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The European Union (EU) and India have recently agreed to a trade deal which includes an MOU to allow “an uncapped mobility for Indian students”, according to officials, allowing Indians greater ease to travel, study and work across EU states. India's largest and most valuable export to the world is its people who last year sent $135 billion in remittances to their home country. Going by the numbers, the Indian economy is a tiny fraction of the European Union economy. Indians make up 17.8% of the world population but contribute only 3.3% of the global GDP. The European Union, on the other hand, has just 5.6% of the global population and produces 17.8% of the world's economic output.
Indians are currently the seventh-largest migrant group in Germany. Just the talk of "uncapped mobility" from India will trigger a backlash across Europe where far-right parties opposed to all immigration are gaining popularity. There have been high-profile hate incidents against Indians in several European countries recently. While the rise of the AfD (Alternative for Germany) has increased hatred against Indian migrants, the arrival of the far-right in the mainstream political system in Germany has also started a conversation on racism that otherwise would have been swept under the rug.
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| EU-India Migration Agreement Tweeted by Modi |
Undaunted by the anti-immigrant sentiments, the Indian government has quietly signed labor mobility agreements with at least 20 countries over the past half-dozen years — in Europe and Asia, including the Persian Gulf — all with developed economies and most without much history of hiring Indian workers, according to the New York Times. Arnab Bhattacharya, the chief executive of the "Global Access to Talent From India Foundation" think tank, estimates that India could double its current export of 700,000 workers a year to 1.5 million by 2030. His country, he told the NY Times, “has a workforce that should be servicing the world and not just India.” Their real aim is to deal with the ongoing unemployment crisis in India.
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| EU-India Migration Agreement Tweeted by Modi |
Indian economy is not generating enough jobs for the nation's growing working age population. Corporate profits of Indian firms are growing at a much slower pace than the 8.2% GDP growth in its most recent quarter. Net income for Nifty 50 Index firms likely rose 1.1% in the three months through Dec. 31 from a year earlier, according to analyst estimates compiled by Bloomberg. That would be the slowest pace in five quarters, weighed down by deteriorating margins for banks. Falling profits and declining currency are causing foreign capital to flee Indian markets. Foreign Portfolio Investors (FPIs) pulled out over $20 billion from Indian equities in 2025, marking a severe, sustained withdrawal that has continued into 2026. Net Foreign Direct Investment (FDI) has seen consecutive monthly outflows, including $1.67 billion in October and $446 million in November 2025. Investment banker Ruchir Sharma wrote about it in a Financial Times op ed titled "India needs to import more capital and export fewer workers". Ruchir wrote: "Most strikingly, corporate revenue normally grows (or shrinks) with the economy — in any country. But last year corporate revenue growth for listed companies in India decelerated to barely half the GDP growth rate"
Related Links:
Germany Introduces New Visa Options for Pakistani IT Professionals
https://www.techjuice.pk/germany-introduces-new-visa-options-for-pa...
Germany has introduced updated immigration rules aimed at attracting skilled IT professionals from around the world, including Pakistan, by simplifying visa procedures and expanding residency options for technology workers.
The new framework, introduced under policies linked to Germany’s Federal Ministry for Economic Affairs and Climate Action, provides multiple pathways for qualified IT professionals seeking employment and long-term residence in the country. The updated rules also establish revised salary thresholds effective from January 2026.
One of the primary routes is the Residence Permit for Skilled Workers, which is available to applicants with recognized academic or vocational qualifications and a confirmed job offer from a German employer. Applicants aged over 45 must meet a minimum annual salary requirement of €55,770 or demonstrate adequate pension provisions.
Germany is also continuing its EU Blue Card program for highly skilled professionals. To qualify, applicants must possess a university degree recognized in Germany and secure a relevant job offer. The minimum annual salary requirement has been set at €45,934.20, while salaries exceeding €50,700 are exempt from approval by the Federal Employment Agency.
The reforms also create opportunities for experienced IT professionals who do not hold a university degree. Under one pathway, applicants with at least three years of IT experience within the previous seven years can qualify with a valid job offer and compliance with salary requirements. Another simplified route allows individuals with two years of recent IT experience to apply if they secure employment offering a minimum annual salary of €45,630.
Germany has also introduced flexibility for employers operating under collective bargaining agreements, allowing certain salary exemptions while ensuring workers receive equivalent benefits and protections.
The reforms are intended to address Germany’s growing shortage of skilled technology workers and strengthen the country’s position as a leading destination for global IT talent.
INSIDE INDIA
Inside India newsletter: Modi is exporting India’s workforce to a world turning against immigration
https://www.cnbc.com/2026/07/15/modi-export-india-workforce-anti-im...
POINTS
Labor mobility deals have become a feature of many recent bilateral deals India has signed with Russia, Israel, New Zealand, Finland, and the European Union.
Modi’s push for labor exports comes as remittances, roughly 3% of India’s GDP, have become an important source of government finances.
Unlike Chinese workers, who are returning home to aid local technological advancements, experts say India lacks the opportunities to provide cutting-edge work to its highly skilled labor force.
The big story
From Europe to New Zealand and Russia to the Middle East, labor mobility pacts have become a common feature in many of the recent deals India has finalized with its trading partners.
The lack of opportunities for highly skilled labor in the country, with one of the largest working-age populations, coupled with India’s increasing reliance on remittances to fund its finances, is driving the government to secure passage for its workforce overseas.
Unlike China, which has become a manufacturing powerhouse generating jobs at scale, India has not been able to fully address its “grave challenge of an unemployment rate hovering around 5% to 6%,” Jayant Krishna, senior fellow and chair on India and emerging Asia Economics at the Center for Strategic and International Studies, told CNBC.
“If we add under-employed people, the rate jumps up alarmingly,” Krishna said, adding that by placing skilled and semi-skilled workers in overseas markets, India manages “the aspirations of our ever-expanding working-age population.”
India’s government has become increasingly reliant on money sent home by its overseas workers, receiving the highest amount of remittances globally, equal to roughly 3% of its GDP, experts said.
The backlash
But this policy doesn’t come without resistance, especially at a time when anti-immigration sentiment is on the rise across the world. Last week, Prime Minister of New Zealand Christoper Luxon hailed the country’s free trade deal with India that also enhances labor mobility for Indian workers.
“You have enriched our country economically, socially and culturally,” Luxon told a crowd of Indian diaspora in Auckland. But the deal, which is awaiting final clearance from parliament, faces strong opposition from coalition members of Luxon’s government.
The country’s Foreign Minister, Winston Peters, in a post on X, said the trade deal with India is creating “unprecedented immigration settings” and will make it harder for “kiwis finding jobs.” Months earlier, Shane Jones, a minister in the Luxon government and a member of Winston’s party, NZ First, said the deal would lead to a “butter chicken tsunami” coming to New Zealand.
Modi’s recent visit to Australia - where India overtook the England as the top country for Australians born overseas last year - also sparked anti-India protests. Australian social media personality Hugo Lennon heckled Modi in Melbourne, shouting, “No more Indians! This Country is for Australians,” according to local media reports.
Meanwhile, the U.S., one of the biggest recipients of Indian workers, is tightening visa rules even as negotiations are ongoing for a trade deal with New Delhi. Washington’s move has only given India an added incentive to strike labor mobility deals to export workers to Russia, Israel and the European Union, and Finland earlier this year.
The U.S. created H-1B visas in 1990 and they’re used heavily by U.S. tech giants to bring in highly skilled workers from overseas. India has been, by far, the biggest recipient of H-1B visas, but the Trump administration is trying to drastically reduce the country’s reliance on the scheme.
INSIDE INDIA
Inside India newsletter: Modi is exporting India’s workforce to a world turning against immigration
https://www.cnbc.com/2026/07/15/modi-export-india-workforce-anti-im...
India observed the vicissitudes of H-1B politics in the U.S. and “drew the evident lesson: do not leave your diaspora’s access to foreign labor markets hostage to another nation’s domestic politics,” Ronak D. Desai, visiting fellow at Stanford’s Hoover Institution, told CNBC.
“Mobility grounded in treaty is politically far more durable than mobility granted by unilateral visa policy,” he added.
The Chinese example
India’s move to export labor stands in sharp contrast to its fellow billion-plus-people neighbor, China, which has seen a flood of returnees in the last decade, partly due to the geopolitical tensions that led to the expulsion of Chinese scientists from the U.S.
China has a term for the phenomenon: Haigui, literally, a “returning from across the sea,” according to the Boym Institute think tank.
“Haigui” has seeded its semiconductor, biotechnology, and artificial intelligence sectors, experts said, adding that Beijing also created the domestic capacities to absorb this highly skilled talent.
“Professionals with portable skills have been extremely valuable to help China’s technological advancement,” Rafiq Dossani, adjunct senior Economist at RAND Corporation, told CNBC.
While Beijing offers both incentives to return and infrastructure, India lacks the ability to spur development of advanced technologies like artificial intelligence, he added.
India spends about half of one percent of its GDP on research and development, lower than the global average of 1.7% and significantly below the over 3.5% spent by the U.S.
In the absence of comparable opportunities in India, the Modi government does not see “brain drain” as a major concern, Pramit Chaudhuri, South Asia practice head at Eurasia Group, said.
Rather, they are choosing to promote it, he added.
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