Indian Americans Account for 5-6 percent of US Income Tax Revenue

Indian Americans contribute to US income tax revenue, reflecting their significant economic impact and growing presence in the nation's workforce and business sectors.

Indian Americans, while comprising only 1.5 percent of the US population, contribute approximately 5 to 6 percent of all income taxes in the country. This demographic, totalling around 5.1 million individuals, is responsible for paying between 250 to 300 billion dollar in income taxes. The Indian diaspora's notable economic impact is reinforced by the fact that approximately 70 percent of Indian Americans hold US citizenship.

The prominent roles of Indian Americans in major American corporations such as Satya Nadella of Microsoft, Sundar Pichai of Google and Reshma Kewalramani of Vertex Pharma, among 16 Indian-origin CEOs of Fortune 500 companies, are noted for their substantial contributions. These CEOs collectively employ approximately 2.7 million Americans and generate nearly $1 trillion in revenue. Additionally, Indian Americans are recognized for their presence in the startup sector, with 72 out of 648 US unicorns founded by Indians. These unicorns employ over 55,000 people and are valued at $195 billion. In the landscape of academia, Indian Americans are distinguished by their emphasis on educational attainment. Around 78 percent of Indian Americans possess a bachelor’s degree or higher, which is significantly above the national average of 36 percent. Additionally, approximately 22,000 faculty members, or 2.6 percent of the total full-time faculty at American universities, are of Indian descent. Many Indian Americans hold key leadership roles, such as deans and presidents, in 70 percent of the top 50 US colleges. The growing influence of Indian-origin innovators in research and innovation, with their share of US patents increasing from 2 percent in 1975 to 10 percent in 2019. In 2023, research groups with Indian-origin scientists secured about 11 percent of all National Institutes of Health (NIH) grants and contributed to 13 percent of scientific publications.

The influence of the Indian diaspora extends into the US government and global policymaking. As of 2023, approximately 150 Indian Americans hold significant positions in the Federal administration, including Vice President Kamala Harris. Indian Americans are shaping developmental economics and global policies with Ajay Banga as the new president of the World Bank.

Moreover, the Indian diaspora’s contributions have had a positive impact on both the US and India. The Indian Americans have donated over $1.5 billion to philanthropic causes in the US and have supported various initiatives in India. In 2018-19, around $830 million in donations came from the US to India, representing 35 percent of all donations to the country. As their presence continues to expand, their contributions will likely play an increasingly important role in shaping the nation's fiscal health and economic future.