Global Labour Shortage and Opportunities For India

Context: By 2040, high-income nations may face a 160 million worker shortage. India, with its youthful workforce, can become a global talent hub, creating jobs and enhancing global influence.

Global Labour Shortage and Opportunities For India

• Labour Shortages in Advanced Economies: Developed countries face increasing worker shortages in sectors like healthcare, engineering, education, and industry.
• India’s Youthful Workforce: India has a large, young population capable of meeting global labour demands, but only 1.3% migrate abroad, far less than countries like Mexico (8.6%) or the Philippines (5.1%).
• Economic Gains Through Remittances: Indian migrants send home $125 billion annually, contributing 3% to the GDP, more than any single export sector.
• Poverty Reduction via Migration: A global study shows that a 10% rise in remittances can lead to a 3.5% drop in poverty in low-income countries.

Seven Steps to Build India’s Global Workforce Footprint

• Strengthen Migration Governance: Enhance the Ministry of External Affairs’ migration arm to identify target markets, sign migration agreements, and match skills with global demand. States should aid in ethical recruitment and worker protection. Indian embassies abroad must set up dedicated migration help desks. India can draw inspiration from the Philippines’ multi-level migration support system.
• Align Education with Global Job Markets: Incorporate foreign languages and international skills into the Indian education system. Facilitate joint certifications and mutual recognition of qualifications with key destination countries.
• Reduce Migration Costs: With current costs ranging from ₹1–2 lakh (GCC) to ₹5–10 lakh (Europe), India should implement the Philippines-style ESA-pay model, where licensed recruiters or employers bear major pre-departure expenses.
• Expand Bilateral Agreements: Proactively secure G2G migration deals to remove visa hurdles, ensure Indian qualifications are recognised, and ease the socio-cultural integration of Indian workers abroad.
• Establish a National Mobility Body: Create an industry-wide institution to standardise overseas recruitment, ensure ethical practices, align training with global standards, and enhance coordination between public and private stakeholders.
• Ensure Migrant Welfare Abroad: Uphold fair wages, timely payments, adequate housing, health access, legal assistance, and protection from exploitation, in line with ILO standards.
• Facilitate Returnee Integration: Tap into the skills and global exposure of returning migrants by offering reintegration support and opportunities to contribute to domestic development.

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