A new report reveals that low-skilled Indians who migrated to the US happen to see a 500 percent increase in their income. Read to know about the findings from the World Development Report.
What does the World Development Report reveal?
As per the latest World Development Report by the World Bank, it is more viable for Indians to move out of the nation. It highlighted that Indian workers see a 120 percent rise in their incomes when abroad. However, internal migration leads to a 40 percent rise in their incomes. Additionally, moving abroad is highly rewarding for low-skilled workers from developing and less developed nations. As per the International Labour Organisation, low-skilled work is defined as “simple and routine tasks which require the use of hand-held tools and often some physical effort.”
“Migration leads to large wage increases for most people whose skills and attributes are a strong match with the needs of the destination society. These gains often exceed what could be achieved in the country of origin, even from internal migration to relatively better-off locations,” stated a report. Moreover, low-skilled Indian workers may see a 500 percent increase in their incomes after moving to the US. On the other hand, moving to the United Arab Emirates may see a 300 percent rise compared to their incomes in India. “The gains are so large that at current rates of economic growth, it would take decades for the average low-skilled person working in some countries of origin to earn the income they achieve by migrating to a high-income country,” highlights the report.
More on the economic migration
Media depicts the migration of talented Indians to the West as a “brain drain”. “Indian migrants in California’s Silicon Valley have launched large Information Technology–related firms in India. In 2006, firms established by returnees accounted for some 90 percent of firms in software technology parks in Bangalore,” reveals the report.
Moreover, migration to developed nations can economically help the country. “Remittances are a stable source of income for migrants’ families, supporting investments in children’s education, health care, housing, and entrepreneurial activities,” explained the World Development Report. India is a large beneficiary of remittances. A significant part of these remittances are from migrants working in the Gukd. Low-skilled Indians who move to the Gulf send about 70 percent of their income to their families living in India.