A STUDY ON BRAIN DRAIN IN INDIA

Submitted by,

Suraj.M

Grade XII

Title of content
ACKNOWLEDGEMENT 
 I would like to express my special thanks of gratitude to my

Teacher “Miss.Lavanya’’ The Indian Public School (CBSE) CBE.

For their able guidance and support In completing my project

throughout the academic year.

I extent my sincere thanks to Mrs.Chitra Nair, Principal, The Indian Public

School  – CBSE Campus, Coimbatore for her constant guidance and valuable

advice during  the course of the study

SYNOPSIS
According to Oxford Advanced Learner’s dictionary Brain Drain is “the movement
of highly skilled and qualified people to a country where they can work in better
conditions and earn more money”. Brain-drain can also be named as “human
capital flight” because it resembles the case of capital flight, in which mass
migration of financial capital is involved. Indian Diaspora is a geographically
diversified Diaspora, which is spread in as many as 110 countries. The
Government of India estimated that there are 30 million Indian Diaspora spread
across the world. The 30 million Indian human resources who is working for the
developed countries are highly skilled. India generating valuable human capital
with our valuable money which is collected from the tax payers. But the tragedy is
India is sending the skilled human resource for the development of developed
countries. India is becoming a major supplier of human capital for the advanced
economies. India is sending large numbers of these specialists compared to other
important origin countries. Brain drain is the current socio-economic problem of
our country.

The main objective of this study is to find out causes and problem of brain drain in
India. The study also focuses on the socio-economic aspect of brain drain . Both
primary and secondary data is used for this study. Primary data is collected through
a questionnaire.

I. INTRODUCTION
Cambridge Online Dictionary defines “when large numbers of educated and very
skilled people leave their own country to live and work in another one where pay
and conditions are better”.. Brain-drain can also be named as “human capital
flight” because it resembles the case of capital flight, in which mass migration of
financial capital is involved. Brain drain is usually regarded as an economic cost,
since emigrants usually take with them the fraction of value of their training
sponsored by the government or other organizations. It is a parallel of capital
flight, which refers to the same movement of financial capital. Brain drain is often
associated with de-skilling of emigrants in their country of destination, while their
country of emigration experiences the draining of skilled individuals. Brain-drain
can have many reasons, for example-political instability of a nation, lack of
opportunities, health risks, personal conflicts etc.

The term brain-drain was introduced by observing the emigration of the various
technologists, doctors and scientists, from various developing countries to more
developed nations like USA, UK, Germany, England etc. Now this phenomenon of
brain drain has a conversed effect for a country in which people are getting
migrated and brain-drain of a nation becomes brain-gain for that particular country.
Usually all developing countries including India are suffering from brain drain and
developed countries like USA are having brain gain from this phenomenon. More
or less, all the backward countries are suffering from this problem. India is also
one of the major nations in the world which is suffering from this brain drain
seriously at the present moment.
The UNDP estimates that India loses $2 billion a year because of the emigration of
computer experts to the U.S. Indian students going abroad for their higher studies
costs India a foreign exchange outflow of $10 billion annually. Thousands of
Indian scientists, doctors, engineers and other qualified persons have migrated
and are staying in other countries. Every year hundreds of our best brains make
frantic efforts to leave India. The demand for passports is increasing every year,
even though more and more employment opportunities are being created within
the country. The steady outflow of our nation‟s talent, especially those educated,
at the cost of the tax payers‟ money, has caused concern to the government. Due
to high salary and facilities Indian youth is moving abroad. One reason as to why
the developed countries prosper is because of the high intellectual migrants from
the poor developing countries. This „knowledge gap‟ is increasing and the poor
countries are becoming poorer and rich countries are emerging as knowledge
countries and they are ruling the world. In one other way globalization has helped
in retaining the skilled people within the country, because a person can work for a
foreign company sitting at home in India. But in reality he is working for an
overseas country not for his own nation. Indian Diaspora is a geographically
diversified Diaspora, which is spread in as many as 110 countries. The
Government of India estimated that there are 30 million Indian Diaspora spread
across the world. The nature of settlement of Indian Diaspora can broadly divided
into two parts, namely „old Diaspora‟ and „new Diaspora‟. The prominent
countries that figure in the old Indian Diaspora are Malaysia, Mauritius, Trinidad
and Tobago, Fiji, Guyana, and Suriname and the important countries with the new
Diaspora are all the developed countries like – USA, UK, Canada, Australia and
New Zealand. Apart from these two, a good number of Indians also live in the Gulf
region. The geographical distribution of Indian migrant destination countries is
defined by the level of qualification. The migration flows of the highly-skilled are
oriented towards traditional Indian destinations, namely: the US, Canada, the UK
and more recently toward non-English speaking EU countries. This wave was
accelerated by Indian integration into the world economy. Semi-skilled and
unskilled Indian workers are predominantly concentrated in the high-income
countries of the Gulf Cooperation Council. These migrants have also been viewed
for a long time as key providers of remittances. Current emigrants from India
show an evolution of Indian labour migration, confirmed by the presence of
highly-skilled flows towards the Gulf, a destination traditionally reserved for
unskilled and semi-skilled Indians. The same trend is recorded regarding highly-
skilled flows towards the US, Canada, Australia and Europe where unskilled Indian
migrants mix with more qualified categories.

Objectives of the Study

● To find out the causes of Brain-drain.

● To understand the problem of brain-drain in India.
● To understand the socio-economic impact of brain-drain in India.
● To offer some suitable suggestions to overcome the problem of brain-drain.

Research Methodology

The study is based on both primary and secondary sources of data. Primary data is
collected through a structured questionnaire. Data was collected from 20
respondents. Different books, newspapers and relevant websites like mrunal.org
and Govt. Publications have been consulted in order to make the study effective
one.
 LIMITATIONS OF THE STUDY

The study has a territorial boundary within Coimbatore, which enables us to

collect the opinion of the respondents only within that area.

The respondents’ response may be biased.

The size of the sample was only 20 due to time constraints.

II. CAUSES OF BRAIN DRAIN IN INDIA

There are various reasons for the brain drain in India. The reasons usually include
two aspects which respectively come from countries and individuals. In terms of
countries, the reasons may be social environment (in source countries: lack of
opportunities, political instability, economic depression, health risks, etc.; in host
countries: rich opportunities, political stability and freedom, developed economy,
better living conditions, etc.). In terms of individual reasons, there are family
influence, and personal preference: preference for exploring, ambition for an
improved career, etc. Keeping all these in mind we can identify some causes for
the brain drain in India.

Higher Education :
Higher education in India evolved considerably after independence in terms of
the number of universities as well as in terms of access to higher education.
Nowadays, the number of universities in India has grown some 35 times
comparing to 500 colleges and 20 universities before independence which are
enrolling more than 11 million students, more than 10 times before
independence. Before independence education was limited and elitist: the
current system is though more open with from 30- 40% of enrolments from
coming from the lower castes, and with women representing some 35% of the
total number of students. The impressive increase in higher education has raised
some questions over the adequacy of studies, resources, institutional quality and
standards. Students moving to the abroad is keep increasing. The most preferred
educational destinations are the U.S. and U.K. In the year 2006, of the 1,23,000
studying outside India, 76,000 have chosen USA (94,563 in 2007-2008, 83,833 in
2006-2007) as a country of their choice followed by UK, Canada and Australia.
Most popular foreign universities are University of Southern California, New York
University, Columbia University, University of Illinois at Urbana-Champaign,
Purdue University, Indiana, University of Michigan, Ann Arbor, University of
California, Los Angeles, University of Texas, Austin, Harvard University, Boston
University, University of Pennsylvania.

Employment: -

India has skilled and semi-skilled, employed and unemployed human resource.
Low salaries and inefficient working conditions can be the first motive that
triggers the movement to the countries with better living standards and facilities.
There is huge difference in terms of salary in all three groups of countries namely
developed, developing and underdeveloped. To demonstrate, Skilled workers aim
to get pleasing salaries in return for their labour but the working conditions in
their homeland don't fulfill their wishes. Therefore, those workers prefer to move
another country in order to have better living conditions with high salaries.
Employment is one of the strong reason for brain drain in India.

Lack of opportunities:

In developed countries, researchers are provided with funds and necessary

equipment to carry out study, which can be another motive that attracts those
deprived of these opportunities. Most scientists in underdeveloped countries, do
not possess laboratory facilities and researchers cannot get sufficient funds.
Therefore, when developed countries offer these facilities, researchers and
scientists naturally prefer to migrate to these countries. The internationalization
of knowledge creation and the rapid expansion of R&D activities determined the
diversification of receiving countries for professionals and skilled workers from
India. Traditional migration streams of highly-skilled Indian were directed toward
the United States and the UK. In the 2000s, new non-English-speaking
destinations emerged in Europe such as Italy, France, Germany and other
European countries. The number of skilled Indian migrants moving to Australia,
Canada, and New Zealand also increased.

Favorable migration policies: -

 Increasing economic interdependence among nations, growing demand for
skilled labour in the knowledge economy not to mention demographic trends are
all strengthening the position of India as a major supplier of young, educated and
qualified manpower for the EU. Owing to its demographic profile and its English-
speaking population, India, with its large reserves of highly-skilled workers, has
emerged as one of the most prominent country to fill the supply gaps in the
labour-deficient economies of the developed world. Taking into account EU
economic objectives coupled with demographic and ageing effects, Member
States have put in place selective immigration policies aimed at attracting highly-
skilled professionals and tertiary-level international students from South Asia. In
order to facilitate labour mobility, some EU countries signed labour-mobility
partnerships with India. According to the Ministry of Overseas Indian Affairs, this
kind of agreements was signed with Denmark, and negotiations are ongoing with
other European countries, EU and non EU, including Poland, the Czech Republic,
Norway, Switzerland and Hungary, Sweden and France. There are so many causes
of the brain drain in India. First of all, there is the unemployment problem. Even a
talented person cannot get job. India is lacking in facilities for higher research
work. The top appointments are quite few in India. Thus the talented experts like
to seek new pastures abroad.
 SOCIO – ECONOMIC ASPECTS OF BRAIN DRAIN IN
INDIA
(i) As a Political Problem

When the best of professional manpower leave their home country and
settle in a more developed one, it is a political phenomenon, but it only
rarely occurs that the motives are exclusively political. It involves
peculiar contradiction; it simultaneously indicates the lack of production
and over production of professional manpower on the drained country.
In this sense, brain drain is a symptomatic phenomenon, but at the same
time it is expressive of a fundamental difficulty. The net effect of this is
that the development of science and technology has been accelerated in
the developed countries and has been slowed down in the drained
countries.

(ii) As an Economic Problem

The economic aspect of brain drain derives from disproportionate

economic, technological and scientific development of the developed
and the developing countries. It is characteristic of brain drain that the
more underdeveloped a country is economically, the more it loses by
brain drain while only developed countries profit from the process. The
outflow of our nation's talent, especially those highly skilled, educated
from our premier institutes like IIT's and IIM's, AIIMS and other R & D
institutes at the cost of the "Tax payers" money(in billions) raised a big
question mark on the future prospects of Indian infrastructure
development and various undergoing research works. Due to high salary
and facilities, Indian youth is moving abroad. It is clear from the above
fact that why the developed countries prosper at fast pace because of the
high intellectual migrants from the poor developing countries. This
knowledge gapes increasing and the poor countries are becoming poorer
and rich countries are emerging as knowledge countries and they are
ruling the world.

(iii) As a Social problem

Firstly, the main social problem associated with migration may have
impacts on national identity. The trend over time, such as one can be
discriminated is inherent in ethno-cultural fixtures. Secondly, migration
may have impacts on integration, defined as group outcomes set against
the societal average. Put differently, this about understands the
trajectories of first (and second) generation immigrant performance in a
range of economic and social spheres (employment, housing, health,
social interaction, marriage and so on). Finally, migration may have
impacts on cohesion. This refers to how migration affects
neighborhoods, and is defined by people’s perceptions of how people get
along with each other in their local area or neighborhood.

PROBLEM OF BRAIN DRAIN IN INDIA

Brain drain is a direct loss, of trained experts in many fields, to the

under-developed and poor countries. On the other hand, it is a net gain to
the advanced countries. According to a UNO report, every year
thousands of experts are migrating from backward countries to advanced
countries like USA, UK, Canada, Germany etc. The under-developed
countries are spending millions of rupees on the training of these
experts. But the advanced countries are utilizing their services without
spending any money on their training. Every year, thousands of highly
talented doctors, engineers, scientists and other intellectuals leave India
and migrate to foreign countries. They generally go to U.S.A, UK,
Canada, West Germany, etc for monetary gains and facilities for higher
research. US is the biggest gainer from the loss of India due to brain
drain.

Most of the students who go abroad for higher studies do not return to
India. After seeing, the affluent life of foreign countries they lose all
interest in their own country. Many Indians are teaching at various US
Universities and other Institutions of higher learning. Some of them are
placed on quite lucrative and high posts. There is another attraction of
leading a higher standard of living in foreign countries, because the
technical experts and intellectuals are given special facilities there. In
foreign countries, there is the advantage that while learning a person can
also earn his own living. The stipends in foreign countries are sufficient
enough. A frugal Indian Student living there can also save something to
send home. There is no doubt that India has vast natural and manpower
resources. If both these resources are put to the maximum utilization,
astounding advancement can be achieved in all fields. These technical
and other talented reasons that we lose every year, can greatly help in
the development of our natural resources. The government must take
speedy steps to attract back home these talented sons of India who are
living abroad. These experts can surely help in making India a great
power in the world.

In this connection, even the people should also come forward and
cooperate with the Government in solving this problem. The parents of
the students should not encourage them to go abroad and settle there
even if they are paid high salaries. The doctors, engineers and scientists
owe a duty to their motherland. India is spending huge amounts of
money on their training. These people should not betray their own nation
by serving foreign nations. Today thousands of young Indian scientists
and technicians are devoted to the cause of rebuilding the nation. The
country has already achieved the nuclear status as well as become a
space power.

Suggesions

· First and foremost political stabilitycan be maintained such that

foreign companies can invest in India thereby providing employment
for lots of people.

· Investment in the construction of more upper level institutes of

education.
 · Education can be made practical not just theoretical.

· Bringing a balance between income, expense, savings and benefits

provided by the state.

· Government should make effort to provide opportunities and better

employment system for the highly qualified students.

University opportunities are limited in certain areas, and the government

can develop a qualitative and research oriented educational system.

· There can be a minimum salary fixed for every level of work and
monitoring is also equally important. Minimum salary can be fixed
taking into account price in the market and it must be revised every
year.

CONCLUSION

India Government must understand the problem of brain drain and its
consequences towards Indian Economy. Government should support for all
category of people not to leave from India, by supporting financially, technically,
and professionally. Where there is an effective utilization of human knowledge
impossible , then one can see the growth rate of economy in terms of all aspects
and on GDP rate. Moreover, Government must amend policies in higher education,
so that Indian talent can be discouraged to settle in other countries. The success of
India in 'Mars Orbiter' Project was due to highly motivated scientists, who work
day and night for their nation despite of going abroad. Had these scientists went to
abroad, above space project would never been a great success. So, Indian
Government must redress the above issue of Brain drain and may take initiative to
retain our best brains.

The balance of power and for the staggered development of the world, it is very
important to stop the phenomena of Brain-drain. This will help a India to use all
local skilled citizens for development and to attain higher GDP. But to hold the
skilled workers in India, it is also important to provide them enough work
opportunities and living facilities. For this purpose the Government may take
initiatives and amend policies or developed nations may help developing countries
with necessary money and resources.
ANALYSIS AND INTERPRETATION

In the research process analysis and interpretation is the last and an

important part. It helps to get findings which are interrelated to each
other by applying various techniques of statistics. From the primary and
secondary data we get a lot of meaningful information and can come to a
conclusion.

Analysis and interpretation was based on questionnaire, which gives

the primary data that is required for the study. Analysis and
interpretation is based on the opinion given by the respondent.
Table 1: Gender of Respondents
Particulars No. of Respondents Percentage (%)
Male 11 55
Female 9 45
Other 0 0
Total 20 100

The above table shows that there are 55% male respondents and 45% female
respondents involved in the study.

Gender

Male
Female
Other
Table 2 : Age of Respondents

Ages No.of respondents Percantage(%)

18-20 10 50
21-25 5 25
26-30 2 10
More than 30 3 15
Total 20 100

Ages

18-20
21-25
26-20
more than 30
Tabel 4: Migrate to develop country-
Particulars No of respondents Percentage(%)
Yes 15 75
No 5 25
Total 20 100
The above table shows that 75% of the respondents want to migrate to a
developed country and 15% of them don’t want to migrate.
Tabel5: Going abroad for better education
Particulars No of respondents Percantage(%)

Yes 13 65

No 7 35

Total 20 100

The above table shows that 65% of respondents prefer to go abroad

for better education and other 35% do not.
Table 6:There is lack of higher study opportunity in home
country

Particulars No of respondents Percantage(%)

Yes 8 40
No 12 60
Total 20 100

The above table shows that the 40% of respondents says

there is lack of study opportunity other 60% says no
Tabel 7: limited opportunities in govt. universities for higher
education

Particulars No of respondents Percantage(%)

Yes 6 30
No 14 70
Total 20 100

The above table shows that 30% of respondents agree that

there is limited opportunities in government universities for
higher education in India and other 70% opted no.
Tabel 8 Foreign countries provide better career
opportunities.

Particulars No of respondents Percantage(%)

Yes 8 40
No 1 5
Maybe 11 55
Total 20 100

Interpretation
Tabel 9: Unavailability of specialized course/ program
in home country
Particulars No of respondents Percantage(%)
Yes 15 75
No 5 25
Total 20 100

Interpretation
Tabel 10: Poor infrastructure in academic institution

Particulars No of respondents Percentage(%)

Yes 10 50
No 10 50
Total 20 100
Tabel 11: Political instability is a reason for going abroad
Particulars No of respondents Percentage(%)
Yes 6 30
No 6 30
Maybe 8 40
Total 20 100
Table 12: better salary is offered by the overseas company

Particulars No of respondents Percantage

Yes 13 65
No 7 35
Total 20 100
Tabel 13: the reward system is better for high performers in
abroad

Particulars No of respondents Percantage

Yes 13 65
No 7 35
Total 20 100
Tabel 14: better standard of living in abroad

Particulars No of respondents Percentage

Yes 9 45
No 6 30
Maybe 5 25
Total 20 100
Tabel 15: prefer to come back to India after some years
Particulars No of respondents Percentage
Yes 12 60
No 4 20
Maybe 4 20
Total 20 100