India Gearing Up To Accommodate Returning Expat Workforce

News - Living

Monday, 11 January 2010 12:51

India is creating an emergency social security system for the homeward expatriate workers who lost their jobs in the aftermath of global economic depression.

The Prime Minister Dr. Manmohan Singh said that the Congress party-led government is committed to protecting the interests of this group and has defined the issue as a major priority.

The latest crisis to affect the Indian expat workforce is the Dubai credit crisis. It is estimated that there are 4.5 million Indians working in the Middle East. India, along with China and Mexico, tops the list of world countries receiving maximum remittances from its population abroad. Remittances are most important for the economies of developing countries.

India’s remittance for the last fiscal year totalled a colossal $50 billion. The major source of India’s remittance is North America. However, the last few years saw a significant increase in demand for labour in the oil-rich Middle-eastern countries, which shifted the balance in their favour.

The recession has affected both skilled and semi-skilled workers abroad. Dr. Singh said that a ‘return and resettlement fund’ would be set up to provide a social security cushion for the returning workers.

An Indian Community Welfare Fund is already in place in 18 countries to lend emergency support to the Indian workers. The government is also negotiating social security agreements with countries having large a large number of Indian expat workers. Agreements are already in force with Switzerland, the Netherlands and Luxembourg, and additional arrangements are being negotiated with Bahrain, Malaysia and Qatar.