If you’re considering moving abroad for work, there’s some positive news for Indians: it is more financially advantageous for Indians to move abroad, according to the latest World Development Report by the World Bank. The report reveals that Indian workers can see a 120% increase in their income outside India, while internal migration within India only results in a 40% increase in personal income.
The report argues that migration can result in significant wage increases for individuals with skills and attributes that match the needs of the destination society, and these gains often exceed what could be achieved from internal migration within the country of origin. Low-skilled workers from less developed and developing countries, such as India, benefit even more from moving abroad.
For instance, a low-skilled Indian worker is likely to see a 500% increase in income in the United States, and in the United Arab Emirates, they can earn 300% more than in India.
According to the report, these gains are so significant that it would take decades for the average low-skilled worker in certain countries of origin to earn the income they could achieve by migrating to a high-income country, given the current rates of economic growth. The International Labour Organisation defines low-skilled work as work that involves simple and routine tasks that require the use of handheld tools and often physical effort.
Although the migration of talented Indians to developed countries has been labeled as a “brain drain,” the World Bank report suggests that this brain drain has played a role in India’s Information Technology revolution. The report argues that Indian migrants, such as Sundar Pichai, Satya Nadella, and Arvind Krishna, have not only succeeded in Silicon Valley but also become integral parts of the Indian diaspora, the world’s largest.
The report further notes that these successful Indian migrants have contributed to the development of industries in India by transferring knowledge and fostering innovation. In fact, firms established by returnees accounted for roughly 90% of firms in software technology parks in Bangalore in 2006.
In many cases, migration to developed countries can also economically benefit the country of origin. Remittances from migrants can provide a stable source of income for families and support investments in education, healthcare, housing, and entrepreneurial activities. India is the largest beneficiary of remittances in the world, having surpassed the $100 billion mark in 2022.
A significant portion of remittances to India comes from migrants living in the Gulf, with low-skilled Indian migrants in Gulf countries sending nearly 70% of their earnings to their families. Approximately 50% of India’s migrant population works in Gulf Co-operation Council (GCC) countries, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, according to India’s Ministry of External Affairs.
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