Key Takeaways
• 30–36% of IIT graduates migrate abroad, with 62% of top 100 JEE rankers settling in the US or Europe.
• Indian government invests ₹10–15 lakh per IIT student; total budget ₹9,660 crore for 2024–25.
• Less than 3% of IIT graduates join Indian defense or research sectors; large wage gaps drive migration.
The movement of highly skilled graduates from India’s top engineering schools, especially the Indian Institutes of Technology (IITs), to foreign countries has sparked intense debate in 2025. This discussion has been fueled by the phrase “IITs building America, not India,” popularized by Kochi-based startup founder Dr. Deepessh Divaakaran. He describes the phenomenon as “state-sponsored cognitive asset laundering,” a term that captures the concern that India’s investment in elite education is benefiting other countries more than its own economy and society.
This analysis examines the scope and impact of this brain drain, using recent data and expert perspectives. It explores the economic, social, and policy dimensions of the issue, compares trends over time, and considers possible solutions. The goal is to provide a clear, evidence-based understanding of how IITs, brain drain, and cognitive asset laundering are shaping India’s future.
Purpose and Scope
This content aims to:
- Present the latest data on IIT graduate migration and employment patterns
- Analyze the economic and policy implications of brain drain and cognitive asset laundering
- Compare trends and highlight patterns in graduate choices and government investment
- Offer evidence-based conclusions and practical considerations for policymakers, students, and the public
The analysis draws on official statistics, expert commentary, and recent public statements, focusing on developments up to July 1, 2025.
Methodology
The findings are based on:
- Official data from the Ministry of Education, Government of India, and IIT annual reports
- Public statements and speeches by government officials and IIT alumni
- Analysis of graduate employment and migration statistics from 2024–2025
- Expert commentary, including Dr. Deepessh Divaakaran’s critique and perspectives from economists and education policy specialists
- Review of government budget allocations and policy documents
Where possible, data is cross-referenced with authoritative sources, such as the Ministry of Education’s official website, to ensure accuracy and reliability.
Key Findings
1. High Rate of IIT Graduate Migration
- 30–36% of IIT graduates migrate abroad after completing their education.
- Among the top 100 JEE rankers, 62% settle in the United States 🇺🇸 or Europe.
- Of those who remain in India, 70% work for foreign multinational corporations (MNCs) such as Google, Amazon, Microsoft, and McKinsey.
2. Significant Government Investment
- The Indian government spends ₹10–15 lakh per IIT student over four years.
- The total IIT budget for 2024–25 is ₹9,660 crore.
- Students pay only a small part of this cost, with many receiving full scholarships.
- The rest is paid by Indian taxpayers, effectively subsidizing talent that often benefits foreign economies.
3. Limited Contribution to National Sectors
- Less than 3% of IIT graduates join Indian defense or research institutions like DRDO, ISRO, or BARC.
- This low percentage raises concerns about the IIT system’s impact on India’s strategic and scientific sectors.
4. Stark Wage Gap Drives Migration
- A software engineer in the United States 🇺🇸 can earn about ₹1.5 crore per year.
- An entry-level scientist at ISRO earns about ₹12 lakh per year.
- This large wage gap strongly encourages IIT graduates to seek jobs abroad or with foreign companies.
5. Lack of Targeted Policy Response
- As of July 1, 2025, there are no major government policies directly aimed at reversing the brain drain from IITs.
- The government continues to invest heavily in IITs but has not introduced incentives to keep talent in India.
Data Presentation and Visual Summary
IIT Graduate Migration and Employment Patterns (2024–2025)
- 30–36%: IIT graduates who migrate abroad
- 62%: Top 100 JEE rankers who settle in the United States 🇺🇸 or Europe
- 70%: IIT graduates in India working for foreign MNCs
- <3%: IIT graduates joining Indian defense or research institutions
Government Investment
- ₹10–15 lakh: Cost per IIT student (4 years)
- ₹9,660 crore: Total IIT budget for 2024–25
Wage Comparison
- ₹1.5 crore/year: Software engineer in the United States 🇺🇸
- ₹12 lakh/year: Entry-level scientist at ISRO
These numbers show a clear pattern: a large share of India’s best engineering talent either leaves the country or works for foreign companies, despite heavy public investment in their education.
Comparisons, Trends, and Patterns
Historical Context
The IITs were set up to help India develop its own scientific and technological strength. Over the years, they have produced graduates who have made important contributions to global technology and research, especially in the United States 🇺🇸 and Europe. This success has brought pride but also concern, as more and more IIT graduates choose to work abroad.
Recent Trends
- The percentage of IIT graduates migrating abroad has remained high, especially among top performers.
- Wage differences between India and countries like the United States 🇺🇸 have grown, making foreign jobs even more attractive.
- Government spending on IITs continues to rise, but most of the benefits are felt outside India.
- Few graduates join Indian research or defense sectors, which are seen as less rewarding both financially and professionally.
Patterns
- Subsidized Talent Pipeline: The current system creates a steady flow of highly trained engineers who are educated at public expense but often work for foreign economies.
- Economic Incentives: The large wage gap is a major factor driving brain drain.
- Limited Domestic Opportunities: Indian research and defense sectors struggle to attract top talent due to lower pay and fewer career growth options.
Evidence-Based Conclusions
1. The IIT Brain Drain Is Real and Persistent
The data clearly shows that a significant share of IIT graduates leave India or work for foreign companies. This trend has not slowed, despite ongoing debate and concern.
2. Cognitive Asset Laundering Is a Useful Framework
Dr. Deepessh Divaakaran’s term “cognitive asset laundering” highlights the ethical and economic problem of using public funds to train talent that then benefits other countries. This framing has helped bring new attention to the issue in 2025.
3. Wage Gaps and Career Growth Are Key Drivers
The huge difference in pay and professional opportunities between India and countries like the United States 🇺🇸 is the main reason for the brain drain. Unless these gaps are addressed, the trend is likely to continue.
4. Policy Response Has Been Limited
Despite heavy investment in IITs, the Indian government has not introduced strong policies to keep talent in the country. There are no bonding requirements, targeted incentives, or major reforms to make domestic research and defense jobs more attractive.
5. National Strategic Sectors Are Missing Out
With less than 3% of IIT graduates joining key sectors like DRDO, ISRO, or BARC, India’s ability to build its own scientific and defense capacity is limited. This could have long-term effects on national security and innovation.
Limitations
- Data Gaps: Some statistics are based on estimates or self-reported data from IITs and alumni networks. Exact numbers may vary.
- Changing Motivations: Graduate choices are influenced by many factors, including personal goals, family, and global events. Not all decisions are driven by economics alone.
- Policy Lag: Government responses may take time to show results, and new initiatives could emerge after July 2025.
- Global Mobility: The movement of talent is a global trend, not unique to India. Some level of migration is expected in any open economy.
Policy Implications and Practical Effects
Economic Impact
- Loss of Public Investment: When IIT graduates move abroad, the money spent on their education benefits other countries.
- Reduced Innovation: India may miss out on new ideas and technologies if its best minds work elsewhere.
- Weaker Strategic Sectors: Defense and research institutions struggle to attract top talent, which can slow progress in important areas.
Social and Ethical Considerations
- Fairness to Taxpayers: Many people question whether it is fair for public funds to support education that mainly helps foreign economies.
- Personal Freedom vs. National Need: Balancing individual career choices with the country’s needs is a complex issue.
Possible Policy Measures
Experts and policymakers have suggested several ways to address the problem:
- Increase Pay and Career Growth in National Sectors: Making jobs at DRDO, ISRO, and BARC more attractive could help keep talent in India.
- Bonding or Service Requirements: Graduates who receive government scholarships could be required to work in India for a certain period.
- Build a Stronger Domestic Tech Ecosystem: Creating more opportunities for innovation and entrepreneurship in India could reduce the appeal of foreign jobs.
- Encourage Global Exposure, But Retain Talent: Policies could support international experience while making it easier for graduates to return and contribute to India.
Comparisons with Other Countries
Many countries face similar challenges. For example:
- China has introduced programs to bring back top talent, offering high salaries and research funding.
- South Korea and Singapore have strong links between universities and national industries, helping to keep graduates at home.
- United States 🇺🇸 benefits from attracting global talent, including many IIT graduates, through its open immigration and high-paying tech sector.
India could learn from these examples by creating more competitive opportunities and targeted incentives for its own graduates.
Trends and Future Outlook
- Growing Public Debate: The issue of brain drain and cognitive asset laundering is getting more attention in the media and among policymakers.
- Possible Policy Changes: There is talk of new government initiatives to increase funding for research and create incentives for IIT graduates to stay in India.
- Monitoring and Data Collection: Tracking graduate outcomes and employment patterns will become more important for shaping future policies.
As reported by VisaVerge.com, experts expect that the government may introduce new measures in late 2025 or 2026 to address these challenges.
Practical Guidance for Stakeholders
For Students and Graduates
- Consider Long-Term Goals: Think about how your career choices affect both your future and your country’s development.
- Explore Opportunities in India: Look for emerging sectors and startups that offer growth and innovation.
- Stay Informed: Follow updates from the Ministry of Education and leading research institutions for new programs and incentives.
For Policymakers
- Review Scholarship and Bonding Policies: Consider whether service requirements or incentives could help retain talent.
- Invest in National Sectors: Increase funding and support for research, defense, and innovation in India.
- Engage with Alumni: Build networks that encourage graduates to return and contribute to India’s growth.
For the Public
- Understand the Costs and Benefits: Recognize the value of global exposure but also the importance of keeping talent in India.
- Support Policy Reforms: Advocate for changes that balance individual freedom with national needs.
Additional Resources
For official information on IIT budgets, policies, and updates, visit the Ministry of Education, Government of India.
For details on research and defense recruitment, consult the official websites of DRDO, ISRO, and BARC.
Public statements and convocation speeches from IITs are available on their respective official portals.
Conclusion
The movement of IIT graduates abroad, described as brain drain and cognitive asset laundering, is a complex issue with deep economic, social, and policy roots. While India’s investment in elite education has produced world-class talent, much of the benefit is felt outside the country. Addressing this challenge will require a mix of better domestic opportunities, targeted policies, and ongoing public debate. By understanding the facts and considering practical solutions, India can work towards a future where its best minds help build both the nation and the world.
Learn Today
IIT (Indian Institutes of Technology) → Premier Indian engineering institutions known for high-quality education and producing top technical graduates.
Brain drain → The emigration of educated or skilled professionals from their home country to seek better opportunities abroad.
Cognitive asset laundering → Using public funds to train talent who then predominantly contribute knowledge and skills to other countries.
JEE (Joint Entrance Examination) → Competitive exam for admission to IITs, ranking candidates for engineering programs in India.
MNCs (Multinational Corporations) → Companies operating in multiple countries, often hiring IIT graduates in India but headquartered abroad.
This Article in a Nutshell
In 2025, India faces critical brain drain as many IIT graduates migrate abroad or join foreign firms despite massive public investment. Wage gaps and limited domestic incentives keep top talent from joining strategic national sectors like ISRO and DRDO, fueling debate on cognitive asset laundering and future policy reforms.
— By VisaVerge.com
