Abstract for: The socio-economic impact of Indias Brain Drain: The long term effects of economic migration on Indias economy
The phenomenon of brain drain has been a matter of concern for the growing economy of India in the past few decades. With a net migration rate of -0.41 per 1000 people, India is amongst the highest migrant sending country to the developed world. As most of these migrants are highly educated and skilled migrants, the loss of skilled expertise not only results in losses to the Indian economy by creating a shortage of skilled labor force within the country but is also a loss of the government’s investment in the education of these emigrants. This study focuses on using a system dynamics approach to model the impact of brain drain on the potential economic gain from migration, the educational investment and net migration. Three main areas affecting migration, namely, quality of education, corruption and the earnings potential abroad, are studied. Simulation results indicate that the government needs to create anti-corruption policies, invest in improving the quality of education and encourage return migration by providing various incentives to migrants, in order to reverse this effect. These policies are tested under uncertain parameters to verify their robustness.