Answer: Indian Diaspora is a generic term used for addressing people who have migrated from the territories that are currently part of India to other foreign countries. It is composed of ‘NRIs’ (Indian citizens not residing in India) and ‘PIOs’ (persons of Indian origin who have citizenship of another country).

Contribution of diaspora in promoting India’s growth and its interests in their host countries

• Economic Aid in Form of Remittances: Remittances help to bridge the balance of payment (BoP) gap and support a country’s development. 
• In 2022, Remittances to India crossed $100 billion for the first time.
• Economic Investments: Indian diaspora members often invest in India through foreign direct investment (FDI), portfolio investments, and remittances. This infusion of capital helps stimulate economic growth, create jobs, and fund development projects.
• Technology and Innovation Transfer: Many Indian professionals and entrepreneurs abroad are involved in cutting-edge technology, research, and innovation sectors. They often collaborate with Indian institutions and businesses, facilitating the transfer of technology and knowledge back to India.
• Cultural Diplomacy: The Indian diaspora promotes India’s rich culture, traditions, and heritage in their host countries. 
• Cultural events, festivals, and initiatives like yoga and Indian cuisine contribute to cultural diplomacy and enhance India’s image abroad.
• Bridge Knowledge Gap: Diaspora acts as an important ‘bridge’ to access knowledge, expertise, and resources from the rest of the world for the development of India.

Challenges faced by Indian Diaspora

• No Proper Grievance Redressal: There are multiple portals such as e-Migrate, and the Centralised Public Grievance Redressal and Monitoring System (CPGRAMS) to resolve the grievances of Indian nationals abroad. However, multiple portals delay grievance resolution and lead to duplication of work.
• Country/Region-Specific Problems: There are region/country specific problems faced by Indian diaspora.
• For instance, Indians in Gulf countries come across discriminatory policies like the KAFALA system (requires a local sponsor) whereas Indians in US/UK mostly come across racial discrimination.
• Lack of Policy: The government has no clear policy on diaspora in place, despite their socio-economic contributions to the development of the country.
• No Centralised Database: There is no centralised database of Indian diaspora. The MEA figures differ from country-specific embassies figures and other country data on migrants.
• Women Exploitation: There has been increasing cases of women being deserted in NRI marriages.

Measures to Counter the Challenges faced by Indian Diaspora

• Create an Authentic Database: An authentic embassy-wise database must be created and the diaspora must be encouraged to register themselves.
• Dedicated Policy for Diaspora: The government should draft a clear policy document on the diaspora which would serve as a guiding principle for engagement with the community.
• Rehabilitation of Workers: A rehabilitation scheme to ensure livelihood security for workers who lost their jobs or were unable to return to their place of employment is required.
• Skilling of Potential Migrant Workers: With new labour markets emerging in East-Asian countries such as Japan, Korea, and Taiwan, the skilling of potential migrant workers is needed.
• Tackle Discrimination: There should be foreign centres/embassy dedicated offices to deal with all forms of discrimination and harassment faced by Indians.

The overseas community of India plays a very vital role in the development of India and in aiding the foreign policy goals of India. The Government of India does acknowledge the role played by the Indian diaspora but the above measures must be adopted to effectively address the challenges faced by them.