Abstract. The use of the diaspora factor in foreign policy contributes to the implementation of the state’s strategic objectives in the field of political and economic development. Diaspora policy, which includes soft power components, is often referred as “diaspora diplomacy.” It aims on effectively applications the political, economic, intellectual, and lobbying potential of the diaspora by restoring and fostering self-identification and connections with the historical homeland. The Indian diaspora, along with the Chinese and Russian diasporas, is one of the top three largest diasporas in the world. This fact alone makes the Indian experience of organizing interaction with its diaspora particularly interesting, but it has only begun to develop systematically in the first quarter of the 21st century. The article provides an overview of India’s diaspora policy using soft power components, including historical background (key causes, events, and migration waves), the current state and status of the Indian diaspora in various countries around the world, focusing on socio-demographic and geographical aspects, legal status, level of connectivity with the former homeland on the part of the next generations of descendants of migrants, organizational models, tools, goals, and objectives of establishing sustainable engagement between the Indian government and various segments of the Indian diaspora. The article demonstrates the combination of traditional, interactive, and digital formats as a tool for implementing India’s soft power initiatives in the field of diaspora policy. The main goals and objectives of diaspora policy in the context of India’s foreign policy include scaling up cultural diplomacy, shaping an appropriate public opinion through diaspora activities abroad, and developing the potential of the diaspora for India’s technological development and building more diversified trade and economic relations with other countries on a global scale.