Opinion: Indian diaspora a faster route to export growth

INDIA has set itself an ambitious target of increasing its goods exports to $1 trillion by 2030. But with less than four years remaining, the gap is still substantial. India might miss that target by almost $300 billion.If India wants to reach this milestone, it needs something that will encourage export growth. Traditional methods, like trade agreements, are necessary, but they can be slow in showing results.India does, however, have a faster route to export growth: its diaspora. With networks spanning every corner of the world, India's diaspora entrepreneurs offer one of the fastest routes to export growth, serving as entry points into foreign markets.I am proud to be a member of the Indian diaspora, and I have been spending ever more time on the ground in India over recent years. But before I retire to India in the coming years, I feel a duty to help forge bridges between India and the rest of the world, whether the UK, Uganda, or elsewhere.The Indian diaspora is the largest in the world. Eleven Fortune 500 companies are led by CEOs of Indian heritage, including technology heavyweights Microsoft, Google and Adobe. This success is often celebrated as a point of pride — but it's also an underused economic lever.Diaspora entrepreneurs operate in markets across the globe. In the UK alone, there are 1,197 Indian-owned companies, each with its own connections, partnerships and customers, according to Grant Thornton. These entrepreneurs present two advantages. They understand India as well as the commercial environment of foreign markets in which they operate.In an increasingly uncertain global trade environment, India's diaspora entrepreneurs must be leveraged as commercial bridges to connect top-quality Indian businesses with foreign buyers and distributors.What would that look like in practice? Firstly, in the US, organisations like The IndUS Entrepreneurs (TiE) show us what is possible. Founded in the 1990s by a group of Indian-American entrepreneurs, the network now spans 16 countries and consists of over 3,500 entrepreneurs.TiE's Washington DC chapter is a prime example of how leveraging connections can drive growth. By building on its relationship with Washington, it has connected entrepreneurs with government, creating an entry point into a difficult sector.Secondly, diaspora-owned firms can act as first buyers for Indian companies looking to export. The first sale abroad is often the hardest, but most important. Once that hurdle has been cleared, it acts as a reference point that businesses can use to attract sales in foreign markets.But acting as a first buyer is not without its risks. The government could find creative ways to encourage this initiative, perhaps by offering preferential pricing on early orders or underwriting the risk in a different way.Thirdly, I have found, through countless conversations, that there are many diaspora entrepreneurs who want to source from India but don't know which firms are ready to export. This opens one of the simplest ways for India to increase exports.The government could make it easier to find the right Indian exporters, pairing them with diaspora-led firms overseas, or pulling together sector-specific lists of Indian firms.But the contributions of diaspora entrepreneurs do not just have to be financial. These business leaders are a well of knowledge, and I can't overstate how helpful that sort of experience is when it comes to navigating foreign markets.Cultural quirks and regional differences can make it extremely difficult for firms to export their products. It is the sort of knowledge that you can't get from just reading about a country. Sometimes, it can only be learned from years of living in that market.That is where diaspora entrepreneurs come in. They have bedded themselves into their local market, and they have learned what works and what doesn't. This is all valuable information they can share with Indian businesses to make the exporting process smoother.Beyond connecting diaspora-led firms with Indian businesses, the government should actively use diaspora entrepreneurs' on-the-ground knowledge to shape programmes, such as an export promotion mission. This is a low-cost, practical intervention that can reduce the friction Indian businesses face when exporting for the first time.Done well, these small, practical interventions can make a big difference. By making it easier for Indian exporters to break into foreign markets, you increase the number of businesses trading internationally. The numbers quickly add up, and soon, the 2030 target doesn't seem so far away.Traditional pathways, like trade agreements, are still important. But India cannot rely on them alone. Agreements take time to reach, and policies can take years to be approved and enacted.India doesn't need to build new bridges to the global economy. It needs to begin viewing the diaspora not only as a symbol of Indian success, but also as a trade asset full of untapped potential.

Opinion: Indian diaspora a faster route to export growth

We need to begin viewing the diaspora not only as a symbol of Indian success, but also as a trade asset

Sukhpal Ahluwalia

Opinion: Indian diaspora a faster route to export growth

We need to begin viewing the diaspora not only as a symbol of Indian success, but also as a trade asset

Sukhpal Ahluwalia

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