MoUs for Skill Development and Labour Mobility: India’s Strategy for Global Workforce Integration

Abstract

Skill Development and Labour Mobility play a pivotal role in the modern global world, significantly impacting the economic growth of a country, especially in the case of India. This research paper meticulously explores the evolving technologies which go hand-in-hand with the evolving skills in demand. It provides an in-depth analysis of the opportunities for India in skill development and labour mobility along with the present initiatives that have been undertaken in India. These include the Memorandum of Understanding (MoUs) and other international agreements signed to facilitate the process of labour mobility and strengthen global relations. A major step was the introduction of the Skill India Mission of 2015 which has spurred further initiatives by the government to bridge skill gaps. With the developed nations facing the problem of the aged working population, India, being the most populous and labour-intensive country in the world, is well-positioned to take the fame. But what the Indian workers lack are the skills that are required in this digital world like- AI, data science, robotics, and other industry-required skills. Furthermore, there has also been a mismatch of skills taught in India to the ones required in the industries. This analysis not only revolves around the initiatives that have been taken by India but also proposes prospective solutions for future advancements in the strategies being taken, ensuring future advancements for the Indian workers in the global markets. 

Introduction

When it comes to globalisation, the Indian economy has come a long way. The term globalisation is used in reference to the integration of international economies and highlights the growing interdependence of the world economies on each other. The world has seen two major crises since the year 2020. The world economy took a dip with the spread of the coronavirus pandemic, which in turn forced businesses to shut down, and just when the world economy was gradually starting to recover, it was hit by the Russian invasion of Ukraine in February 2022. Initially, there were fears of global recession, but as of January 2024, the world economy was stable due to rising consumer confidence. Following this, Iran’s recent attack on Israel has caused a risk of a potential war between them. The conflict could disrupt crucial oil and gas imports via the Strait of Hormuz, leading to higher oil prices, increased inflation, and economic instability in India. The Middle East remains a key region for India’s energy imports despite growing Russian supplies.

Countries worldwide are facing labour market changes, technological advancements and rise of new industries. With India, being a labour intensive country, has a unique opportunity to place itself in the global talent hunt list. Leveraging strategic Economic Memoranda of Understanding (MoUs) focused on skill development and labour mobility play a significant role in enhancing global workforce integration.

2.1. Global Workforce

The global workforce, also known as the international workforce, is steadily expanding as companies are getting more liberal to expand their operations. Between 2019 and 2020, there was a sudden fall in employment from 3.3 billion to 3.19 billion due to the Covid-19 pandemic.  But as of 2024, there are approximately 3.5 billion people employed worldwide. Although, there is a large gap between the formally and informally employed people. The majority of informal workers are found to be residing in Africa and Southeast Asia, with 90 percent of them working in the agricultural sector. Women’s employment has also taken an upsurge. Women’s participation rate varies depending on the region.

Click Here To Download The Paper

Author : Manvi Jalan