India's blue-collar workers are now filling Russia's labor shortage
What's the story
India's blue-collar workforce is increasingly heading to Russia, with a surge in demand for skilled welders, tailors, carpenters, and steel fixers. The trend comes as the Eurasian nation grapples with a prolonged war and a shrinking labor force. Overseas recruitment firms have noted over a 60% increase in demand for Indian workers in recent years, with further growth expected after India and Russia agreed to enhance labor mobility.
Recruitment surge
Russia's labor needs and India's skilled workforce
Siddhartha Mallick, co-founder and MD of Globeskills International Pvt Ltd, an overseas recruitment company, said Russian companies are looking for a range of skilled workers. These include tailors, carpenters, steel fixers, welders, and insulators. He added that the demand has increased from 300 welders a year between 2018-2020 to 500 every year now.
Population decline
Demographic challenges and labor requirements
Like many developed nations, Russia is dealing with an aging and declining population. The country's total fertility rate (TFR) is around 1.41 children per woman, well below the replacement level of 2.1 needed to maintain its population size. In July, the country's labor minister said it would need to add 11 million workers by decade's end.
Labor source
India emerges as a key source of labor for Russia
Traditionally, Russia has relied on temporary workers from Central Asia. But now, it is increasingly looking to India for labor. The country issued work permits to nearly 72,000 Indians in 2024, almost a third of its total foreign worker quota. This comes amid the Ukraine war and the subsequent deployment of many Russians on the frontlines, which have further increased labor demand.
Agreement impact
India-Russia labor mobility agreement and its implications
The Ukraine war and US sanctions have brought India and Russia closer, resulting in a labor mobility agreement signed in October. Indian foreign secretary Vikram Misri called it the "centerpiece" of the understandings reached during Russian President Vladimir Putin's visit to India on December 5. He said Indian skilled workers, especially in IT, construction, and engineering, will help meet Russia's labor needs and deepen bilateral cooperation.
Hiring process
Recruitment firms and worker compensation
Manpower firms like Globeskills are capitalizing on this demand by using their extensive networks to find suitable candidates. The company mainly finds workers from West Bengal, Andhra Pradesh, Bihar, and Tamil Nadu. Workers going to Russia earn a minimum of ₹50,000 per month, much higher than what they would get in India. Russian employers also provide food and accommodation for these workers at mines, refineries, and oilfields.