This paper examines the role of the state in the context of globalization. Taking up the specific case of Indian software engineers and their migration to the USA, the authors show the involvement of the Indian state and the US at different levels. The growth of the IT labour sector was based on changes in the higher education policy of the Indian state while the large-scale migration of IT workers from India required changes in the immigration policies of the US. The authors argue that these policy changes reflect how nation-states alter their national policies to meet the demands of the global economy. Equally important, the authors show that the policy changes are indicative of the unique political context and culture of each country. In the case of India, the education policy changes relate to caste politics while the immigration policy of the USA shares the legacy of US race politics. (Contains 23 notes.)