In contemporary era, Diaspora has emerged as dynamic actor to establish the diplomatic and strategic relationship between the countries, especially in the domain of development. It works as an agent of social, cultural and economic development for both the nation—host and home nation. As it is quite evident with the help of diaspora policy the Jewish and Chinese Diaspora have established multiple diplomatic ties. Along with this, it performs multifaceted role through remittances, knowledge transfer, cultural exchange and political engagement. India has also experienced its diaspora across the world. India has also tried to establish the link with their diaspora on the model of mutual support and development. In this regard, India has taken several initiatives to engage the Indian Diaspora. This engagement is based on the model of mutual support and development. This relationship is based on the model to establish link and network among the overseas Indian community across the world and enables them to share their experiences, issues and understanding in various fields. In this regard, this paper is trying to study India’s Diaspora Policy and its role to establish the relationship between India and South Africa. This paper has reviewed the role of diaspora in the development of host as well as home nation. In this regard, it has analysed India’s diaspora initiatives with special context to South Africa. It has also assessed the contribution during the COVID-19 global pandemic.