The Indian economy faces mounting challenges to contain the huge numbers of new entrants to the labor market annually, which has prompted an increasing number of graduates and skilled people to migrate in search of job opportunities outside the country, according to a report published by the Financial Times.
Data indicate that Indian universities graduate about 5 million people annually, while nearly one million people join the labor market every month, which puts the economy under tremendous pressure to absorb these huge numbers, despite recording high growth rates.
In light of these data, the number of Indians residing abroad will reach about 18.5 million people in 2024, making India the largest exporting country of international migrants in the world. To capitalize on the global demand for talent, New Delhi has entered into labor mobility agreements with 26 countries.
On the economic level, this migration brings huge financial returns. India received about $150 billion in remittances from workers abroad during the past year, equivalent to about 3% of the gross domestic product, making it the largest recipient of remittances in the world.
On the other hand, the Indian economy bears huge costs due to the drain of talent, as losses from the migration of skilled people are estimated at between 35 and 50 billion dollars annually, as a result of losing part of the potential productivity gains.
The biggest challenge facing the Indian government remains its ability to create locally productive jobs to take advantage of its large population, in conjunction with the increasing restrictions of some countries on immigration policies and the import of foreign workers.
