India as a country has one of the world's most diverse and complex migration histories. Since the 19th century, ethnic Indians have established communities on every continent across the globe. In the first decades after independence, unskilled, skilled, and professional workers mostly males, migrated from India to foreign land. Within the last decade, the Indian government has shown significant interest in the diaspora and established a number of diaspora policies. India's increasing interest in its diaspora has three major factors, they are economical change, cultural change and effects of remittance. The effect of these changes provides a broad overview of Indian migration flows and major populations worldwide with their contributions to India.

A large number of Indians have settled abroad. India once had a closed economy that did not encourage foreign contributions, businesses, or investment. When the government liberalized the economy, diasporic Indians became more useful as agents of trade, investment, and technology. Migration to foreign countries has become status symbol for Indians. The main reason for this is that they can afford to go and there is a good support network in the country they want to go since someone from the family or friends are already there. They think that if they settle abroad, the future of next generation is secured. Nature of the occupations of Indians in these countries varies, but it is a firm belief that the Indians in western countries are highly skilled workforce.

According to the recent reports by the World Bank, India has again topped the list of Inward Remittances. Inward remittances are the money, which are transferred or sent by the overseas Indian diaspora to their family, friends, and relatives back in India. It can be in the form of foreign currency, traveller's cheque or demand draft. India has now become the leading receiver of remittance in the world. India has held on the top position for the past 5 years in a row now. But how does it impact the Indian economy? According to the Ministry of Overseas Indian Affairs, around 25 million NRI contribute to the inward remittance. Every year they send billions of money in remittance to their families back home. There are many households who are dependent on this money that are sent to them by their family members working abroad. Inward remittance forms around a good percentage of the country's foreign exchange money.

Though India does not heavily depend on this money these migrants send to their families, but still remittance does adds up to the economy.