Russia Looks To India To Fulfil Its Skilled Labour Shortages

Russia and India area set to sign off on an labour migration deal, an agreement will permit a flow of skilled Indian workers to Russia, Indian Ambassador to Russia Vinay Kumar has said. New Delhi and Moscow are actively discussing a memorandum of understanding to establish a Migration and Mobility Partnership Agreement, aiming to facilitate an orderly provision of skilled Indian professionals to Russia.

Kuma stated that “The demographic dynamics between India and Russia provide a unique opportunity for mutual benefit. Skilled professionals from India, especially in the fields of information technology, healthcare, and mechanical engineering, can meet Russia’s workforce needs and strengthen cooperation.

New Delhi is looking at “simplifying procedures and ensuring safe conditions” for Indian workers to come and work in Russia, Kumar explained. The agreement which is being discussed will provide a “structured framework for labour exchange, educational cooperation, and technology transfer.” he added.

Russia’s economy is booming but hampered by very low unemployment rates – meaning Russia’s potential is restricted due to lack of available workforce. India however has a very strong historical expatriate workforce who have been deployed around the world and especially in the Middle East.

Wages for skilled workers vary throughout India, but range between ₽12,500 to ₽28,000 per annum depending on location and industrial sector, with an average of about ₽20,000 per annum. The average skilled worker in Russia earns an average of about ₽100,000 per month. There is a distinct economic advantage for Indian workers to look to employment in Russia. India is also experiencing a demographic dividend – its average worker age is just 28.

In FY 2023-2024, remittances from the Indian diaspora, as reflected in private transfers and in the budget, are almost double the $70.9 billion in net foreign direct investment and portfolio investment received by India over the same period. India has become the world’s largest recipient of remittances from abroad, receiving about $107 billion, with an estimated $129 billion in remittances from Indian workers abroad in FY 2024-2025