Labor shortages in affluent countries and foster its economic growth via remittances and skill enhancement, India could leverage legal migration pathways

Migration in India represents a significant socio-economic occurrence, involving both internal and international movements. It is instrumental in influencing the country's demographic, economic, and cultural framework.

The Necessity for Legal Migration Pathways in India

Labor Shortages: By 2030, high-income nations are expected to experience a cumulative labor deficit of 40-50 million individuals, which could escalate to 120-160 million by 2040. This shortage affects various sectors, including industrial labor, healthcare, education, engineering, and research.

Untapped Potential: The Indian diaspora exceeds 30 million, with migrants contributing over $125 billion in remittances each year, accounting for approximately 3% of the nation's GDP. Indian migrants represent about 1.3% of the total population, significantly lower than figures for Mexico (8.6%), the Philippines (5.1%), or Bangladesh (4.3%).

Enhancing Remittances and Alleviating Poverty: Research conducted among 71 low-income countries indicates that a 10% increase in remittances can lead to a 3.5% reduction in poverty levels.

Skill Transfer and Innovation: Employment abroad encourages the transfer of skills, fosters entrepreneurship, and stimulates innovation, benefiting both India and the host countries.

Strengthening Bilateral Relations: Establishing legal migration pathways can enhance relationships with partner nations, facilitating mutually advantageous economic and cultural exchanges.

Policy Recommendations

Comprehensive Migration Policy: India currently lacks a specific national migration policy. The establishment of a National Migration and Mobility Policy (NMMP), in alignment with Sustainable Development Goals (SDG) and International Labour Organization (ILO) conventions, is essential.

Migrant Resource Centers: It is important to expand Migrant Help Desks in both the areas of origin and destination.

Key Recommendations for Harnessing Migrants' Potential

Establishing an Institutional Framework: This initiative aims to enhance the central migration department of the Ministry of External Affairs (MEA) to identify new destination markets, negotiate bilateral agreements, and ensure that the supply and demand for skills across industries are effectively matched.

Aligning Skill Development and Accreditation with Global Standards: This could involve the inclusion of foreign language instruction and the development of global competencies, advocating for mutual recognition agreements with key migration corridors, and obtaining joint certifications in collaboration with international organizations.

Improving Financial Mechanisms: The financial burden of acquiring necessary skills and certifications, along with fulfilling other prerequisites, can be a significant barrier for many potential migrants. Costs can vary widely, from Rs 1-2 lakh for Gulf Cooperation Council (GCC) countries to Rs 5-10 lakh for European nations.

Adopting Best Practices from Existing Models: To facilitate the removal of bureaucratic visa obstacles, promote socio-cultural integration, and enhance the recognition of Indian qualifications, it is beneficial to look at successful examples. For instance, the Philippines has established a model that includes central and regional offices, as well as migrant worker offices in host countries. It has secured agreements with over 65 nations, effectively streamlining visa processes and ensuring global acknowledgment of Philippine qualifications.

Establishing Industry Standards for Ethical Recruitment: There is a pressing need to create a mobility industry body to support India's overseas recruitment sector, addressing the current fragmentation and lack of regulation. This body can set ethical recruitment standards and work towards aligning qualifications with international benchmarks.

Creating a Comprehensive Social Welfare Framework: India can implement standards for minimum wage guarantees, standardize employment contracts, ensure timely salary payments, provide safe living conditions, facilitate access to healthcare, offer legal assistance, and establish mechanisms for reporting workplace abuse or contract violations, in accordance with International Labour Organization (ILO) guidelines.

Government Initiatives

eMigrate Portal and Agreements with Destination Countries: Administered by the Ministry of External Affairs, this portal promotes safe and lawful migration for Indian workers pursuing employment abroad.

Skill Development Aligned with Migration Trends: Migrants frequently find work in industries such as construction, hospitality, domestic services, and manufacturing. Programs like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and the Skill India Mission are designed to improve the employability of Indian workers in international markets.

India for the World Initiative: This encompasses various efforts by India to offer development aid and capacity building to other nations, especially those in the developing world. These initiatives emphasize technology transfer, training, and the sharing of India's expertise to assist other countries in achieving their development objectives.

Conclusion

By effectively utilizing legal migration pathways, India can fully harness its demographic advantage, addressing global labor shortages while fostering domestic economic growth. This strategy not only establishes India as a center for global talent but also promotes sustainable development and poverty reduction through remittances and skill development.