The Future of Work is Changing

The global labour market is at a crossroads. While no one can predict the future with certainty, one thing is clear—the skills required in 2030 will be vastly different from those needed today. This shift presents both a challenge and an opportunity, particularly for India.

A recent FICCI-KPMG study, Global Mobility of Indian Workforce, estimates that by 2030, there will be a worldwide talent shortage of over 85.2 million skilled workers. This could result in a staggering $8.45 trillion in unrealised annual revenue—equivalent to the combined GDPs of Germany and Japan. For India, the challenge is to ensure that its workforce is adequately skilled and prepared to claim a substantial share of this economic potential.

India's Strategic Role in the Global Workforce

To address this impending talent gap, countries need to adopt proactive strategies, strengthen international cooperation, and implement policies that promote workforce mobility. For India, this means creating a well-coordinated system that involves the government, private sector, and key stakeholders to ensure its workforce remains competitive in the global job market.

Key Global Job Markets

Three major regions stand out as crucial destinations for Indian workers:

1. Gulf Cooperation Council (GCC)

o High demand in construction, manufacturing, and healthcare.

o A large Indian expatriate population already present.

2. Europe (Including the UK)

o An aging population driving demand for healthcare and service sector workers.

o High barriers due to stringent visa policies and degree recognition issues.

3. Australia

o Open to skilled migration, particularly in construction, IT, and healthcare.

o Indian diaspora is the second-largest and fastest-growing in Australia.

Beyond these sectors, the demand for skills in automation, artificial intelligence (AI), big data, predictive analytics, blockchain, and sustainability is expected to grow rapidly across all regions.

Barriers to Global Workforce Mobility

Despite the demand, several challenges hinder the seamless movement of skilled workers across borders:

· Regulatory & Immigration Barriers: Complex visa processes and stringent work permit regulations make migration difficult.

· Recruitment Malpractices & Human Trafficking: Exploitative recruitment practices and trafficking remain serious concerns, as highlighted by Prime Minister Narendra Modi during his recent visit to the United States.

· Skill Mismatches & Policy Barriers: Many Indian degrees, particularly in medicine, are not recognised globally, leading to underemployment or unemployment of qualified professionals.

· Language & Cultural Barriers: Adapting to foreign work environments remains a challenge for many Indian workers.

India's Policy Initiatives

The Indian government has taken several steps to facilitate workforce mobility:

1. Bilateral Agreements & Free Trade Agreements (FTAs)

o India has agreements with GCC nations to safeguard workers' rights.

o The India-UAE Vision Agreement highlights skill cooperation.

2. Skill Development Programs

o Various initiatives align workers' skills with global market needs.

3. Digital Platforms for Workforce Support

o Online recruitment platforms ensure legal protection and prevent fraud.

Strategic Measures for a Skilled Workforce

To capitalise on global demand, India must focus on the following:

· Sector-Specific Skill Training: Training should be aligned with the needs of target geographies, particularly in emerging sectors.

· Regulation of Recruitment Practices: Stricter oversight is needed to prevent worker exploitation and trafficking.

· Recognition of Qualifications: Mutual recognition of academic and professional qualifications will ease workforce integration.

· Public-Private Partnerships: Government collaboration with the private sector can enhance training programs and global job placements.

· Circular Migration Models: Temporary work visas and rotational workforce systems can address labour shortages while preventing demographic imbalances.

India's Competitive Advantage

While immigration policies in some parts of the world, particularly Europe, may become stricter, Australia remains open to skilled migration. The key advantage for Indian workers is the absence of significant hostility toward them in most global markets. Even in countries with rising anti-immigration sentiments, skilled Indian professionals continue to find opportunities.

However, to maintain this edge, India must actively curb illegal migration. This will protect workers from exploitation and bolster India's global reputation as a trusted supplier of skilled labour.

Towards a $9 Trillion Economy

Addressing the talent gap is not just about employment; it is directly linked to India's economic aspirations. The Chairman of the Sixteenth Finance Commission, Arvind Panagariya, recently projected that India's GDP could reach between $6.5 trillion and $9 trillion by 2030. How close India gets to the $9-trillion mark will depend on how effectively it positions its workforce in the global economy.

As the world grapples with a talent shortage, India stands at the threshold of an opportunity. By strengthening its workforce strategies today, India can control the future of global employment while improving its own economic growth.