Ans. The world today is facing a significant labour shortage. High-income countries are projected to experience a shortfall of 40–50 million workers by 2030, which may increase to 120–160 million by 2040. In this global scenario, India, with its young and dynamic population, stands at the brink of a major opportunity to become a global supplier of talent. Currently, Indian migrants contribute over $125 billion annually in remittances, amounting to nearly 3% of India’s GDP—more than any single sector of India’s merchandise exports. Legal migration pathways offer a strategic avenue for India to both utilise its demographic dividend and contribute to the global labour market.

What Role Can Legal Migration Pathways Play in Harnessing India’s Demographic Dividend?

Despite its large and youthful population, only about 1.3% of Indians live abroad as migrants—significantly lower than Mexico (8.6%), the Philippines (5.1%), or Bangladesh (4.3%). This reveals immense untapped potential for India to expand its footprint in global labour markets.

Legal migration pathways offer multiple benefits:

Enhanced Global Workforce Participation: By promoting legal and structured migration, India can increase the share of its population participating in global labour flows, thus unlocking new sources of income and employment.
Poverty Alleviation through Remittances: A study of 71 low-income countries shows that a 10% increase in remittances leads to a 3.5% reduction in poverty. India can replicate this impact by encouraging legal overseas employment.
Shift from Informal to Formal Migration: Legal pathways can reduce reliance on unsafe and exploitative channels. This not only protects migrant rights but enhances India’s image as a country that promotes safe, responsible, and orderly migration.
Demographic Dividend Realisation: India's young population can be trained and channelled into global labour markets through temporary, circular migration flows, benefiting both sending and receiving countries.
Strategic Soft Power Expansion: Indian migrants often serve as cultural ambassadors. By becoming a trusted source of skilled and semi-skilled workers, India can strengthen its geopolitical influence and global partnerships.

What Institutional Frameworks Are Necessary to Support This Strategy?

To systematically leverage legal migration, India needs a strong, supportive institutional ecosystem. The following components are essential:

1. Dedicated Migration Promotion Institutions

Establish a centralised body or upgrade existing agencies like the Ministry of External Affairs (MEA) and Ministry of Skill Development and Entrepreneurship (MSDE) to coordinate international employment policies.
Regional Migration Centres can assist aspiring migrants with information, documentation, and placement services.

2. Internationally Aligned Skilling and Accreditation

Skill development programs under Skill India Mission and PM Kaushal Vikas Yojana should be mapped with global occupational standards.
Indian workers should receive certifications recognised in destination countries to ease their employment and placement.

3. Financial Assistance and Support Mechanisms

Provide low-interest loans or subsidies to migrants for travel, documentation, training, and placement.
Set up financial literacy programs to help workers manage remittances, savings, and investment back home.

4. Government-to-Government (G2G) Agreements

India should proactively engage in bilateral labour mobility agreements. For instance, the Philippines has agreements with over 65 countries.
These pacts should include job guarantees, safety protocols, legal protection, and mutual recognition of skills.

5. Social Welfare and Protection Measures

Ensure host countries uphold migrant rights through labour attachés and welfare officers at Indian missions abroad.
Provide insurance schemes, grievance redressal mechanisms, and legal aid to protect workers from abuse and exploitation.

6. Support for Returning Migrants

Create reintegration programs offering upskilling, entrepreneurship opportunities, and social security for returnees.
Encourage returning workers to use their global exposure to contribute to India’s economy and innovation ecosystem.

Transforming India into a global talent powerhouse is not merely an economic opportunity—it is a strategic imperative. With millions of skilled and semi-skilled workers seeking employment, India must leverage legal migration pathways to channel its demographic dividend into global value chains.

A comprehensive framework—covering skill alignment, financial support, international agreements, and worker protection—can unlock unprecedented benefits. Legal migration will not only increase remittances and reduce poverty but also help India establish its reputation as a responsible, forward-looking contributor to the global labour market.

Useful Links

Quick Links