Putin’s visit opens doors for Indians seeking jobs in Russia: How New Delhi is tapping Moscow’s labour shortage

Russia’s interest in Indian workers

Russia’s Ural region, an industrial hub, is one of the areas urgently seeking workers. According to estimates reported in Russian media, the country needs to fill 3.1 million positions by 2030.

Alexander Vedyakhin, First Deputy CEO of Sberbank, Russia’s largest bank, highlighted this growing dependence on Indian labour. He told TASS that the bank is helping Russian companies recruit Indian workers and pointed to a projected shortage of at least three million workers. “This is a skilled workforce, and it is one of the areas of our cooperation. We help our companies here to bring in labour from India,” Vedyakhin said.

He further explained that skill development centres in India, including facilities in Maharashtra, are being considered for training workers before deployment to Russian industries, particularly around Saint Petersburg.

Why India stands to gain

India has one of the world’s largest young workforces, with 11 to 12 million people entering the labour market every year. By 2030, 68.9 percent of its population will be of working age. Many Indians typically look toward Gulf countries for employment, but Russia has increasingly become attractive. Around 100,000 Indian workers are currently employed there, and in the last quarter of 2024 alone, about 9,400 job seekers from India arrived in Russia, 2.5 times more than the previous year.

The new pact may also help rebalance the trade relationship. Bilateral commerce is heavily skewed in Russia’s favour, driven mainly by energy imports. India imported goods worth USD 63.8 billion this fiscal year, while its exports to Russia stood at only USD 4.8 billion. Expanding labour cooperation could offer an additional channel for economic value and remittances.

Experts say safeguards are key

Experts argue that Russia will need to offer competitive incentives to attract Indian workers. Harsh V Pant, Vice President of Foreign Policy at the Observer Research Foundation, told CNA that Moscow has work to do. “Russia has not been one of the primary destinations for Indian middle classes,” Pant said. He added that other countries are competing for the same labour pool. “It will be incumbent on Russia to provide those incentives that would be required for this kind of mobility to work.”

Pant also noted that the agreement should include clauses preventing workers from being drawn into military conflict. “I think it can be insisted on and it can be built into the framework, because that would be a good way of providing some degree of insurance to people who may decide to move,” he said.

Former Indian Ambassador to the United States Arun Kumar Singh said that the pact reflects the importance both countries attach to the relationship. “This visit is a signal from both countries that, particularly in the context of the current international flux, they attach value to the relationship,” he said. Singh added that historical stability underpins this cooperation. “There are options and ways to deepen the partnership in different areas, and they will both benefit from that.”