According to the latest World Development Report by the World Bank, Indian workers can significantly increase their income by moving abroad. The report states that internal migration within India would only add around 40% to personal incomes, whereas Indians who move abroad see a rise in income by up to 120%.
The report also found that moving abroad is even more beneficial for low-skilled workers from less developed and developing countries, such as India. For instance, a low-skilled Indian worker in the US could see their income rise by a staggering 500%. The United Arab Emirates is also a popular destination for low-skilled workers who can earn 300% more than in India.
Despite concerns about “brain drain,” the report argues that Indian migration has played a significant role in the country’s IT revolution. Many Indian techies who moved to Silicon Valley have become an integral part of the Indian diaspora, helping to develop industries in India by transferring knowledge and fostering innovation.
The report also highlights that economic migration can benefit the country of origin by serving as a significant source of remittances. Remittances provide a stable source of income for migrant families, supporting investments in children’s education, healthcare, housing, and entrepreneurial activities. India is the world’s biggest beneficiary of remittances, having crossed the $100 billion-mark in 2022, with a large portion of remittances coming from migrants living in the Gulf.
Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.