India’s new labor mobility bill aims to curb brain drain and boost worker protections abroad
India and the UK have signed the Comprehensive Economic and Trade Agreement (CETA), bringing significant relief to Indian firms. The deal exempts Indian workers temporarily posted in the UK from paying British social security contributions for up to three years, potentially saving Rs 4,000 crore annually. This move signals India's shift towards active engagement in negotiating the terms of its workers' mobility overseas.
India is proactively pursuing agreements with host nations to maximize benefits from labor mobility. The Ministry of External Affairs has proposed the Overseas Mobility (Facilitation and Welfare) Bill, 2025, which aims to facilitate the safe and orderly return of Indian workers from abroad and their reintegration into the Indian economy.
The Bill seeks to ensure that Indian workers return home after completing their overseas work stints, addressing concerns about brain drain. This comes amidst a global labor shortage, with a Boston Consulting Group study estimating a shortfall of 45-50 million workers by 2030, up from just 5 million in 2023. Countries like Germany and Japan are actively seeking Indian workers to fill these gaps.
The proposed Overseas Mobility Bill, 2025, replaces the outdated Emigration Act of 1983 with a comprehensive framework for overseas employment and reintegration. By securing better terms for Indian skilled workers and professionals abroad, the government aims to harness the potential of global labor mobility while safeguarding the interests of its citizens.
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