A storm is brewing in India’s startup and education circles after Kochi-based entrepreneur Dr. Deepessh Divaakaran launched a scathing critique of the Indian Institutes of Technology (IITs), calling them a “state-sponsored cognitive asset laundering” system. In a viral post that has sparked nationwide debate, Divaakaran accused the IIT ecosystem of inadvertently financing the West’s tech dominance — while India foots the bill. “We are not building India. We are building America,” he wrote. His argument? India is investing crores into elite engineering education, only to watch its brightest minds leave the country — or serve foreign corporations from home.
Originally envisioned to fuel India’s technological sovereignty — especially in sectors like atomic energy, space research, and rural innovation — the IITs were part of post-independence nation-building. But Divaakaran believes that dream has been hijacked.
“These institutions weren’t built for applause. They were built for defending India’s sovereignty,” he wrote. “Now they defend shareholder profits.”
The data supports his frustration:
By contrast, less than 3% of IIT grads join Indian institutions like DRDO, ISRO, or BARC — bodies critical to India’s defence, science, and public R&D sectors.
The Indian government spends approximately ₹10–15 lakh on each IIT student during the course of their education. In the 2024–25 budget, ₹9,660 crore has been allocated to IITs. Divaakaran’s central concern is stark: who ultimately benefits from this investment?
“Students pay a fraction — many pay nothing due to scholarships. Who pays the rest? You do,” he pointed out, addressing the Indian taxpayer.
This, he argued, creates an economic distortion. A software engineer in the U.S. may earn ₹1.5 crore annually, while an entry-level ISRO scientist earns around ₹12 lakh.
“We pay for the training. The West buys the mind,” Divaakaran wrote. “Before 1947, we exported cotton and diamonds. Now, we export intelligence — and we celebrate it.”
The startup founder also questioned why this phenomenon is glorified in Indian media and society.
“We mistake personal success for national pride,” he noted. “Our children succeed individually, but our nation stagnates collectively.”
He coined the term “cognitive asset laundering” to describe the IIT pipeline — where India’s taxpayer-funded human capital ends up powering foreign economies and innovation hubs.
Calling for structural change, Divaakaran proposed two radical ideas:
He also questioned the open access that multinational corporations enjoy at India’s most elite campuses.
“Why are we subsidizing Google’s next AI engineer or McKinsey’s next analyst while our defence labs struggle to fill seats?” he asked.
Divaakaran’s comments have triggered heated debate across India’s tech and policy communities. Supporters have lauded the call to realign IITs with national priorities. Critics, however, say the global exposure enabled by the IITs is vital for innovation and personal freedom.
A former IIT professor (who requested anonymity) responded:
“You can’t cage brilliance. The real challenge isn’t stopping migration, but creating conditions so compelling that our best minds choose to stay.”
Meanwhile, bureaucrats and educationists are calling for policy dialogue backed by data — not just viral outrage.
Q: Why do so many IITians migrate abroad?
A: Better pay, research infrastructure, quality of life, and faster career growth are primary drivers. Lack of R&D investment and bureaucratic hurdles at home also play a role.
Q: Don’t IITians contribute to India through remittances or startups?
A: Some do. But Divaakaran argues remittances and occasional startups don’t justify the scale of public investment lost.
Q: Wouldn’t a national bond limit student freedom?
A: Critics call it restrictive. Advocates argue it ensures accountability and return on taxpayer money.
Q: Has any country retained its top talent successfully?
A: Yes. Countries like Israel, China, and South Korea have implemented targeted strategies, including bond systems and innovation clusters, to retain or repatriate talent.
As the debate intensifies, one thing is clear: the IIT brain drain isn’t just about jobs and migration — it’s about India’s long-term strategy. Whether Divaakaran’s suggestions lead to policy reform or remain a viral flashpoint, his message demands reflection:
“You pay your taxes. You build their dreams. They build another country. And the country that birthed them? Stands clapping.”
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