In general, these types of statements can do two things:

1. explain challenges you have overcome that might be reflected as somewhat less desirable parts of your record.
2. to try to convince the committee that your background (or overcoming that background) has provided you with desirable personal characteristics like grit, curiosity, open-mindedness, good communication, etc.
3. to demonstrate to the committee that you “get” diversity concerns and will be able to work well with people whose background is not like yours. For instance, you will be a good TA and not favor one group over another if placed in that role.

It seems to me that Indian Muslims are often somewhat of outsiders in their country and would provide an example that is useful. When you say it is perceived badly, I don’t think that would be the case in the US, unless the person said their background meant they would not work with opposite gender students or something really extreme. That would be a tricky one.

In general, these types of statements can do three things:

1. explain challenges you have overcome that might be reflected as somewhat less desirable parts of your record.
2. to try to convince the committee that your background (or overcoming that background) has provided you with desirable personal characteristics like grit, curiosity, open-mindedness, good communication, etc.
3. to demonstrate to the committee that you “get” diversity concerns and will be able to work well with people whose background is not like yours. For instance, you will be a good TA and not favor one group over another if placed in that role.

It seems to me that Indian Muslims are often somewhat of outsiders in their country and would provide an example that is useful. When you say it is perceived badly, I don’t think that would be the case in the US, unless the person said their background meant they would not work with opposite gender students or something really extreme. That would be a tricky one.