Harnessing India’s demographic advantage to emerge as the global talent powerhouse
India’s demographic landscape presents a unique opportunity for economic growth and global influence. With a population exceeding 1.4 billion, the country boasts a significant working-age demographic. According to SBI Research, the working-age population (ages 15–59) is projected to reach approximately 64.4% in the upcoming Census, with expectations to increase to 65.2% by 2031. This trend positions India (with a median age of 28) favorably compared to aging economies like Japan (median age of 48), Germany (47), China (38), the United States (38), and the United Kingdom (41). While these nations face declining working-age populations and rising dependency ratios, India’s large, trainable, and English-speaking workforce is poised to fill the global talent gap. Recognizing this unique demographic advantage, the Global Access to Talent from India (GATI) scheme seeks to capitalize on this vast workforce, addressing both India’s domestic growth and the global labor need.
What is the GATI Scheme?
The Global Access to Talent from India (GATI) initiative is a collaborative effort between The Convergence Foundation, the Godrej Foundation, and TeamLease Services. Building on India’s growing role as a key labor supplier to the world, the GATI scheme aims to formalize this migration and align it with the country’s economic and geopolitical objectives. It seeks to address the growing demand for skilled labor worldwide by facilitating ethical and structured migration of Indian talent. The scheme focuses on three primary objectives:
- Generating Employment Opportunities: India’s overseas migration trends highlight its growing role as a global labor supplier, with nearly 400,000 Indians receiving emigration clearances for employment abroad in 2023—up from around 133,000 in 2021—reflecting a significant rise in international demand for Indian workers. Key destination countries include Saudi Arabia, the UAE, Kuwait, Qatar, and Oman, particularly in sectors requiring skilled and semi-skilled labor. Building on this momentum, the scheme sets an ambitious target to increase annual overseas migration of skilled Indian workers to 2–2.5 million by 2030. This expansion aims to create substantial employment opportunities, boost remittance inflows, and position India as a leading provider of global talent.
- Expanding Remittances: Remittances play a crucial role in India’s economic growth, and the GATI scheme aims to enhance this contribution. In 2023, India received a record $125 billion in remittances, a 12.3% increase from the previous year, accounting for 3.4% of the nation’s GDP. The United States stands as the largest source of these funds, followed by the United Arab Emirates, the United Kingdom, Singapore, and Canada. The GATI scheme aims to further enhance this inflow by increasing the annual overseas migration of skilled workers, potentially unlocking an additional $170 billion in remittances over the next decade.
- Boosting India’s Global Talent Brand: The substantial remittance inflows not only provide financial support to families but also contribute to India’s economic resilience. By positioning India as a trusted partner for circular migration, the GATI scheme seeks to leverage this financial strength to enhance India’s global talent brand. This strategic approach aims to attract further investments, foster international collaborations, and solidify India’s reputation as a hub for skilled professionals.
Implications for Job Creation and Economic Prosperity
India’s youthful population not only presents an opportunity to meet global labor demands but also offers a pathway to significant job creation and economic prosperity domestically. By aligning the GATI scheme with skill development initiatives and gender inclusivity, India can maximize this potential. The initiative places a strong emphasis on addressing skill gaps through focused investments in education and vocational training. Equipping individuals with the necessary skills that meet global standards, will help India enhance the employability and productivity of its workforce.
Furthermore, the GATI scheme aims to foster inclusive growth by specifically targeting the increase of female labor force participation. By offering opportunities for women in the global workforce, the scheme will help to empower women and thus contribute to a more diverse and resilient economy. In addition, the GATI initiative will strengthen facilitate international collaborations that will promote knowledge exchange, technological advancements, and the building of stronger diplomatic ties. Through these efforts, India is poised to enhance its role in the global economic landscape while driving sustainable and inclusive development.
Challenges and Considerations
As the world economy becomes more interconnected, the demand for skilled labor is increasing, and India’s vast pool of young talent presents an opportunity to address skill shortages in foreign markets. To maximize this potential, it is crucial that India develops policies that facilitate the smooth migration of its workforce for short-term employment abroad. While the GATI scheme offers substantial opportunities, several challenges must be addressed at both the domestic and international levels:
- Accelerate Skill Development – With rapid technological advancements and changing industry standards, it is essential for India to bridge these gaps to ensure its workers are equipped with the skills required by global employers. Investment in education, vocational training, and skill certification programs aligned with international labor market requirements will be pivotal in making Indian workers competitive on the global stage. The government must collaborate with industry leaders, educational institutions, and international bodies to design training programs that meet global standards. Additionally, the establishment of an accreditation framework that recognizes Indian skills in international labor markets will enhance the credibility of Indian workers and ensure their employability abroad. These efforts should be backed by robust policies that incentivize the development of technical expertise in high-demand sectors such as healthcare, IT, engineering, and renewable energy.
- Fostering Equitable Growth – The GATI initiative aims to foster inclusive growth by addressing gender disparities in the labor market. To achieve this, policies must be put in place to create a supportive environment for women workers, both domestically and internationally. This includes ensuring equal opportunities for training and employment, along with safeguards against discrimination and exploitation. Support structures such as childcare facilities, gender-sensitive workplace policies, and mentorship programs will play a crucial role in encouraging women’s active participation in the global labor market.
- Global Partnerships – In addition to these domestic policies, enhancing global partnerships is a key component of the GATI scheme. By positioning India as a trusted partner in international short-term migration, the country can attract and benefit from international collaborations. Circular migration, where workers move temporarily across borders for employment opportunities, will require agreements between India and other countries to ensure the fair treatment of workers, compliance with labor laws, and the recognition of Indian qualifications abroad. The Indian government must work closely with foreign governments to create bilateral agreements that govern the terms of migration, workers’ rights, and post-employment opportunities. These agreements should address issues such as visa policies, social security, workers’ compensation, and portability of benefits, ensuring that Indian workers are treated fairly and with respect in their host countries.
- Regulatory Transparency – Regulatory frameworks must be put in place to monitor and safeguard the recruitment process to prevent exploitation by unscrupulous agents. There should be strict guidelines regarding the fees charged to workers, ensuring that these are reasonable and transparent. A formal mechanism for verifying job offers, employers, and the terms of employment should also be established to prevent fraud and human trafficking.
- Reintegration of Workers – To ensure the sustainability of the GATI scheme, attention must also be given to the reintegration of returnee workers into India’s workforce. Bilateral agreements can be made to ensure that Indian workers have access to grievance redressal mechanisms, fair wages, and safe working conditions. Furthermore, policies regarding repatriation and reintegration of workers returning to India should be developed, ensuring that they are supported in transitioning back to the domestic job market. This could involve skills retraining or job placement services to help returnees reintegrate into the workforce, contributing to India’s own economic development.
Conclusion
India’s demographic advantage, characterized by a youthful and dynamic population, presents a significant opportunity to bolster its position in the global labor market. As External Affairs Minister S. Jaishankar emphasized, “Foreign policy is a reflection of what happens at home, and it is also a driver of what happens at home.” This underscores the interconnectedness of domestic progress and international influence.
The GATI scheme reflects this vision by aligning India’s human capital with global labor needs. As India navigates the challenges and opportunities presented by the GATI scheme, it has the potential to transform its demographic dividend into a strategic asset, fostering sustainable economic growth and strengthening its position on the global stage. With targeted policies in place, India can convert its demographic dividend into a strategic asset, advancing national goals during the ‘Amrit Kaal’ and beyond.
