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This paper, through a comparative, empirical study of the role Chinese and Indian diasporas play in the political economy of their respective ancestral homelands, explores the relationship between diaspora and homeland development and how this dynamic relationship affects economic growth and foreign relations of the homelands. The author argues that the significant roles of Indian and Chinese diasporas in their respective homelands' development and foreign relations consistently reflect, and are heavily influenced by, their home countries' economic development strategies and political history and culture. The contributions of Chinese and Indian diasporas to their homelands provide a unique perspective in the comparative study of Chinese and Indian political economy. The research concludes that as globalization deepens, the role of diasporas will become more salient in international political economy, and that the international community needs to pay more attention to the two diaspora groups that are closely linked to the two rising Asian powers. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]