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This paper, through a comparative study of the roles Chinese and Indian diasporas in the United States play in the political economy of their respective homelands, explores the relationship between the diaspora and homeland development and how this dynamic relationship contributes to economic growth and foreign relations of the homelands. The author argues that the roles of Indian and Chinese diasporas in their respective homelands’ development consistently reflect, and are heavily influenced by, their homelands’ economic development strategies as well as political history and culture. The author also argues that the impact of the diaspora on the foreign relations of their homelands is conditional upon the state of bilateral relations between their homeland and the country of residence. This study raises issues for future research, such as the relationship between the diaspora and regime type of the homeland. The author concludes by suggesting that since activities of overseas Chinese and non-resident Indians provide a unique perspective in the comparative study of Chinese and Indian political economy, the two diasporas warrant more scholarly and policy attention. [ABSTRACT FROM AUTHOR]