India’s Role in the Global Job Market

Source: This article on India’s Role in the Global Job Market  is based on “Envisioning India as a global skill supplier” which is published on The Hindu on 24^th December 2024.

UPSC Syllabus topic: GS 3- Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment

Context: The article examines the potential and challenges of positioning India as a global hub for skilled labour in the context of evolving international labour market dynamics. It underscores the growing importance of skilled migration in addressing demographic and economic shifts, such as ageing populations, digitalisation, and economic diversification, in traditional and emerging migrant destinations like the U.S., the U.K., Canada, Germany, Japan, and Gulf Cooperation Council countries.

Why is India positioned to play a major role in the global job market?

1. India’s skilled workforce has the potential to address global skills gaps.
2. With Prime Minister Narendra Modi expressing hope for India’s significant role in the international labour market, global trends such as demographic shifts, technological advancements, globalisation, and climate change have highlighted the need for skilled workers worldwide.

How are global migration trends shaping immigration policies?

1. Major migrant destinations like the U.S., the U.K., Canada, and Gulf Cooperation Council countries, as well as emerging destinations such as Germany, South Korea, and Japan, are increasingly focusing on skill-intensive immigration.
2. These nations seek international workers to address challenges like ageing populations, declining fertility rates, digitalisation, and economic diversification.

What are the challenges India faces in bridging global skills gaps?

India lacks a comprehensive policy framework for international labour mobility. Key challenges include:

1. Fragmented Policy Structure: Existing policies are piecemeal and lack evidence-based approaches.
2. Data Gaps: Emigration data is limited to low-skilled workers migrating to select countries, hindering policy formulation.
3. Ineffective Bilateral Agreements: Current labour mobility agreements lack systematic evaluation or integration into a broader policy framework.

What steps are needed to make India a global skills hub?

India must adopt a comprehensive, skill-centred migration policy. Essential steps include:

1. Skill Demand Assessment: Identify and anticipate skill demands in key destination countries using tools like skill-forecasting exercises and big data analytics of real-time job vacancies.
2. Enhancing Skill Development: Align India’s skill development initiatives with global standards through:
   • Updating curricula in relevant institutions.
   • Reorienting International Skill Centres’ training programmes.
   • Offering customised short-term skill training for specific countries.

3. Convergence of Qualification Frameworks: Align the National Skills Qualification Framework with the qualification systems of destination countries.

How can India address the issue of return migration?

1. Return migration is becoming prominent due to temporary immigration policies.
2. India should focus on:

• Skill Accreditation: Facilitate accreditation of skills acquired abroad through specialised institutions to enable seamless reintegration into the Indian labour market.
• Effective Utilisation of Returnees: Create mechanisms to leverage the advanced skills of returning migrants.

Why is a skill-centred migration information system important?

India needs a robust labour migration information system to enable evidence-based policymaking. This system should:

1. Track key quantitative and qualitative indicators of skills and migration.
2. Regularly collate, analyse, and report data to support skill partnerships with destination countries.
3. Promote skill-centred mobility and enhance developmental outcomes.

What is the ultimate goal for India’s international labour mobility policies?

1. The aim is to transition India into a global skill capital by addressing global skill demands, raising skill quality to international standards, and ensuring the effective reintegration of returning migrants.
2. A coordinated approach involving data-driven policymaking, enhanced skill development, and global partnerships is critical for achieving this vision.