one can examine the socioeconomic impacts, size, composition, contributions, differentiating characteristics, and global roles played by the Indian and Pakistani diasporas within the framework of the world economy. The substantial remittances sent by diaspora members exemplify the autonomy and economic agency fostered by neoliberal principles, as migrants actively contribute to their home countries’ economies, particularly evident in the case of India’s diaspora (Sahoo, 2012). Furthermore, the success of diaspora professionals in attaining influential positions globally underscores how neoliberal policies facilitate the free movement of labor and capital across borders, thereby promoting economic growth on a global scale (Maher, 2017). Initiatives such as India’s PIO Card Scheme and Pakistan’s Roshan Digital Account resonate with neoliberal ideals by seeking to attract investment and engage with diaspora communities through market-oriented approaches (Yadav, 2020). Thus, the application of neoliberal principles helps elucidate the mechanisms through which Diasporas contribute to economic development and global influence in the context of India and Pakistan.

Recommendations for Pakistan

India actively involves its diaspora in various sectors such as technology, healthcare, and education through initiatives like the Global Skill Partnership Program. Leveraging the expertise of its diaspora, India has witnessed significant contributions to innovation, research, and economic development. Pakistan can emulate this approach by initiating skill development programs tailored to the expertise and interests of its diaspora, thereby engaging them more effectively in the country’s development endeavors. The Pakistani diaspora demonstrates immense potential across multiple sectors, as exemplified by individuals like Dr. Umar Saif, a renowned Pakistani computer scientist and entrepreneur based in the United States. Dr. Saif’s notable contributions to technology and innovation in Pakistan, particularly during his tenure as chairman of the Punjab Information Technology Board (PITB), underscore the diaspora’s capacity to drive technological progress and economic growth in their homeland (Zubairi et al., 2021). In contrast to India, Pakistan currently lacks comprehensive platforms or events dedicated to fostering dialogue, collaboration, and networking between the government and diaspora communities. While India hosts events like the Pravasi Bharatiya Divas and the Overseas Indian Facilitation Centre for OCIs, which facilitate high-level discussions, networking opportunities, and cultural exchanges, Pakistan does not have an equivalent platform to engage its diaspora members on a global scale (Safran et al., 2008). This absence of robust networking avenues limits Pakistan’s ability to tap into the full potential of its diaspora, despite the substantial remittances received from abroad. With a more cohesive approach to diaspora engagement, Pakistan could leverage this invaluable resource more effectively to drive economic growth and development within the country.

Conclusion

The comparative analysis highlights the significant economic contributions of both the Indian and Pakistani diasporas to their respective homelands. India’s larger and more globally dispersed diaspora, particularly focused in high-tech sectors, contributes significantly to its economic stability through remittances, investments, and political influence. India’s effective diaspora policies, aligned with neoliberal principles, foster robust economic ties and cultural diplomacy, enhancing its global standing. In contrast, Pakistan’s smaller and less dispersed diaspora faces challenges in achieving comparable impact, despite contributions in sectors like healthcare and IT somehow. Pakistan’s smaller diaspora (as compared to India) still plays a vital role in remittances and investments but faces challenges like fragmentation and lack of cohesion within the community. Though Pakistan appreciates the efforts of overseas Pakistanis in sending remittances, direct investments and in connecting their motherland to their new country through culture, this piece agrees that it is high time Pakistan had a properly formalized and effective diaspora policy in place. Pakistan needs to look at international practices of engagement with Diaspora and formulate its related policies accordingly. Pakistan can do efforts to leverage the potential of its diaspora as its important asset by emphasizing the need to adopt best practices from India, such as improving transparency and offering better incentives. It can take strategic initiatives to engage more with this community which will strengthen the expatriates at every forum on the globe. Pakistan can create networking with this community and use it as a resource which will eventually welcome experience and expertise in Pakistan. Moreover, leveraging Diasporas for economic development and diplomatic influence underscores the neoliberal emphasis on economic interdependence and globalization, showcasing how both India and Pakistan enhance their soft power and economic standing on the world stage through diaspora engagement.

Data availability statement

The raw data supporting the conclusions of this article will be made available by the authors without undue reservation.

Author contributions

KC: Conceptualization, Data curation, Formal analysis, Funding acquisition, Investigation, Methodology, Resources, Supervision, Validation, Visualization, Writing – original draft, Writing – review & editing.

Funding

The author(s) declare that no financial support was received for the research, authorship, and/or publication of this article.

Conflict of interest

The author declares that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Generative AI statement

The author(s) declare that no Generative AI was used in the creation of this manuscript.

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References

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