The Indian diaspora’s development is deeply intertwined with the historical context of colonialism, particularly British colonial rule in India but also its colonial trade. This relationship can be understood through various dimensions, including migration patterns, political, and socioeconomic impacts, as well as cultural identities that emerged as a result of colonial policies and practices. The migration of Indians to various parts of the world, including the Caribbean, Africa, and Southeast Asia, was significantly influenced by colonialism. It had elements of forced migration representing indentured labor migration (Cohen, 2008). The British Empire facilitated the movement of Indian laborers to work on plantations and in other sectors where labor shortages existed due to the abolition of slavery. This migration was often characterized by coercive practices and economic necessity, leading to the establishment of Indian communities in these regions. As Sharma (2024) notes, by the end of the 19th century, around 1.3 million Indian indentured laborers had migrated to British colonies of Mauritius, British Guyana, Jamaica, Trinidad, Fiji, St. Lucia, Grenada, St. Vincent, St. Kitts, and South Africa but also to French colonies of Guadeloupe, French Guyana, Réunion and Martinique, Danish St. Croix, as well as to Dutch Suriname. The legacy of these migrations is evident today, as many descendants of these laborers maintain cultural ties to India while also integrating into their host societies. This historical migration represents the fundament of the contemporary Indian diaspora.

The socioeconomic impacts of colonialism on the Indian diaspora are multifaceted regarding economy and business. As elsewhere, diaspora remittances sent back have played a crucial role in supporting families and communities in India, contributing to local economies and development initiatives (Mohapatra & Ratha, 2011). Furthermore, the skills and knowledge acquired by Indian migrants abroad have often been transferred back to India, fostering a cycle of development that continues to this day. This is referred to as triangular human talent flow (Tung, 2008). Culturally, the Indian diaspora has retained elements of its heritage while also adapting to new environments, a process that can be traced back to the colonial era (Chand, 2012; Shah, 2022). The diaspora’s cultural expressions often blend traditional Indian elements with local influences, creating unique identities that resonate with both their ancestral roots and their current contexts. The legacy of colonial rule has shaped not only the migration experiences of Indians but also their ongoing contributions to both their host societies and their homeland. Colonial past and cultural differences of the multiethnic country remain impactful in recent Indian political and economic developments. There are notable ethnoregional differences that reflect themselves also in diaspora. These are reflected also in transnational politics. A survey of Indian-Americans in 2020 by the Carnegie Endowment for International Peace, an American think-tank, found that while 48% approved of Mr Modi, 31% disapproved, and 22% strongly so. Indeed, the diaspora is much less enthusiastic than Indians in India, 78% of whom are said to approve of him. One explanation relates to the consumption of news and media that differs in diaspora. Moreover, an increasing number of migrants is from South India, representing different preferences. Such ethnoregional diaspora elements deserve more detailed attention outside India, particularly in European receiving countries that are less exposed to these complexities.

The Indian diaspora is distributed across the globe as a global diaspora. There are several major destination countries that have historically attracted Indian migrants and their activities (Alcaraz et al., 2020). Not surprisingly, in the European context, it has been the UK that has been the hotspot and gateway in the diaspora development. Industrialized countries in the Global North have played an important role as diaspora destinations (Bailey & Mulder, 2017). The United Kingdom is a major hub in size and scope. Asians make up just over 4.5% of the total UK population, which was about 3,078,374 out of nearly 67,806,970. From these figures, nearly 2.14% were Indians in 2021. Geographically, there are diaspora-specific areas. For example, South Hall is dominated by the Punjabi and Sikh communities, while Tamils are concentrated in North London, and Gujaratis live primarily in cities such as London and Leicester (Sharma, 2023b). The migration of Indians to the UK increased after World War II, driven by labor shortages and the promise of better economic opportunities. The Punjabi community, in particular, has established a strong presence in the UK, contributing to the sociocultural fabric of British society while maintaining connections to their Indian heritage (Chanda & Ghosh, 2012b). The recent political developments, such as Brexit, have raised questions about the future of Indian migrants in the UK, particularly concerning immigration policies and rights (Tripathi, 2021).

There is very limited research focusing on Indian diaspora in the EU. Yet, some countries have larger and more idiosyncratic diaspora patterns than others, the Netherlands being one such example. The diaspora in the Netherlands consists of over 200,000 people of Indian origin, mostly migrants from Suriname who are descendants of those who migrated from India in the late 19th century on indenture contracts, with an evident link to the colonial past. In the Netherlands, the Indian diaspora is the second largest in Europe, numbering around 235,000 individuals, including 35,000 Indians and 200,000 Suriname-Hindustani communities of Indian origin (Bal, 2003; MEA, 2019). These communities trace their roots back to indentured laborers who migrated from British India to Surinam and later to the Netherlands during the 1970s and 1980s (Bal, 2012). While the new Indian diaspora in the Netherlands includes skilled professionals, the Suriname-Hindustani community maintains a distinct cultural identity, often blending Hindu traditions with Western culture (Sharma, 2023b).

The Indian diaspora is quite unevenly spread across the European context representing the third wave of contemporary Indian migration (Sharma, 2014). There is more than a million in the UK, only a few thousand and hundreds in some countries, and less than a hundred in countries such as Macedonia. In the last few decades, Indians have migrated to Germany (in the high-tech sector) and Belgium (diamond industry), and more recently, there have been substantial migration taking place to Spain and Italy (Sharma, 2024). The Indian diaspora in France and across Europe displays diverse migration patterns and cultural integration, with contributions in various economic sectors. The Indian community in France is primarily composed of two groups: migrants from India and those of Indian origin who have lived in the country for over a century. It is estimated that approximately 109,000 Indians reside in mainland France, with a large proportion hailing from the French enclaves of Puducherry and Tamil Nadu. In addition, around 350,000 people of Indian origin live in the French Overseas Territories, such as Reunion Island, Guadeloupe, Martinique, and Saint Martin, where their ancestors migrated as indentured laborers (MEA, 2020). The Indian diaspora in Reunion Island, in particular, has a distinct identity, blending French nationality with strong cultural ties to India, including language, religion, and traditions (Dutta, 2012). The community in this region is prosperous and highly educated.

Germany’s Indian diaspora, although smaller in number (approximately 200,000), includes highly skilled professionals in IT, finance, and medicine, with a notable presence of students from India pursuing education in German universities (MEA, 2020). Today, Indians are the largest group of foreign students in Germany, benefiting from free tertiary education and especially pursuing STEM degrees. For almost 10 years, Indians are also the largest group of foreign employees in STEM professions, both in companies but also at research institutions, following the earlier inflow of Indian students (Handelsblatt Shift, 2025) Like in the US, the median income of Indians is roughly 30% higher than the overall German median (Plünnecke, 2024). The community has maintained its traditional values while adapting to the mainstream German culture (Gottschlich, 2012). In Italy, the Indian diaspora has grown to over 200,000, with many originating from Punjab. These migrants are primarily engaged in agriculture, dairy farming, and the leather industry (Tumbe, 2018). One notable sector dominated by Indian migrants is dairy farming, where they have established a significant presence (Sahai & Lum, 2013).

Overall, the Indian diaspora across Europe, particularly in the UK, France, the Netherlands, Germany, and Italy, is economically successful, well integrated and contributes significantly to the local economies. Despite being a small percentage of the population in many countries, the Indian community has maintained a strong cultural identity while also adapting to and benefiting from the professional and educational opportunities in Europe (Sharma, 2023a). Thus, the EU context is of interest, as relative limited research has been done on the context and on those reasons that have attracted and continue to attract Indian migrants to the EU member countries or on the success factors of Indian diaspora turning from indentured labor diaspora into a more trade and business diasporas (Cohen, 2008). Sharma (2024) argues that the pull factors are similar across the countries in Western Europe with few variations, implying more general dynamics like the Blue card. The interests from the receiving side relate to the demographic deficit, ageing population, and lack of workers. Many Western European countries rely upon professional workforce from developing countries to fill employment gaps to the extent that recently government-to-government migration deals are being negotiated, for example, for nursing and elderly care. Hence, it is no surprise that skilled Indians and other South Asians may find ample opportunities in Western European countries, particularly when supported with information by their extant global diasporas.

The Indian diaspora in Europe is characterized by a diverse demographic and ethnic profile, encompassing various age groups, genders, ethnic, linguistic, and religious origins. Understanding these characteristics is crucial for comprehending their socioeconomic dynamics and contributions, as Indian diaspora is by no means a homogenous diaspora, or a “monolith,” a view often criticized in diaspora research.

First, the age distribution of the Indian diaspora in Europe varies significantly, with a substantial representation of young professionals, particularly in sectors like IT, healthcare, and academia. Many are young adults, often in their 20s and 30s, who move for educational and employment opportunities. This trend aligns with the global pattern of skilled migration, where younger individuals seek better prospects abroad (e.g. Van Mol, 2016). Their socioeconomic status in Europe is influenced by their age, gender, and ethnic backgrounds as these relate to their careers, networks, and development opportunities. Younger migrants, particularly those with higher education and professional qualifications, tend to achieve better socioeconomic outcomes, often securing stable employment and contributing significantly to the economies of their host countries (Bailey & Mulder, 2017). Conversely, older migrants or those from less privileged backgrounds face challenges related to employment and integration, particularly if they lack language skills or formal qualifications recognized in Europe. For example, there are problems with the recognition of non-EU qualifications that have created structural discrimination for non-EU professionals. This disparity highlights the importance of targeted policies and support systems to assist various segments of the diaspora in achieving equitable socioeconomic status (Tripathi, 2021; Vintila & Lafleur, 2020).

Second, in terms of gender, the Indian diaspora exhibits a relatively balanced distribution with some sectoral differences. For instance, the IT and engineering fields tend to have a higher proportion of male professionals, while healthcare and hospitality sectors often see a more balanced or even female-dominated workforce (e.g. Christou & Kofman, 2022; Sharma, 2011). The increasing participation of women in higher education and professional fields has contributed to a growing number of female migrants, particularly in healthcare and academia (Kothari & Roldan, 2022; Vammen & Brønden, 2012).

Third, the Indian diaspora in Europe is not ethnically homogenous; it comprises individuals from various ethnic and tribal backgrounds. Major ethnic groups include Punjabis, Gujaratis, Tamils, and Bengalis. There are rather blurred boundaries in reflecting Indianness in diaspora as there are many mixed families with Bangladeshi and Sri Lankan heritage as well. Each ethnic group brings its unique cultural heritage, traditions, religions, and languages, contributing to the rich tapestry of the Indian diaspora in Europe. For example, Punjabis are notably prominent in the UK, particularly in cities like London and Birmingham, where they have established vibrant communities and business ecosystems (Gupta & Kumar, 2020; Robertson et al., 2018). There are internal divides, for example, related to smaller but significant populations from tribal backgrounds, particularly from regions like Jharkhand and Odisha. Minority groups often migrate for labor opportunities and may face unique challenges related to integration and cultural preservation in their host countries (Sarkar, 2023). The diversity within the Indian diaspora reflects the broader social and cultural complexities of India itself, where numerous ethnicities and tribes coexist in different regions with unlike power relations. Furthermore, some diasporans argue that the caste system still implicitly influences Indian diaspora. Distinct ethnocultural diaspora identities develop over time, for example, those of Indian imperial labor diasporas (e.g. indentured labor) or Sikh diasporas (Cohen, 2008). This superdiversity may create additional challenges for the diaspora management and governance, for example, through language and sociocultural differences (Jain, 1998; Sahradyan & Elo, 2019).

The contemporary Indian diaspora in Europe is characterized by a wide range of occupations, professions, and businesses, reflecting the varied skills and backgrounds of its members. This diaspora has made significant socioeconomic contributions to their host countries while also maintaining strong ties to their homeland and its transnational business ecosystems (Pruthi et al., 2018; cf. Sonderegger & Täube, 2010). The extant literature identifies the following categories of occupations and sectors as central in the Indian diaspora, see Table 1.

The socioeconomic status of the Indian diaspora in Europe varies widely, influenced by factors such as education, professional qualifications, and immigration status. Notable business tycoons of Indian origin in Europe include Lakshmi Mittal, the steel magnate and chairman of ArcelorMittal, Anil Agarwal, founder of the Vedanta Group, Jasminder Singh, chairman of Edwardian Hotels. The Hinduja family, led by Gopichand Hinduja, stands as the wealthiest Indian-origin family in Europe (Prakash, 2022). Interestingly, the visa policies have contributed to a broad inflow of different talents that build on both incoming new migrants in expanding Indian diasporas but also on Indian students who choose to remain in the European context after they graduate. Similarly, as skilled migrants, also the number of Indian students entering Europe is growing. In Germany, for instance, there was a 25% increase in Indian student visas in 2022 (Biju & Bijulal, 2024). The UK, Netherlands, and France also feature prominently, each attracting thousands of students annually only from the Kerala region. According to Biju and Bijulal (2024), there lies a complex interplay of factors behind this increase. One of them being that Kerala depicts a high literacy rate and a deeply ingrained reverence for education, propelling its youth toward postgraduate pursuits (Biju & Bijulal, 2024). These growing inflows of young talent migrating for the quest to further their education and knowledge are a glaring indicator of growth in future skilled talent and innovative entrepreneurial ecosystem of the region.

The socioeconomic development of Indian diasporans is interesting. In Europe, Indian diaspora has been able to employ its talent potential and prosper through entrepreneurship that is more opportunity pulled than the often necessity-pushed migrant entrepreneurship (Baycan-Levent & Nijkamp, 2009). However, just like other diasporas, Indian entrepreneurs need to overcome liminalities (Elo et al., 2024). Many Indian professionals enjoy a middle- to upper-middle-class lifestyle, characterized by stable employment, home ownership, and access to quality education for their children (Vammen & Brønden, 2012). However, challenges remain for certain segments of the diaspora, particularly those engaged in low-skilled labor or informal sectors. Particularly issues such as job insecurity, lack of access to social services, and discrimination can impact their socioeconomic status. Moreover, recent research has found that the COVID-19 pandemic exacerbated migrant vulnerabilities, highlighting the need for better support systems and policies to protect their rights and well-being (e.g. Roy et al., 2024). These systemic disruptions in mobility and travel influenced Indian families, businesses, and transnational entrepreneurs.

The Indian diaspora has brought in aggregated diaspora capitals establishing several ethnic enclaves and economies across diverse host countries and regions in Europe. These communities play a role in local and transnational business ecosystems, reflecting their cultural heritage and diverse economic roles (Hall, 2020; Villares et al., 2017). Such enclaves serve as hubs for social, cultural, and economic activities, significantly influencing the local business fabric and fostering community ties. The review highlights famous ethnic enclaves like Brick Lane, known for its vibrant Indian and Bangladeshi communities. This area is renowned for its Indian restaurants, shops, and cultural festivals, making it a focal point for South Asian culture in the UK. The concentration of Indian businesses has not only created jobs but also attracted tourism contributing to the local economy (Chanda & Ghosh, 2012a and b; Shah, 2022). Southall is another significant Indian enclave, primarily populated by Punjabis. The area is characterized by its Indian grocery stores, clothing shops, and restaurants. Southall’s economy thrives on the patronage of both the local Indian community and visitors, making it a vital economic center for Indian businesses in London (Chanda & Ghosh, 2012b). Leicester has a large Indian population, particularly from the Gujarati community. The city has become known for its Indian festivals, such as Diwali, and has a thriving market for Indian goods and services. The presence of Indian businesses contributes significantly to Leicester’s economy, making it one of the most diverse cities in the UK (Chanda & Ghosh, 2012b). In France, the Indian diaspora is concentrated in areas like La Chapelle and Gare du Nord, where Indian shops and restaurants are prevalent. These neighborhoods serve as cultural hubs for the Indian community, offering traditional foods and cultural events that enhance the multicultural fabric of Paris (Chanda & Ghosh, 2012b).

In terms of business ecosystems, catering and hospitality represent domains where Indian diaspora has had a major impact across Europe, developing the concept of ethnic food. Today, Indian restaurants are prevalent in major cities, providing employment opportunities and contributing to the culinary diversity. This rapid development has reached also smaller cities and municipalities. It serves local population while promoting Indian cuisine globally (Chanda & Ghosh, 2012a and b; Shah, 2022). Following diaspora business patterns, retail and grocery stores represent notable businesses in the Indian diaspora. Indian-owned grocery stores and retail outlets cater to the needs of the diaspora and the broader community of migrants as well as mainstream markets. These businesses specialize in Indian spices, ingredients, and cultural products, creating a niche market that supports both the local economy with new ethnic consumerism and contributes to the maintenance of the cultural identity of the Indian community (Chand & Tung, 2014; Chanda & Ghosh, 2012a and b).

Many Indian professionals in Europe work in the technology sector, contributing to innovation and economic growth, for example, via software, app, and AI development. Indian IT firms and startups have established a presence in cities such as London and Berlin, creating numerous jobs and fostering collaboration between India and Europe in technology and innovation (Crescenzi & Rodríguez-Pose, 2017; Kothari et al., 2013). This is also witnessed in Germany, where the initial inflow of Indian students into the free German college and university ecosystem was facilitated by an increasing number of English-speaking degrees and further accelerated after Brexit. Thereby, particularly science, technology, engineering and mathematics (STEM) students laid one pillar for the following increase of Indian employees in STEM research, innovation, and corporate jobs (Plünnecke, 2024).

Indian diaspora also plays a role developing healthcare services and solutions. It has a significant presence in the healthcare sector, with many Indian doctors and healthcare professionals working in hospitals and clinics across Europe. Their contributions are vital in addressing healthcare needs, particularly in countries facing shortages of medical professionals highlighted the intertwined nature of diaspora (Emmanuel et al., 2019). In sum, the diaspora roles are impactful on multiple levels across economic sectors contributing to their developments.

The economic impact of these Indian diaspora members in Europe is significant and complex, influencing both the host countries and India itself (Kotabe et al., 2013; Kothari & Roldan, 2022; Sonderegger & Täube, 2010). The impact can be analyzed through various dimensions, including contributions to labor markets, consumption, entrepreneurship, investments, trade, remittances, and cultural exchange.

Labor market contributions represent a growing impact in many European countries. The Indian diaspora contributes to many host country labor markets on different skill levels representing highly skilled professionals, particularly in sectors such as IT, engineering, and healthcare. Their expertise fills critical gaps in the labor market in countries facing skill shortages. For instance, Indian IT professionals have been instrumental in the growth of the tech industry in the UK and Germany, driving innovation and productivity (Plünnecke, 2024). Furthermore, they enhance the competitiveness of local industries by fostering economic and business development and generating spin-off and service businesses.

Indian diaspora entrepreneurship as new high-growth entrepreneurship potential is well recognized, since Saxenian’s (2002) study made them visible in the USA. She found that two thirds of the region’s foreign-born engineers were from Asia. Chinese and Indian immigrants accounted for 74% of the total Asian-born engineering workforce there, while the role of Indian entrepreneurs was central in developing Silicon Valley to what it is (Saxenian, 2002). Generally, Indian diaspora is known for its entrepreneurial spirit, with many individuals establishing businesses in Europe following the US patterns (Kothari, 2021). Indian-owned enterprises contribute to job creation and economic diversification in their host countries. Furthermore, there are numerous investments and acquisitions from Indian conglomerates; some of them are family firms, such as TATA group or MITTAL group (Kotabe & Kothari, 2016). For example, Arcelor, Valtra, Hansen Transmissions International, or Betapharm illustrates such cases.²

Indian entrepreneurship in the EU is a dynamic and growing phenomenon influenced by local economic conditions, immigration policies, and the presence of diaspora and community support networks. The number of Indian entrepreneurs and investors in the EU varies significantly across member states, reflecting both regional economic opportunities and cultural factors (Melber, 2022). The general overview of Indian entrepreneurship in key EU countries highlights growth trends in different sectors and particular destinations. For example, the growth of Indian startups and, notably unicorns, hailing from the Indian Institutes of Technology, made Indian (nascent) entrepreneurs a target for several startup centers at high-profile German universities aiming to foster their own tech entrepreneurship with scaling options toward the Indian market.

Destination ecosystems emerge and influence specific geographic areas and cities. In the United Kingdom, an estimated 800,000 individuals of Indian descent reside, with a substantial proportion engaged in entrepreneurship. Key sectors include IT, hospitality, and retail, particularly in major urban centers such as London, Birmingham, and Manchester (Office for National Statistics, 2023). Similarly, in Germany, the Indian community numbers approximately 150,000, with a growing number of entrepreneurs concentrated in the technology and engineering sectors. Major cities such as Frankfurt, Berlin, and Munich are focal points of this entrepreneurial activity (Deutsche Bank, 2022). The Netherlands hosts around 250,000 individuals of Indian origin, many of whom have established businesses in IT, logistics, and trade. Amsterdam and Rotterdam are the primary hubs for these entrepreneurial endeavors (Bajeli-Datt, 2022). In France, the Indian population is estimated at 120,000, with diasporans running businesses in the retail, technology, and hospitality industries, especially in Paris and Lyon while there is also significant West Indian population (French National Institute of Statistics and Economic Studies, 2012). In Ireland, the Indian community numbers approximately 30,000, with a burgeoning number of entrepreneurs focusing on technology and finance. Dublin and Cork are key cities for Indian entrepreneurs in these fields (Central Statistics Office, 2023). Italy, with an Indian population of about 160,000, illustrates diasporans engaged in small businesses, particularly in the food and retail sectors. Lombardy, Veneto and Lazio regions host the main settlement while Milan and Rome are the main areas of entrepreneurial activity (Ministero del Lavoro, 2023). In Spain, the Indian community with its multiple origins is estimated around 40,000, with entrepreneurship primarily concentrated in retail and hospitality sectors, particularly in cities such as Barcelona and Madrid (LÓPEZ-SALA, 2013). In Sweden and Finland, a combined total of around 20,000 individuals of Indian descent are engaged in entrepreneurial ventures, with a strong focus on technology and innovation. Stockholm and Helsinki represent the central hubs for these activities (Embassy of India, 2025; Business Finland, 2025).

These figures underscore the diversity and adaptability of Indian entrepreneurship influencing the European business, driven by a combination of economic opportunities, immigration trends, and the supportive resources, largely provided by Indian diaspora networks (cf. Lorenzen & Täube, 2008). Understanding the distribution and sectoral focus of Indian entrepreneurs in Europe informs policymakers and business leaders to tailor strategies to foster further growth and integration of these communities into the European economic landscape.

Indian investments in the EU are mainly entrepreneurial or building on mergers and acquisitions leveraging diaspora capitals (Kotabe et al., 2013). They are distributed across sectors and countries, reflecting both economic opportunities and strategic business interests. For example, in the United Kingdom, Indian investments are prominent in sectors like technology, with major companies such as Tata Consultancy Services (TCS) and Infosys operating in London and Manchester. The automotive sector shows substantial investments, for example, Tata Motors has a large manufacturing facility in Coventry. The pharmaceutical industry is represented by firms such as Sun Pharma and Dr. Reddy’s, which focus on manufacturing and research and development (R&D). In Ireland, Indian tech companies, including Infosys and Wipro, have established significant operations in Dublin, benefiting from Ireland’s skilled workforce and favorable corporate tax environment. Irish pharmaceutical and biotechnology sectors are also seeing growing Indian investments, with companies like Cipla expanding their presence. As identified by Kotabe and Kothari (2016), these Emerging Market Multinational Companies (EMNs) are examples of Indian companies that have built a competitive advantage from their emerging market home nations to developed countries in the Europe and the USA.

Beyond the English-speaking destinations, Germany has attracted significant Indian investments, particularly in the automotive and engineering sectors. Companies such as Tata Motors and Mahindra & Mahindra have invested in manufacturing facilities and collaborations with local German firms. IT services and engineering solutions are key areas of investment, with firms such as Wipro and Infosys expanding operations in Frankfurt and Munich. The renewable energy sector has seen increased Indian investments, often in partnership with German companies. The Netherlands has a particular status, serving as a key logistics and trade hub for Indian companies, with notable investments in ports and distribution centers, especially in Rotterdam. Indian tech startups and partnerships are growing in cities like Amsterdam, investing in fintech and digital services. The pharmaceutical sector sees investments from Indian firms that establish operations for distribution and R&D, capitalizing on the Netherlands’ strategic location within Europe. France receives Indian investments in aerospace and defense, with companies like Hindustan Aeronautics Limited (HAL) collaborating with French firms. IT services companies such as Tech Mahindra have increased their presence in France, providing consulting and services. In Italy and Spain, Indian investments are found in the fashion and retail sectors, for example, in cities like Milan and Barcelona as brands explore collaborations and market entry strategies. Italy and Spain have also seen growing investments in renewable energy projects, particularly in solar energy. Nordic context is emerging. There, Sweden and Finland have become important destinations for Indian technology investments, with firms establishing R&D centers focused on telecommunications and software innovation.

Transnational business development and bilateral relations fuel economic impacts. For example, the EU-India Innovation Center was built up with a European funded project from 2021 to 2023 offering expertise and growth for governments and startups. This center specializes in “empowering European startups for successful entry and expansion into the vibrant Indian market and vice versa.”³ Diaspora established firms, particularly in the early development, often serve in multiple ways, for example, as cultural hubs, promoting Indian cuisine, arts, and traditions, which enrich the local economy and foster multiculturalism. The following diaspora waves leverage the knowledge and follow-up as second and third wave movements in high-tech and knowledge-based businesses. Saxenian (2002) suggested that the challenge for policy makers is to recognize these mutually beneficial connections between immigration, investment, trade, and economic development, which represents a challenge in the European context. Kotabe et al. (2013) highlighted specific conditions enabling Indian diaspora to become instrumental for international business and India’s development into a tech nation.

Another significant aspect of diaspora is international trade facilitation (Chand, 2012). When reflecting the trade between the EU and India, the impact behind the significant growth becomes evident. According to the European Commission, the EU is India’s largest trading partner, accounting for €124 billion worth of trade in goods in 2023 or 12.2% of total Indian trade, topping the USA (10.8%) and China (10.5%). The EU is the second-largest destination for Indian exports (17.5% of the total) after the USA (17.6%), while China only ranks fourth (3.7%). This is a significant position taking in consideration the business and geographic distance. India is the EU’s 9th largest trading partner, accounting for 2.2% of the EU’s total trade in goods in 2023, well behind the USA (16.7%), China (14.6%), or the UK (10.1%). Interestingly, the trade in goods between the EU and India has increased by almost 90% in the last decade. This is an unusually high growth happening simultaneously with the growth and expansion of the Indian diaspora. In terms of value, trade in services between the EU and India reached €50.8 billion in 2023, up from €30.4 billion in 2020. There seems to be some discrepancy in the trade and investment dependencies and the temporal process. The EU’s share in foreign investment stock in India reached €108.3 billion in 2022, up from €82.3 billion in 2019, making the EU a leading foreign investor in India. As the European Commission notes, this is significant but way below EU foreign investment stocks in China (€247.5 billion) or Brazil (€293.4 billion). Still, the impact of European companies in India is growing. Some 6,000 European companies are present in India, providing directly 1.7 million jobs and indirectly 5 million jobs in a broad range of sectors.⁴

As trade and investments illustrate, not only do human talent flows follow a triangular pattern, but business and financial impacts also move in multiple directions (Tung, 2008). The remittances sent back to India represent one of the most direct reverse impacts of the Indian diaspora. These remittances play a crucial role in the Indian economy, contributing to household incomes and supporting local businesses. According to estimates, Indian migrants in Europe send substantial amounts of money back home, which aids in poverty alleviation and stimulates economic growth in various sectors, including education, healthcare, and housing. The World Bank has highlighted that remittances are a vital source of foreign exchange for India, helping to stabilize the economy and improve living standards for many families. According to the World Bank data, India received the highest remittances of 119,526,055.01 US dollars in 2023.⁵

Further, diasporas exercise soft power in diplomacy, business, and cultural exchange. The Indian diaspora enhances cultural exchange between India and Europe, contributing to India’s soft power. Cultural festivals, culinary events, and educational initiatives organized by the diaspora promote Indian culture and foster goodwill between nations and people (Chand & Ghorbani, 2011). This cultural diplomacy strengthens bilateral ties and enhances trade relations and transnational business, as cultural understanding often leads to increased economic cooperation. The diaspora’s role in promoting Indian culture abroad can lead to greater demand for Indian products and services, benefiting the Indian economy. The role of Indian food, Bollywood movies, and tourism is contributing to cultural exchange and intercultural connectedness.