India’s Skilled Workers Abroad: Jobs, Pacts and Remittances

As countries in Europe, Japan, New Zealand, and other markets struggle to cope with ageing populations, a declining workforce, and persistent skill shortages, India is quickly capitalising on the opportunities for its skilled and semi-skilled workforce to work abroad. External Affairs Minister S Jaishankar said India has signed or formed 28 Migration and Mobility Partnership Agreements (MMPAs), or similar agreements, with 26 countries, which have created more structured routes for Indian students, professionals and workers.

The strategy holds importance not just in the context of employment but also for the remittance economy in India, which received $135.4 billion in remittances in FY25. Amid a growing world demand for skilled labour like healthcare professionals, engineers, IT professionals, caregivers, construction workers, etc., India is trying to expand the job market for foreign nationals into a bigger economic opportunity and to make international migration safer, more formal and predictable.

India Expands Labour Mobility Agreements

The government policies on overseas employment are gradually moving from individual toward formalised (government-to-government) arrangements. These labour mobility agreements are designed to facilitate access to labour in foreign countries, to address labour shortages in those countries.

The Economic Times report says that India has inked 28 MMPAs or similar pacts with 26 countries and talks are ongoing with more countries. These were part of India's global economic diplomacy and dovetail with the nation's trade and investment ties.

One of the significant developments is the India-European Union Mobility arrangement that was signed in 2026. It seeks to promote the mobility of Indian students, workers and professionals in the EU's 27 member states. The EU has also pledged to offer unlimited mobility to Indian students, officials said in the report.

New Zealand is another growing market. The India-New Zealand framework has opened up opportunities for Indian students and skilled professionals. Certain STEM graduates can access post-study work opportunities, while a new Temporary Employment Entry pathway provides for 5,000 skilled Indian professionals to work in New Zealand for up to three years. There are also opportunities for 1,000 young Indians under the Work and Holiday programme every year.

The Japanese and Russian nations are also turning to Indians as a source of manpower to address the shortage of workers and the demographic challenge.

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Why Global Demand for Indian Workers Is Rising?

Demographic change is changing the job market on a global scale. The developed world is facing a falling working-age population and ageing populations, which leaves jobs in the economy unfilled.

This is the scale of this opportunity as highlighted by NITI Aayog's 2026 plan on international mobility. It puts the estimated number of vacancies in Europe at about 105 lakh, in the United States at around 72 lakh and in the GCC at nearly 27 lakh. The other major labour requirements are found in Japan, the UK, Canada and Australia.

India is well equipped to respond, with a large young population. According to NITI Aayog, close to 65% of India's population is below 35, and the working-age population is expected to be at its peak of 65.05% by 2030. This gives a demographic edge at a period when there are a number of destination countries that are seeing the other side of this trend.

The growing number of English-speaking professionals, a skilled workforce in India, and the availability of a large number of graduates also bolster its presence in the global labour markets.

But just because there is demand, it does not mean there will be work. Workers require qualifications that are recognised internationally, have the right language skills, and have industry certification and knowledge of the workplace requirements in the country of destination.

Healthcare, IT and Engineering Among Key Opportunities

One of the most promising sectors in foreign demand is the healthcare sector. An ageing population is increasing the demand for nurses, carers, doctors and other health professionals.

For instance, Germany needs a high number of qualified foreign employees annually, and healthcare is one of the areas in which there are major shortages. Other key sectors of demand are construction, IT and engineering.

The care economy may be a significant part of the livelihood of the Indian workforce. According to the sources quoted by the Economic Times, the nursing field, childcare and eldercare are fields in which Indian workers, especially young women, can be given focused training, and where they can find formal employment abroad.

Technology is also an important opportunity. Professionals are in demand in countries like New Zealand and Australia in IT, AI, ICT, engineering, fintech, and other related areas.

The Mobility Arrangement for Talented Early-professionals Scheme (MATES) is aimed at certain sectors such as renewable energy, mining, engineering, ICT, AI, fintech, and agritech.

This has led to a shift in India's strategy for international mobility, which is no longer restricted to conventional migration destinations or tolow-skills jobs. Increasingly, there are members who are professionals and workers with specialised qualifications.

India-Japan and India-Russia Mobility Push

Due to an ageing population and labour scarcity, Japan is fast becoming a sought-after destination for Indian workers.

The India-Japan Action Plan on Human Resource Development is aimed at enabling the movement of 500,000 people between the two countries over five years, of which about 50,000 will be skilled and semi-skilled Indians. Opportunities in healthcare, manufacturing, care, hospitality and services.

Russia is also looking to boost manpower ties with India. In December 2025, the two countries signed an agreement on temporary labour activity, as well as discussed vocational training, manpower exchange, and youth employment.

The arrangements suggest that the policy of employment abroad is becoming more diversified in terms of geographies in India. Although the Gulf is still a significant location for the Indian job market, new opportunities are also available in Europe and Asia.

Labour Mobility Could Strengthen India’s Remittance Economy

Remittance inflows from overseas employment are one of the most important economic advantages for India.

According to the Economic Survey quoted by Economic Times, India got $135.4 billion in remittances during FY25. This put India at the top of the list of remittance recipients in the world. This is especially noteworthy as it has often surpassed the gross inflow of FDI, making remittances a key component of the Indian economy.

In the NITI Aayog's vision of India in 2026, the remittance economy in India is even more elevated, with remittances reported at $137.67 billion in 2024, which is roughly equivalent to 3.5% of GDP.

Remittances can be used for household consumption, including education, housing, health care, and other costs. They also generate foreign exchange andbuild thee financial resilience of households in India.

Access to safe and regular work abroad is closely linked to the potential for further growth for Indians.

An increase in migration, however, will not necessarily lead to higher remittances. The total amount of wages that workers can actually send home may be lower than initially thought due to recruitment fees, wage theft, informal agents and other costs. This means that transparent recruitment and protection of workers is critical to India's plans.

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Formal Migration Channels Can Protect Indian Workers

One of the key aims of labour mobility agreements is to streamline and formalise migration routes.

Unscheduled workers may experience issues with excessive recruitment costs, false job offers, contract substitution, and substandard working conditions. Formal government processes can establish more definite guidelines for employment, recruitment, and workers' rights.

Responding to this report in the Economic Times, four crucial aspects that need attention have been mentioned: Qualification recognition, social-security portability, visa predictability, and transparent recruitment.

The qualifications of Indians are recognised, especially in the case of professionals. Although education and experience may be required, if the skills do not correspond with those in the country they want to work in, the worker may not find a job.

Likewise, slow visa processing can impact the use of a mobility agreement. There should be clear rules and rules of the road that govern the implementation of the government-to-government deal and predictable processing times.

Challenges India Must Address

However, there are some challenges to India's international labour mobility strategy.

Recognition of Qualifications

Indian degrees, licences and professional qualifications do not automatically qualify for recognition all over the world. This barrier can be overcome, and the ease of moving to a regulated occupation can be facilitated, through the use of MRA.

Language and Cultural Skills

Technical skills may not be enough. Good local-language proficiency is frequently required in the healthcare, caregiver,r and service sector professions. Cultural orientation is another way to help workers adjust to foreign workplaces.

Recruitment Costs

The cost of migration can be diminished by high recruitment fees. Overseas placement can be costly, and workers may incur heavy debts to finance their placement, which can make them more susceptible to debt and exploitation.

Social Security Portability

Labourers who cross borders must know about their pensions, insurance, and other social security entitlements. Improved portability provisions would improve international employment opportunities and outcomes.

Visa Processing

Mobility agreements require effective implementation. The lengthy visa processing delays may hinder workers and employers from making the best of the opportunities available.

What Indian Workers Should Expect?

The rise in mobility agreements may be an opportunity for more Indian professionals to secure legitimate opportunities in the overseas job market.

Workers should not assume that signing a mobility agreement means that they will automatically get a job or visa. Eligibility will be determined by the requirements of the individual programme, occupation, qualification, and work experience, and destination country requirements.

Job offers should be confirmed, recruitment services should be used (where applicable), and employment contracts should be understood before paying any fees to secure a job.

Skills that are in demand across the world are likely to be in high demand. Different markets have different areas with strong demand, such as healthcare, nursing, caring, engineering, construction, IT, artificial intelligence, renewable energy, hospitality and specialised technical trades.

Training of workers to meet the requirements of the destination countries will therefore be crucial in India.

States Have a Major Role in Overseas Employment

The central government, states, training institutes, employers and recruitment agencies will have to coordinate more for an international mobility strategy in India.

NITI Aayog's 2026 framework clearly calls for states to play a key role in building structured and demand-driven international mobility ecosystems. The framework proposes more effective linkage between the skills sector and international labor market needs.

States can identify areas with high potential for their workers to contribute, develop a training program for those areas, and deliver language and cultural preparation.

This may also enable smaller cities and towns to be more involved in international job opportunities rather than focusing on recruitment abroad in a select few urban areas.

Also Read: Unlocking Opportunities: Canada's Work Permit Initiative Welcomes 12,000 Skilled Workers

From Brain Drain to Global Workforce Strategy

India's policy on overseas workers is indicative of a paradigm shift in the perception of overseas migration in India.

Migration had traditionally been viewed in terms of brain drain or the loss of skilled professionals for decades. The current approach increasingly regards international mobility as an economic tool that can be beneficial to the Indian and host countries.

The destination countries benefit from workers filling in the gaps in their labor markets; India benefits from employment opportunities, remittances, experience, and better economic ties.

The challenge is to make this process a mutually beneficial one.

India must go beyond the mere goal of exporting more workers abroad. It must ensure that workers receive training where there is a real need for it, recruitment is transparent, protection is provided by enforceable measures, and workers are able to be returned with internationally recognised skills and experience.

Conclusion

As the world grapples with the challenge of labour shortages, India's expanding network of labour mobility pacts may emerge as a key component of its export labour and economic policy. India's youthful and highly qualified human resources are poised to supply the global demand in healthcare, IT, engineering, construction, caregiving, and other industries, with millions of job opportunities available in Europe, the USA, and the GCC. The opportunity for the economy is also great, especially with India being the largest remittance recipient in the world.

The effectiveness of this approach will require, however, more than just the signing of additional agreements; it will require effective implementation of this strategy through the qualification recognition, affordable and transparent recruitment, predictable visas, social-security protection, and industry-aligned skilling. Despite the fact that these systems are still developing, if they are implemented in parallel with the mobility pacts, then India can leverage the differences in its demographics to create a structured global workforce advantage and boost employment and financial prospects for Indian workers.

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