The Indian Diaspora has notably acted as a catalyst in strengthening bilateral relations between India and the host nations. The India-US Civil Nuclear Deal is a case in point, as ethnic Indians in United States successfully lobbied for clinching of the N-deal.
However, the previous incidents of maltreatment of the ethnic Indians in Malaysia seem to have gone against the general trend of strengthening relations between India and the host countries. Relations with Malaysia, which has a significant number of ethnic Indians, too can go either way.
As the Diaspora has the potential of further bolstering India-Malaysia relationship to a new height. The paper studies the presence of Indian Diaspora in Malaysia in transforming the India–Malaysia bilateral relations. At present, both these countries treat the Indian Diaspora as a liability.
However, if India and Malaysia consider ethnic Indians as an asset, the ties between New Delhi and Kuala Lumpur will improve significantly.