Flight of the Elite

THE KEY TAKEAWAYS from Sanjaya Baru’s new book centre on the Indian affluent class de-risking themselves from uncertainties and government control in India. He places the story in a historical perspective, offering a broad picture of major Indian migration overseas that began in the 19th century, starting with indentured labourers before semi-skilled, highly skilled, and the super-rich joined the rush.

The author, a policy analyst who was media adviser to former Prime Minister Manmohan Singh, categorises migrations from India overseas since the mid- 19th century into four phases: that of impoverished Indians to far-off outposts organised under the aegis of British rule and other colonial powers; then of semi-skilled workers to locations like the Gulf region; of qualified professionals typically to developed countries; and the fourth phase of high-net-worth individuals (HNIs).

In his impressive narration, populated with anecdotes often with a personal touch, Baru brings to the fore various facets of the elite’s outmigration from the so-called New India. He argues that the outbound HNIs are driven by four motives. “First come the fugitives from law—the Mehul Choksis, Mallyas and Modis. Billionaires who have had to flee India for having violated one law or another.” After dwelling on their priorities, he goes on to the second: the flight of first-generation wealthy individuals “who are wary of the political and bureaucratic regime at home, many with weaker links with the power structure, and feel safer with their wealth outside India.” Many of these comprise the rich from South India who have less influence in the corridors of power. The third motive, according to the author, is the need to de-risk from an uncertain economic, regulatory, and governance environment in India. And the fourth is the quest for a different lifestyle, elsewhere.

I finished reading this book while in London on a holiday and was able to experience many of Baru’s crucial arguments firsthand. As the author points out, non-resident Indians (NRIs), for all practical purposes, have become non-returning Indians.

Baru spotlights the efforts of the Atal Bihari Vajpayee government to honour the contributions of these diasporic Indians by establishing the Pravasi Bharatiya Divas (PBD) Convention in 2003, coinciding with the anniversary of Mahatma Gandhi’s return on January 9, 1915, the most famous diasporic Indian of all, who plunged into India’s freedom struggle. He also elaborates on the efforts by foreign-educated Indians who returned to India following independence to develop institutions.

However, the reality now is vastly different, as evidenced by the numbers the author reels out regarding HNI flights overseas and the education their children pursue, with the ambition of relocating abroad for studies and employment. The number of such aspirants from across the socio-economic and even the political divide is only rising.

Baru discusses the proposals made decades ago by the economist Jagdish Bhagwati to impose a brain drain tax on those who leave the country to make overseas destinations their field of activity, thanks to the highly subsidised education of the past.

Today, there are hardly any such concerns, argues Baru in the book. The author’s anxiety is that the trend has accelerated in the past decade. “What should worry social thinkers, economic planners, and political leaders is the growing nonchalance about such emigration within the elites. There was a time when they worried about brain drain. Today, many blithely shrug the worry off, claiming this is compensated by brain gain and brain circulation.”

The evidence is patchy, Baru asserts. As he states in the Introduction, the concern is that the future of the families of the elite will no longer be tied to India’s future.

This book presents some compelling arguments that may upset those who tend to overlook the issue.

booksbrain draineliteMallyasMehul ChoksisSanjaya Baru