People Rule as Power: How States Use Their Diasporas to Shape Foreign Policy

By Ishika Ranjan

In June 2025, when Prime Minister Narendra Modi addressed cheering crowds of Indian-origin Canadians during the G7 summit, it wasn’t just a photo-op—it was a clear signal of how countries today are leaning on their diasporas for far more than remittances. In many parts of the world, communities living abroad have become essential to the way nations think about power, diplomacy, and influence (The Hindu, 2025a).

Rethinking Diaspora: From Memory to Strategy

There are now over 300 million international migrants worldwide, a jump from 275 million just five years ago (United Nations Department of Economic and Social Affairs [UNDESA], 2024). For many countries, this expanding diaspora isn’t just a demographic trend—it’s a diplomatic opportunity. Governments are increasingly treating their overseas citizens as unofficial ambassadors, economic partners, and even political assets.

Whether it’s building trade ties, lobbying for national interests, or shaping global perceptions through culture and media, diaspora communities are playing a much larger role in shaping foreign policy than they did a generation ago.

A Closer Look: What Three Countries Are Doing Differently

India
India, with its vast diaspora of over 35 million people, has turned this community into a soft power engine (Ministry of External Affairs [MEA], 2024). Modi’s overseas rallies in cities like Houston and Sydney have made headlines, but there’s more going on behind the scenes. Indian-American organizations have lobbied U.S. lawmakers on issues like Kashmir and religious freedom, often aligning closely with the Indian government’s stance (The Hindu, 2025a). Events like Pravasi Bharatiya Divas also help turn personal heritage into policy leverage (Economic Times, 2025).

China
China’s approach is more formal and, at times, controversial. Through its United Front Work Department, the Chinese state maintains close ties with overseas Chinese networks—particularly in countries like Australia, Canada, and the U.S. (Australian Strategic Policy Institute [ASPI], 2023). These connections are used to promote pro-Beijing narratives, discourage dissent, and sometimes even monitor Chinese students or critics abroad. Several Western governments have raised alarms over interference in academic and political spaces.

Israel
For Israel, diaspora engagement has been central to its identity since the state’s founding. Through the Law of Return and cultural diplomacy, Israel has cultivated strong ties with Jewish communities worldwide. Lobbying organizations like AIPAC have long influenced U.S. foreign policy, while diaspora philanthropy has supported everything from hospitals to startup incubators. Unlike India or China, this relationship is deeply institutionalized and spans both public and private spheres (Shain, 2020).

When Power Backfires

Leveraging diaspora networks can offer states a real advantage, but it also comes with risk. Political mobilization by diaspora groups can strain host-country relations, especially when seen as foreign interference. India’s recent tensions with Canada over Sikh separatist activism are a case in point. For authoritarian states, efforts to suppress dissent within the diaspora—through surveillance or intimidation—raise major human rights concerns.

Even in democratic contexts, diaspora lobbying can prompt debates about dual loyalty or the fairness of foreign-born citizens shaping domestic policies. These are not new issues, but they’re growing more urgent as global migration accelerates.

What This Means for Policy

For home countries, the challenge is to engage diasporas constructively—balancing outreach with restraint.

For host states, transparency laws and digital regulation may become key tools in managing diaspora-linked lobbying.

For diasporas themselves, this new visibility brings both opportunity and scrutiny. How these communities choose to represent, resist, or reshape home-country narratives will increasingly matter on the world stage.

Conclusion: Diplomacy Without a Passport

Diplomacy today isn’t just about state officials—it’s about people. Diasporas now sit at the intersection of identity, economics, and geopolitics. They can amplify national image or damage it. They can fund development or drive division.

What’s clear is that in the evolving world order, the influence of diaspora communities is no longer a side note. It’s part of the main story. As more governments—from New Delhi to Tel Aviv to Beijing—look outward to their citizens abroad, the future of foreign policy may depend not just on what a nation says, but on who’s saying it, and where.

References

Australian Strategic Policy Institute. (2023). The influence environment: A study of the Chinese diaspora and United Front activity in Australia. https://www.aspi.org.au

Economic Times. (2025, January 12). Modi pitches cultural tourism to diaspora at Pravasi Bharatiya Divas 2025. https://economictimes.indiatimes.com

Ministry of External Affairs. (2024). Population of overseas Indians (as of December 2024). https://mea.gov.in

Shain, Y. (2020). The frontier of loyalty: Political exile in the age of the nation-state. University of Michigan Press.

The Hindu. (2025a, June 10). Modi meets Indian diaspora in Canada on sidelines of G7 summit. https://www.thehindu.com

United Nations Department of Economic and Social Affairs. (2024). International migrant stock 2024. https://www.un.org/development/desa/pd/

Ishika Ranjan is a final-year undergraduate at Ashoka University, majoring in Economics and Public Policy. Her work focuses on gender, migration, and education in India’s informal sector. She has conducted field research with migrant families under Project UDAAN and has interned with national organisations including NITI Aayog and the Centre for Social and Behavioural Change. Ishika has presented her research at national conferences and published op-eds on social norms and educational access. She is currently interning at the Observer Research Foundation’s Centre for New Economic Diplomacy.

Check out her previous article on CM here