Is the Dream of Working Abroad Fading for Indians?

KUALA LUMPUR, 26 SEPTEMBER 2026 —

India’s reverse brain drain remains limited despite growing interest in AI, semiconductors and deep tech, with visa restrictions and anti-immigration sentiment abroad pushing some skilled professionals home—but the number of returnees still lags far behind the country’s vast diaspora of over 18 million.

The trend, while notable, has yet to translate into a significant shift, according to data cited in the report. While sectors like AI, semiconductors, and deep tech are attracting talent, India’s ability to retain and absorb these professionals hinges on creating high-quality jobs, research opportunities, and an improved quality of life.

The government’s push for self-reliance in technology and manufacturing—highlighted by initiatives like the Production-Linked Incentive (PLI) scheme—could play a key role, but challenges such as bureaucratic hurdles and infrastructure gaps persist.

Tighter visa policies in Western nations, including the US, Canada, Australia, and the UK, are accelerating the return of some professionals. Reports indicate increased scrutiny on work permits, with delays and rejections rising for Indian applicants. Meanwhile, anti-Indian sentiment in parts of the West—fueled by perceptions of cultural clashes and competition for jobs—has further discouraged long-term stays.

The Gulf region, traditionally a hub for Indian expatriates, continues to offer opportunities, but wage stagnation and limited career growth are pushing some to explore domestic alternatives.

For Malaysia and the broader region, India’s struggle to convert brain drain into brain gain underscores the competitive challenge in attracting skilled talent. While Southeast Asia, including Malaysia, has seen its own tech and startup growth, the region still lags behind India’s scale in high-tech sectors. The outcome of India’s efforts will influence global talent flows, with potential implications for economies reliant on foreign skilled workers, including Malaysia’s own tech and semiconductor industries.

The next phase hinges on whether India can deliver on job creation and innovation—factors that will determine if the reverse brain drain gains real momentum.