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Building a Future-Ready Workforce
Context:
The global labour market is evolving rapidly, and the skills required in 2030 will likely be vastly different from those of today.
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- A recent FICCI-KPMG study, Global Mobility of Indian Workforce, projects a significant global talent shortage by 2030.
- The study estimates a shortfall of over 85.2 million skilled workers, potentially resulting in $8.45 trillion in unrealised annual revenue.
- This is equivalent to the combined GDPs of Germany and Japan. For India, this presents a major opportunity to claim a substantial share of this economic potential.
Addressing the Talent Shortage
- To tackle this challenge effectively, India must adopt targeted strategies, foster international collaboration, and implement proactive policies to optimise workforce mobility and economic productivity.
- A well-coordinated effort involving the government, private sector, and other stakeholders is crucial for success.
Key Global Regions for Workforce Mobility
Three major regions— the Gulf Cooperation Council (GCC), Europe (including the United Kingdom), and Australia—are expected to face critical workforce shortages. However, the demand will not be uniform across these geographies.
- Healthcare: A common requirement across all three regions due to ageing populations and increased healthcare needs.
- Services Sector: In high demand across Europe, GCC nations, and Australia.
- Manufacturing & Construction: Particularly important in the GCC and Australia.
- Emerging Sectors: There is a rising demand for skills in automation, artificial intelligence (AI), big data, predictive analytics, Internet of Things (IoT), blockchain, resource efficiency, and sustainability.
Barriers to Skilled Workforce Mobility
Several obstacles hinder the smooth migration of skilled workers, including:
- Regulatory and Immigration Barriers: Complex visa procedures and strict work permit regulations make migration difficult.
- Recruitment Malpractices and Trafficking: Exploitative recruitment practices and human trafficking pose serious risks to migrant workers.
- Policy Barriers and Skill Mismatches: Many Indian degrees, particularly in fields like medicine, are not recognised in Europe, leading to underemployment.
- Language and Cultural Barriers: Language proficiency and cultural adaptation impact workforce efficiency and productivity.
India’s Response to the Challenge
To address these challenges, the Indian government has launched various initiatives:
- Bilateral Agreements and Free Trade Agreements (FTAs): Agreements with GCC nations aim to protect Indian workers’ rights, such as the Joint India-UAE Vision, which prioritises skill cooperation.
- Skill Development Programs: Designed to align workforce capabilities with global market needs.
- Digital Platforms for Workforce Support: Online recruitment systems help safeguard workers from fraudulent recruitment practices, particularly in GCC countries.
Strategic Measures to Capitalise on Global Demand
To maximise India’s participation in the global skilled labour market, the following strategies should be prioritised:
- Sector-Specific Skill Training: Workforce training should be tailored to the needs of target geographies and emerging industries.
- Regulated Recruitment Practices: Strict oversight of recruitment agencies is necessary to prevent exploitation.
- Recognition of Qualifications: International collaborations should facilitate mutual recognition of academic and professional credentials to ease workforce integration.
- Public-Private Partnerships: Governments at both the central and state levels should encourage private sector involvement in training programs and global employment facilitation.
- Promoting Circular Migration and Mobility: Temporary work visas and rotational workforce models can help address labour shortages without causing demographic imbalances.
The Political Climate and India’s Advantage
- Immigration policies worldwide are constantly shifting. While Europe may impose stricter regulations, Australia remains open to skilled migration.
- Notably, the Indian diaspora is the second-largest and fastest-growing in Australia, as highlighted in the FICCI-KPMG study.
- Despite increasing anti-immigration sentiments in some countries, skilled Indian workers continue to find opportunities abroad, largely due to the absence of significant hostility toward them.
- However, to sustain and expand this advantage, India must take strict measures to curb illegal migration.
- Preventing illegal immigration will protect workers from exploitation and enhance India’s global reputation as a trusted source of skilled labour.
