BRAIN DRAIN-A BOON OR A BANE?!

WHAT EXACTLY IS BRAIN DRAIN?!

 Growth in the migration of skilled
personnel from developing to developed
countries.
 Developed countries attract these skilled
people because:
1. Skill shortages resulting from rapid skill
biased technical change as well as
educational failures.
2. Gaining access to international
competence.
3. Access to technical or market
knowledge.
HOW US AND UK GOT BENEFITTED!!
 4 out of 10 startups in Silicon
valley are Indian!
 More than 1/3 of engineers are of
Indian descent!
 7% of valleys hi-tech firms are led
by Indian CEO’s!
 2009 stats said there are more than
1 lakh Indian students studying
 30% of UK doctors hail from India,
that amounts to 12% of total
doctors in India!
COMPARISON ….
 The average share between 1994 and 2001 of the
native-born population with a bachelor’s degree
or better was 26.5 percent—compared with 70.8
percent for the Indian born!
 The share of the Indian born with post-bachelor’s
degrees master’s degrees, professional degrees,
and doctorates—is also high at 36.8 percent
compared to 8.5 percent native born.
WHAT ARE THE NEGATIVE IMPACTS..
 R&D
 Entrepreneurship
 Crores of money spent by the Government on
their education!
 Loss of best talent.
GOVERNMENT EXPENDITURE ON EDUCATION

Total education budget of Rs. 438250 million,

(Rs. 287500 million) on elementary education;
(Rs. 43250 million) on secondary education;
(Rs. 12500 million) on adult education;
(Rs. 41765 million) on higher education;
(Rs. 47000 million) on technical education; (Rs.
6235 million) on miscellaneous education
schemes
HOW THE SCENARIO IS CHANGING…
 Recession hitting US market, increasing job loss and
several banks going bust have made NRI’s in US
feel insecure.
 Greece going bankrupt and threat to EURO is again
spreading negative vibes.
 Indian economy came out of recession successfully,
and is still growing at rapid pace and has a huge
potential for growth as Indian companies are
growing, and MNC’s are coming in huge numbers.
 All these are leading to..REVERSE BRAIN
DRAIN
WHAT IS REVERSE BRAIN DRAIN?!?
 Reverse brain drain refers to the process
whereby human capital moves in reverse from
a more developed country to a less developed
country that is developing rapidly.

 It is heartening to know since Reverse Brain

Drain is a boon to any developing country like
India. We get access to our own people who
have been trained in one of the best institutes
in the world. With their qualifications and
international exposure, it is no doubt that they
can contribute to the nation.
DETAILS REVEALED AFTER STUDY(UNESCO)

 About 100,000 skilled Indian 'returnees'

will come home from the United States
in the next five years.
 Of the workers who already returned
66% held masters, and 12% had PhDs.
 27% had permanent resident status in
US.
 . It found 34.5 per cent of the
immigrants said they were "either
planning to leave the US or were
uncertain about remaining
WHAT IT IMPLIES…
 Top multinationals are entering India & sending
their top Indian minds to head their companies in
India.
 Many highly qualified people with International
exposure and bank balance would lead to
increase in entrepreneurship.
 R&D would get a big boost as many PhD’s are
interested in returning back to India