Indian Migrants: A Journey Across Borders | UPSC

Introduction

• Recently, the first batch of Indian workers left for Israel to address a labour shortage in its construction sector, which arose after a ban on Palestinian workers.
• An investigation has revealed a significant skill mismatch between the abilities of Indian workers and the expectations in Israel’s construction sector.
• Some of the workers have returned to India, while others have been redeployed to different sectors, reflecting the strengthening ties between the two countries.
• Despite the skill mismatch, such labour agreements present benefits for Indian workers and contribute to labour mobility between nations.
• Future labour pacts should address the gaps identified, ensuring a better alignment of skills and expectations.

Data on Indian Migrants Abroad

• Indian Migrant Population: There are about 30 million Indians living abroad, with the largest concentration in the Gulf Cooperation Council (GCC) countries, where approximately 9 million Indian workers are located. These migrants primarily work in low and semi-skilled jobs.
• GCC Dominance: Over 90% of Indian migrant workers reside in the GCC region, reflecting the high demand for labor, particularly in construction and service industries.

Reasons for the Increase in Indian Migrant Workers Abroad

• Demographic Advantage: India’s large working-age population, especially the youth, seeks employment overseas due to limited opportunities in India. Countries facing labor shortages, such as Israel during the Israel-Palestine conflict, attract Indian workers.
• Skill Gaps in Destination Countries: Many countries, particularly in the GCC and EU, face shortages in sectors like construction and healthcare, leading to increased demand for Indian workers. For example, skilled construction labor shortages in the GCC attract Indian workers.
• Cost Effectiveness: Employers in many countries find it more economical to hire Indian workers due to the wage differential. For instance, Indian software engineers are hired at lower wages than their Western counterparts, making them attractive to global companies.
• Globalization and Mobility: Improved global connectivity, such as better flight connections between India and the Gulf, has made migration easier, encouraging more Indians to seek opportunities abroad.
• Demand in Labour-Intensive Sectors: Reports from the National Skill Development Corporation (NSDC) highlight the rising demand for labor in sectors like construction and healthcare in both GCC countries and the EU.

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Significance of Indian Migrant Workers

Economic Contribution:

• • • Indian migrant workers’ remittances have a profound impact on India’s economy. In 2023, remittances reached $125 billion, accounting for about 3.4% of India’s GDP. 
    • These funds support household consumption, investments in education, healthcare, and housing in India, particularly benefiting rural areas.
    • A study by the Centre for Development Studies (CDS) indicates that the proportion of poor households in Kerala fell from 25% in 1977-78 to less than 12% by 2018, largely due to remittances. 

Skill Enhancement:

• • • Migrant workers acquire new skills and knowledge while working in foreign countries, which can have long-term benefits for India’s domestic industries when they return. 
    • For example, construction workers in the Gulf region gain expertise in modern construction techniques, which they bring back to India, improving the efficiency and quality of domestic projects. 
    • For instance, several engineers and workers with Gulf experience have been instrumental in DLF’s high-end projects, particularly in luxury real estate. The expertise they gained abroad in handling modern architectural designs and using high-end materials has been applied to premium projects across India.
    • Indian healthcare professionals who work abroad in developed countries like the UK or Canada bring back advanced medical practices and technologies. For instance, Dr. Trehan is a world-renowned cardiovascular surgeon who worked in the United States before returning to India. After gaining experience in advanced cardiovascular surgery techniques, he founded Medanta – The Medicity, a super-specialty hospital in Gurgaon, bringing back cutting-edge medical practices in heart surgery to India.

Soft Power and Diplomacy:

• • • The Indian diaspora plays a key role in strengthening India’s diplomatic relations. Indian communities abroad, especially in the United States, the United Kingdom, and the Gulf, help forge strong trade and cultural connections. 
    • The Indian-American community is one of the most influential immigrant groups in the US. With individuals like Kamala Harris (US Vice President) and Ro Khanna (Congressman), the Indian diaspora has gained substantial political clout, fostering deeper diplomatic ties between the two countries. 
    • The influence of the Indian diaspora in the US has also facilitated strategic partnerships like the US-India civil nuclear agreement. 
    • Moreover, countries like the UAE have strong diplomatic and trade ties with India, partly due to the presence of a large Indian workforce.

Investment and Entrepreneurship:

• • • Many Indian migrants eventually return home with substantial savings and global exposure, which they invest in entrepreneurial ventures. 
    • Several returned migrants from the Gulf have invested in real estate, small businesses, and technology startups in states like Kerala and Andhra Pradesh, creating jobs and boosting the local economy. This phenomenon is often referred to as “reverse brain drain,” where migrants bring both capital and expertise back to India.
    • For example, founded by Siddeek Ahmed, a former Gulf-based entrepreneur, Eram Scientific is known for developing the eToilet, India’s first electronic public toilet. 

Cultural Exchange and Promotion of Indian Identity:

• • • Indian migrant workers help promote Indian culture and values abroad, enhancing India’s global image. Cultural festivals like Diwali, celebrated by Indian communities across the world, foster cultural exchange and promote tourism to India. For instance, the International Day of Yoga, supported by Indian expatriates, has gained global recognition, contributing to India’s soft power.

Support during Global Crises:

• • • Indian migrant workers often contribute to relief efforts during global crises. During the COVID-19 pandemic, the Indian diaspora played a crucial role in organizing resources like oxygen concentrators and medical supplies for India. 

Diplomatic Leverage in Host Countries:

• • • The large presence of Indian workers abroad gives India diplomatic leverage in host countries. 
    • In recent years, India has negotiated with GCC countries to ensure the implementation of minimum wage laws for Indian workers. For instance, in 2021, the Indian government introduced a new wage structure for Indian workers in Gulf countries under the e-Migrate system. This system ensures that Indian workers, particularly in low-skilled jobs, are not exploited by employers and receive fair wages. In Saudi Arabia, the minimum wage for foreign workers was set at around SAR 1,500 (approximately $400) for unskilled labor. 
    • The Pravasi Bharatiya Bima Yojana (PBBY) is an insurance scheme introduced by the Indian government to provide social security to Indian migrant workers in the Gulf. It covers workers against accidental death or disability while working abroad. 

Technology Transfer and Innovation:

• • • Migrants working in high-tech industries, particularly in Silicon Valley, often lead to the transfer of cutting-edge technologies and innovations to India. Many tech professionals have started initiatives to mentor startups in India, thus fostering a culture of innovation. 
    • For instance, startups like Niki.ai and Haptik are examples of Indian companies leveraging AI to offer conversational AI platforms and personal assistants. 
    • Indian blockchain startups like Polygon (formerly Matic Network) have emerged as global leaders, creating scalable blockchain solutions that originated with diaspora involvement. 

Skilling Challenges for Indian Migrant Workers

• Mismatch Between Education and Occupation: Many migrant workers lack formal vocational training, resulting in a gap between their qualifications and the demands of the job market. As per the Periodic Labour Force Survey (PLFS) 2019-2020, conducted by the National Statistical Office (NSO), only 2.4% of Indians aged 15-59 years have received formal vocational or technical training. This highlights a significant gap in skill development, particularly in sectors requiring specialized technical skills.  
• Labour Market Dynamics: High demand for labor often leads employers to prioritize filling vacancies quickly over ensuring workers possess the necessary skills, resulting in underqualified employees in certain sectors. In India, only 2.3% of the workforce has undergone formal vocational training, according to the National Skill Development Corporation (NSDC). When Indian workers migrate to countries like the UAE and Saudi Arabia to work in industries like construction, hospitality, or healthcare, they often face challenges due to this skills mismatch. 
• Quality of Education: Educational institutions in India often focus on theoretical knowledge rather than practical skills, which hampers the employability of workers abroad. According to a NASSCOM (National Association of Software and Services Companies) report from 2021, 65-75% of the 1.5 million engineering students graduating every year in India struggle with employability due to the heavy emphasis on theoretical learning over hands-on experience. 
• Geographic and Sectoral Mismatch: Migrant workers may not always find employment matching their skills due to regional economic variations and shifting industrial demands in the global economy. According to a 2021 report by the International Labour Organization (ILO), approximately 30% of Indian migrant workers in the Gulf reported working in fields unrelated to their original skills and education. 
• Informal Sector Employment: A large number of migrant workers are employed in the informal sector, where job descriptions and skill requirements are vague, making it difficult for workers to match their skills with the available opportunities. In India, the National Sample Survey Office (NSSO) found that 92% of the workforce remains in the informal sector, and many Indian migrants abroad also face similar conditions, especially in countries where formal job matching mechanisms are not in place. 

Government Skilling Initiatives for Indian Migrant Workers

Pradhan Mantri Kaushal Vikas Yojana (PMKVY):

• • • PMKVY is a flagship program of the Ministry of Skill Development and Entrepreneurship (MSDE) aimed at increasing employability by offering industry-relevant skill training to Indian workers. PMKVY includes special components tailored for migrants seeking overseas employment, providing them with technical skills required by foreign job markets and certification through recognized frameworks. For instance, PMKVY 4.0 aims to provide training aligned with international standards to workers in sectors like construction, healthcare, and IT.

Skill Mapping of Migrant Workers:

• • • Several state governments have initiated skill mapping exercises to assess the competencies of migrant workers and match them with appropriate job opportunities. States like Madhya Pradesh and Kerala have actively engaged in identifying the skills of returning migrants post-COVID-19 to help them reenter the workforce or find overseas placements. Kerala’s NORKA Roots (Non-Resident Keralites Affairs) department, for example, has developed a digital platform to track and assess the skills of returning migrants and provide them with reskilling or job-matching services.

Pravasi Kaushal Vikas Yojana (PKVY):

• • • PKVY is a joint initiative by the Ministry of External Affairs and the Ministry of Skill Development and Entrepreneurship. It prepares Indian workers for overseas employment by providing technical skills training, along with training in soft skills such as language, cultural integration, and workplace etiquette in host countries. PKVY is particularly beneficial for workers going to the Gulf, Southeast Asia, and Europe. The program aligns the skills of Indian workers with international standards, improving their employability in sectors such as healthcare, construction, and hospitality.

India International Skill Centers (IISCs):

• • • IISCs have been set up under PMKVY in collaboration with the National Skill Development Corporation (NSDC) to offer training that specifically caters to international markets. These centers provide pre-departure orientation training (PDOT) and sector-specific training aligned with global industry requirements. IISCs ensure that workers are aware of cultural norms, legal rights, and the working conditions of the host country, thereby enhancing their adaptability and employability abroad.

Skill India Mission Overseas (SIMO):

• • • SIMO was launched as part of the Skill India Mission to train workers for international placements. This initiative focuses on sectors like construction, healthcare, and hospitality. SIMO works closely with industry stakeholders and employers in target countries to understand the specific skills required and tailor its training programs accordingly. It also ensures workers receive Recognition of Prior Learning (RPL) certification, which validates their existing skills for international employment.

Pre-Departure Orientation Training (PDOT):

• • • The Pre-Departure Orientation Training (PDOT) program is designed to prepare migrant workers before they leave India. PDOT imparts essential information about the destination country’s culture, language, labor laws, worker rights, and practical guidance on financial management. This program helps workers adjust quickly to the working environment abroad, reducing incidents of exploitation or legal issues, particularly in the Gulf Cooperation Council (GCC) countries.

Migrant Resource Centres (MRCs):

• • • These centers, established by the Ministry of External Affairs, provide guidance and support to potential and current migrant workers. MRCs offer a range of services, including legal advice, grievance redressal, pre-departure information, and skilling guidance. They also help migrant workers understand their rights and responsibilities in the destination country, assisting in smoother integration into the international workforce.

Recognition of Prior Learning (RPL):

• • • Under this initiative, the skills that migrant workers have acquired through informal channels or experience are recognized and certified, allowing them to match their existing competencies with job opportunities. RPL certificates are aligned with international standards, which helps workers gain employment in countries that demand certified skills.

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Way Forward

• Holistic Skilling: The National Skill Development Corporation (NSDC) should focus on revamping the entire skilling ecosystem, ensuring that technical training institutes, trainers, and curriculums are aligned with global industry standards.
• Sri Lankan Model: India can emulate Sri Lanka’s model, where migrant workers undergo additional training before departure, preparing them for international work practices.
• Identification of Pre-Skilled Workers: Assessing the skills of prospective migrant workers through standardized tests and certifications would allow targeted skilling programs that address specific gaps.
• Finishing Schools: Establishing finishing schools with international standards across India would ensure that workers are adequately trained in skills required by global employers. These schools could incorporate technology and internationally trained instructors.
• Language Training: Migrant workers should receive comprehensive language training, focusing on business communication and industry-specific terminology to improve job performance and integration.
• Financial Literacy: Financial management programs should be part of the skilling curriculum to help workers maximize the benefits of overseas employment and make informed financial decisions.