This paper explores the evolving concept of diaspora diplomacy through a case study of the Indian expatriate community in the United Arab Emirates (UAE) and its growing influence on bilateral relations. With over 3.5 million Indian expatriates, constituting approximately 30% of the UAE's population, this diaspora has become a significant non-state actor in international relations, challenging traditional paradigms of foreign policy. The study traces the historical roots of India-UAE connectivity, which date back to centuries-old trade routes and labour migration patterns. It then examines how these historical ties have transformed into instruments of modern statecraft.

Focusing on the post-2014 period under Prime Minister Narendra Modi's administration, the paper investigates how India has strategically leveraged diaspora capital. This is particularly evident in three key areas: economic statecraft, cultural diplomacy, and political mobilization. First, the paper analyses the impact of remittance flows, which average $20 billion annually, and diaspora-driven investment channels that support the Comprehensive Economic Partnership Agreement (CEPA 2022). These economic contributions are critical in strengthening bilateral ties. Second, the paper evaluates India’s use of soft power through cultural initiatives such as yoga diplomacy, Bollywood exports, and the construction of the BAPS Hindu Temple in Abu Dhabi. These initiatives have significantly enhanced India’s cultural presence in the UAE. Lastly, the paper examines the institutionalization of diaspora engagement, particularly through events like the Pravasi Bharatiya Divas conventions and the Overseas Citizen of India (OCI) program.

The methodology of the paper combines a mixed-methods approach, utilizing quantitative analysis of remittance data and trade figures, as well as qualitative examination of policy documents and diplomatic statements. Additionally, the study includes case studies of prominent diaspora engagement initiatives. The findings suggest a paradigm shift from perceiving emigration as a "brain drain" to strategically leveraging it as a "diaspora dividend." This shift is evident in the UAE’s emergence as India’s third-largest trading partner, the normalization of high-level exchange visits, and collaborative infrastructure development projects.

The study concludes by evaluating the limitations of diaspora diplomacy, including challenges related to labor rights and the difficulty of maintaining political neutrality in host countries. It offers policy recommendations for optimizing this unique model of people-to-people connectivity, which currently contributes over $90 billion annually to bilateral trade between India and the UAE.