INTRODUCTION OF BRAIN DRAIN

Highly qualified and skilled people migrate from domestic country to foreign country in search of
better life and better opportunities. This phenomenon is called ‘BRAIN DRAIN’.

The amount Indian students spend on overseas education is set grow from the current $28 billion to
$80 billion in 2024.India has been grappling with this phenomenon for quite a while. India is one of
the world’s most populous nation with a rich educational and cultural legacy, has been at the
forefront of this phenomenon for several decades now.

Brain drain started in 1960s in India.The country witnessed considerable economic growth and
development of Science and Technology infrastructure coupled with the emergence of science
community and intellectual climate in the 1990s.

While the British colonization disrupted the traditional systems in India, it brought several reforms
that radically changed Indian culture, such as the ideologies of Liberty, Equality, Freedom, Human
Rights etc. When English language was introduced, Indian society was also exposed to western
literature and art that inspired new ways of thinking and being. The idea of modernization, new
employment opportunities, the importance of English education were now set in the Indian mindset.

The conservative Indians consider the western influence as a negative phenomenon. the impact of
colonization, which instilled an ideology of perceived superiority in cultures and a loss of self-cultural
identify. Deep rooted traditional values such as joint family, arranged marriages, tolerance,
hospitality, defining success as living a life of contentment have all changed. However, for the middle
class and the rich the western way of life opened a new worldview. They began to dream a life that
would be bigger and better than the one they had. This led to a rise in materialism and consumerism
in India.

CAUSES OF BRAIN DRAIN

Economic opportunities including new and better jobs, higher standards of living, access to housing
and health care, Political strife and instability ,Persecution based on religion, gender, or sexuality.

Lack Of Opportunity in Higher Education: One of the reasons for Indian students moving abroad can
be the tough competition to get into premiere Indian universities.

Employment Opportunities and Higher Pay: The job market in India is highly competitive. Every year,
lakhs of new job seekers enter the market and jostle to find opportunities in the best companies.
With so many people fighting for jobs, the salaries come down significantly as more and more people
are willing to work at lower wages. Salaries in India for the same role stand in stark contrast with
salaries in Europe, the US, or other international destinations.

Taxation Policy: The high rate of tax and complexity of the regulatory regime in India may also be a
factor that has seen the growth in HNIs migrating to other countries.

Visa Programme: The key factor for increasing Indian students studying abroad is the success of the
work visa programs provided to international students and graduates. Between January and
September 2021, almost 115,000 Indian students received approval to study in Canada, and during
the previous five years, Indian PGWP applicants had an approval rate of more than 95%.

Standard of Living: They migrate to first-world countries for better living standards, higher salaries,
and access to advanced technologies to enhance future growth. India is placed in the Medium
Human Development category. In the 2022 report, India had 0.645 and was ranked 131 among 189
countries.

The rise of Millennials and Zillennials: The Youth (GEN-Z) challenging the antediluvian status quo.
Those who go to study abroad, therefore choose to remain there. But they are also aware of Climate
Change, gender discrimination, sectarian warfare, authoritarian bullying, rising crime graph, and
political radicalism. It is, therefore, hardly a surprise that the highest immigration exits are happening
from China, Russia, and India, along with Iran, Qatar, and Hong Kong.

Political Instability: Uncertainty in the political landscape can lead to a loss of confidence in the
country's future, prompting some to seek stability abroad.

Globalization: Increased globalization has made it easier for skilled professionals to explore
international opportunities and network with global peers.

EFFECTS OF BRAIN DRAIN ON INDIAN ECONOMY

The effects of brain drain are felt not only in the area where the brain drain occurs but also where
brain gain occurs: the place to which individuals move. It can often have a chain reaction.

Areas affected by brain drain end up with a dearth of human capital. Professionals who go elsewhere
end up leaving a large gap behind, one that isn't always easy to fill. Consider medical professionals in
developing nations who move to parts of the developed world for better opportunities. There may
not be enough qualified people to replace them when they leave. This affects the overall quality of
health care.

Another effect on areas that experience brain drain is the loss of revenue. Governments rely on
income taxes to fund their social programs and infrastructure projects. A mass exodus leads to a drop
in tax receipts that can stunt economic growth and development.

Areas that see brain gain are also impacted. They can experience overcrowding, especially in major
metropolitan areas where more opportunities are available. A lot of people in one area puts a strain
on resources and this can lead to higher prices and taxes.

Negative Effects:

Loss of Talent: The departure of skilled professionals in fields like technology, medicine, and
engineering results in a talent deficit, hampering innovation and productivity.

Reduced Economic Growth: A diminished workforce can slow down economic growth, as fewer
skilled workers mean lower overall productivity and output.

Impact on Sectors: Critical sectors, particularly in healthcare and education, may suffer due to
shortages of qualified professionals, leading to a decline in service quality.

Increased Dependency: The loss of human capital may force companies and the government to rely
on foreign talent, increasing costs and dependency on external expertise.

Brain Waste: Many emigrants may not utilize their full potential in the host country, leading to
underemployment and wasted skills.
Positive Effects:

Remittances: Emigrants often send money back home, which can significantly boost local economies
and improve living standards for families.

Global Networks: Indian professionals abroad can create valuable international connections that
facilitate trade, investment, and knowledge transfer back to India.

Return of Knowledge: Some expatriates return with new skills, knowledge, and experiences that can
benefit the Indian economy and drive innovation.

Increased Educational Opportunities: The pursuit of education abroad can lead to better-trained
individuals returning to contribute to the Indian economy.

IMPACT OF BRAIN DRAIN ON INDIAN ECONOMY

 Loss of Talent: When skilled professionals leave, India loses valuable human capital that could
contribute to innovation, research, and development. This can hinder progress in key sectors like
technology, healthcare, and education.

 Economic Growth: The departure of skilled workers can slow down economic growth. These
individuals often play critical roles in driving industries and creating jobs, so their absence can lead to
reduced productivity.

 Remittances: On the positive side, many Indians working abroad send remittances back home,
which can support local economies. However, this does not fully compensate for the loss of skilled
labor.

 Innovation and Competitiveness: A reduced talent pool can affect India's competitiveness on the
global stage. Fewer innovators and entrepreneurs may result in slower advancements in technology
and business.

 Investment in Education: The phenomenon can lead to increased investment in education and
training as the government and institutions recognize the need to retain talent and develop skills that
match global demands.

 Brain Gain: Conversely, brain drain can also lead to a "brain gain" when expatriates return to India
with enhanced skills, networks, and capital. This can bring fresh ideas and perspectives that benefit
the economy.

 Social Impact: The outflow of talent can create social challenges, including a demographic
imbalance and the potential for increased inequality, as those who leave may come from more
affluent backgrounds.

ADVANTAGES AND DISADVANTAGES OF BRAIN DRAIN ON INDIAN ECONOMY