Editor's Note: India's 'Brain Drain' is Hurting its Economic Future

The story goes that in the early 1970s, a young Indian engineer named Vinod Dham left the country with $8 in his pocket. Born into a family of modest means soon after Partition, Dham had an exceptional mind, but newly independent India, struggling with economic hardship, could not provide the infrastructure he needed to thrive.

In his mid-20s, Dham moved to the US, where he led the development of the Pentium chip that drove the personal-computing revolution. Today, India takes immense pride in his achievements, but the reality remains that Dham’s research was made possible in the well-funded, advanced laboratory of a foreign company.

More than seven decades later, the story remains much the same. In 2024, 70% of all students that left India in pursuit of better research and career opportunities abroad held STEM degrees. The exodus of India’s brightest minds has led to Indian-origin leaders dominating the global technology sector, heading companies such as Google, Microsoft, Adobe and IBM. These individuals drive innovation, helping their organisations that generate super profits sit at the very top of the value chain.

For over a century, Indians have emigrated in search of a better life and as a nation, we bask in the reflected glory of an Indian-origin professional rising to the rank of chief executive in a multinational corporation. It gives many families the hope that one day, someone from their household, will achieve similar success in a foreign land.

But while Indians abroad contribute to their home economy through remittances, their greater impact is felt in their adopted countries, where they help build the technologies that make advanced economies wealthier. The US, Europe, and even countries like UAE and Taiwan are rolling out the red carpet for Indian talent, while India struggles to keep pace in critical areas such as artificial intelligence, biotechnology and semiconductor development.

If India is serious about its ambition to become a developed nation by 2047, it can no longer afford to be just an exporter of human capital. The challenge is not merely to stop talent from leaving, but to create an ecosystem that makes them want to stay.

Our cover story this month delves into how this ongoing brain drain is hurting India’s superpower ambitions and why policymakers must address the issue on a war footing.

As we look towards India’s economic future, our Budget coverage features exclusive interviews with three secretaries and the chief economic adviser of India, offering insights into the government’s vision for growth, while our women’s special issue focuses on the silver lining in discussions about automation and job losses. As robots take over physically demanding tasks on the shop floor, Indian companies are employing more women in manufacturing, raising hopes of increasing female labour force participation in the country.

Our monthly Bharat Start-up series showcases how female entrepreneurs are carving out their space in India’s evolving business landscape.