Brain circulation is the circular movement of skilled labour across nations. Brain circulation differs from brain drain which describes skilled labour from certain countries emigrating to other countries in search of better opportunities. In India one witnessed large-scale emigration of engineers from its premier engineering institutes ) in the sixties, seventies and eighties. The late nineties and the early years of the 21st century however saw large numbers of these emigrants returning to India as prospects in India improved markedly, brought on by important economic reforms initiated in the early nineties. Brain circulation vs. brain drain There has been debate whether outflow of high skilled labor mobility should be regarded positively or negatively. The core theoretical framework for studying human capital flows dates back to at least John Hicks (1932), who noted that “differences in net economic advantages, chiefly differences in wages, are the main causes of migration”. Classic literature back in 1950s~1980s also follows Hicks’ work, and has come to a consensus on receiving countries having benefits; however, sending countries lose human capital, and thus have potential negative effects of the skilled emigration (Bhagwati and Hamada, 1974). Since the 1990s, a growing literature discusses the positive effect of high-skilled labor outflow, and argues that under certain circumstances, the brain drain may ultimately prove beneficial to the source country, and to do this while accounting for the various fiscal and technological externalities that were at the heart of the pessimistic models of the 1970s. Outflow of high-skilled labor can form a diaspora abroad, which promotes trade between the sending countries and countries that have the diaspora (Rauch and Trindale, 2002). Some high skilled workers come back to their home countries, even though they once leave their home countries for various reasons such as political instability and wage gap. They still have connections with home countries through their extended families and friends, which can be an incentive for them to return home. Wahba (2014) points out that most migrants ponder and plan their move back home throughout their migration experience. There are growing evidences that show some immigrants decided to come back and start their new life in home countries. For example, 20 to 50% of immigrants return home or relocate to a different country within five years of their arrival (OECD, 2008). Also, almost one-third of the migrants who came to the U.S. between 1908 and 1957 returned to their