India’s skilled workforce can power the ageing world

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India’s skilled workforce can power the ageing world

Tuesday, 10 June 2025 | Dinesh Sood

India’s skilled workforce can power the ageing world

The developed world does not require capital; it requires skilled, mobile, and motivated individuals. With a cohesive strategy, legal and ethical frameworks, and a visionary approach; with its young workforce India can become the world’s hub for skilled individual exports

By 2030, the world will face an unprecedented workforce shortage of nearly 50 million in developed economies such as the United States, Germany, Japan, South Korea, Canada, the United Kingdom, and Australia. A recent Global Access to Talent from India (GATI) foundation report indicates that this deficit could soar to 250 million by 2050 due to an ageing population, declining birth rates, and shrinking domestic talent pools.

While automation and artificial intelligence (AI) may offer some solutions, the pace of technological substitution will not keep up with the demand for human capital from ageing industrial economies. In this context, India has a significant advantage with its demographic dividend of over 900 million working-age individuals, which is often seen as our greatest asset but could also become a demographic burden. To address this challenge, developing the largest pool of skilled and semi-skilled youth and India’s established reputation for adaptability and competence could serve as a vital solution.

India exports around 700,000 of its workforce overseas each year, primarily to sectors such as healthcare, transportation, technology, and hospitality. However, this number could increase to 2.5 million annually with an integrated national plan. Such growth in India’s workforce exports would not only help meet global demand.

But also, it could generate up to $300 billion in annual remittances — more than double the current $129 billion, which ranks India at the top globally. This makes foreign employment a key pillar of India’s global economic outreach.

Global Demand Hotspots

The GATI report indicates that 20 nations will account for nearly 90 per cent of the projected global workforce shortage. The United States will require 11 to 12 million additional workers, followed by the United Kingdom (5 to 6 million), South Korea, Poland, Hungary, and the Czech Republic (4 to 5 million each), Germany and Russia (3 to 4 million each), and Japan (2 to 3 million).

Other countries, including Canada, Australia, the Gulf states, Taiwan, the Netherlands, Austria, and Italy, will each need an additional 1 to 2 million workers. Additionally, smaller but high-income nations such as Singapore, Romania, Bulgaria, and Hong Kong will experience shortages ranging from 0.5 to 1 million.

The demand is apparent, and India is poised to meet it head-on.

Low to High Skills, All in Demand

The estimated global demand, 70 per cent will be for medium — and low-skilled jobs: approximately 18 to 20 million for low-skilled positions, 6 to 8 million for medium-skilled roles, and 10 to 12 million for high-skilled jobs. Therefore, India’s policy must align workforce training with this demand matrix.

The challenge is not just to send more workers abroad but to align the right skills with the right locations and industries. A new approach to migration should focus on three key strategies: unleashing global demand, enhancing domestic supply, and building a resilient long-term migration ecosystem.

Scaling up Skills

Regarding demand, India must actively engage with destination countries to harmonise skill certifications and expedite mutual recognition agreements. To scale up skills on the supply side, India needs to invest significantly in enhancing technical education, soft skills, and foreign language training, particularly in countries like Japan and Germany, where language proficiency is crucial. Key strategies to overcome these barriers include school-level language exposure, industry-centric training, and efficient grievance redressal systems. Some forward-thinking state Governments are already making progress; for instance, certain Delhi Government schools have started offering Japanese as a language option and states like Telangana are pioneering returnee integration programs.

However, these efforts require a nationwide approach and coordination. It is time for India to establish a centralised agency for global workforce mobility, similar to the Department of Migrant Workers in the Philippines or the Bureau of Manpower, Employment and Training in Bangladesh. Such an organisation could unite all stakeholders — ministries, state Governments, skill councils, recruitment agencies, and industry bodies — to coordinate recruitment, ensure ethical migration practices, and monitor global demand in real-time. Equally important is developing financial support options for migration to help cover travel, training, and placement expenses, particularly for low and middle-income workers. The country also needs robust welfare systems to protect Indian workers abroad and facilitate grievance redressal and reintegration support for returnees. Additionally, it is essential to continuously map and focus on high-demand sectors for Indian talent. Beyond the traditionally prominent fields of healthcare, hospitality, domestic work, and logistics, India should also concentrate on emerging sectors such as green jobs in renewable energy, infrastructure development, digital public goods, and sustainability-linked startups, where skill gaps rapidly widen worldwide.

Addressing Migration Barriers

Despite progress, several challenges remain: Indian qualifications are often not globally recognised, and workers face high migration costs along with risks of exploitation by unscrupulous agents. The political discourse surrounding immigration remains contentious in countries such as the US, Canada, and Australia, with much of the opposition focusing on illegal migration. However, skilled, structured, and lawful migration is a top priority for most developed economies, not out of goodwill, but due to economic necessity. These countries require sufficiently skilled staff to sustain growth, support ageing populations, and maintain critical public services. This is where India, with its youthful population and expanding training infrastructure, can position itself as a credible global partner.

Diplomatic Push

Several initiatives have already been launched. For instance, Germany is expanding its Skilled Worker Visa program, while Japan has increased the categories of apprenticeship visas available for Indians.

There are ongoing discussions with Eastern European countries regarding recognising Indian driving licenses. Meanwhile, India is signing Government-to-Government migration agreements with countries such as Australia, Austria, Denmark, Italy, and the UK. Through the Young Professionals Scheme, up to 3,000 Indians each year can reside and work in the UK for two years.

Eight-Point Strategy

India must implement an eight-point agenda to address these challenges effectively. First, it is essential to strengthen institutional coordination between central and state Governments. Second, a national migration agency should be established, incorporating international best practices.

Third, skill certification requirements need to align with global standards. Fourth, a national industry association should be created to oversee and facilitate international mobility. Fifth, frameworks for migrant financing and insurance should be developed. Sixth, a new regulatory system must be implemented to monitor recruitment agencies and prevent exploitation. Seventh, support for the reintegration of returnees should be enhanced. Finally, bilateral and multilateral agreements must safeguard labour rights and welfare.

The Way Forward

The developed world does not require capital; it requires skilled, mobile, and motivated individuals. As ageing economies seek workforce support, India is uniquely positioned to provide this talent. With a cohesive strategy, legal and ethical frameworks, and a visionary approach, India can become the world’s hub for credible, trained, and empowered individuals. The next wave of growth will not be driven by capital or commodities but by a capable workforce.

The writer is a Co-Founder and MD of Orane International, a Training Partner with the National Skill Development Corporation (NSDC), and a Network Member of India International Skill Centres. View expressed are personal.

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