GS Paper 3
Syllabus: Indian Economy: Employment
Context: The article is in continuation to the previous article published two days ago on India’s jobs crisis.
Recent Developments Regarding Rising Demand for Indian Labour:
| Rising Demand for Indian Labour | Developed countries face labour shortages due to rising costs and inflation. |
| Countries Seeking Indian Workers | Greece (for seasonal agricultural workers), Italy (for municipal bodies), Israel (42,000 workers, potential expansion), France (agreement in 2018), and a recent partnership with Italy. |
| Reasons for Demand | Greece facing a shortage of 70,000 workers for agricultural production. Italy needs workers for municipal roles in depopulated towns. Israel seeking foreign workers to fill 90,000 jobs previously held by Palestinians. |
Status:
As per recent government data, there are around 13 million Indian nationals abroad including labourers, professionals, and experts. The highest being in UAE (around 35 lakhs)
Government Steps:
| Steps | |
| Pravasi Kaushal Vikas Yojana (PKVY) | Skill development initiative by the Ministry of External Affairs in partnership with the Ministry of Skill Development and Entrepreneurship. Focuses on training and certifying the Indian workforce for overseas employment. |
| Skill India International Centres (SIICS) | The government announced 30 SIICS in the 2023-24 Budget. Provides destination-based skilling, re-skilling, immigration assistance, and post-placement support. Offers domain skills training on international standards and pre-departure orientation training (PDOT). |
| Labour Agreements | India has signed 17 agreements with various countries between 2015 and 2023 to facilitate the movement of labour |
Benefits of Sending Indian Labor Overseas:
| Benefits for India | |
| Experience | Overseas labour migration provides international experience to labourers |
| Incomes | Workers in developed countries earn higher wages, returning with savings that can be utilized to build assets in India (Remittances). The vast labour surplus minimizes the impact of shortages. |
| Goodwill | Skilled Migrant labourers act as informal ambassadors of India |
However, sending Indian labour overseas is not a comprehensive solution to India’s unemployment problem. The current composition of the workforce, with over 57% being self-employed, highlights the necessity for creating more gainful employment opportunities. What is needed is for India to take action by concurrently concentrating on job creation domestically and bolstering diplomatic efforts to promptly address challenges encountered by Indian workers abroad.
