Strict rules keep expats away from India

A recent study undertaken by the Indo-American Chamber of Commerce (IACC) has revealed that India is facing an acute shortage of skilled manpower, necessitating the drafting of skilled persons from foreign countries in future. However, due to the existing stringent work laws for expatriates in India, the procedure to secure the work permit has become extremely complicated.

The report also suggests that the economic boom has resulted in India becoming a new hub for the jobs market, generating approximately 11.3 million net new jobs in an year. As per a NASSCOM report, the number of technology jobs is slated to reach 1.7 million in India by end of the year 2010.

IACC president Deepak Pahwa said, "The time is ripe for India to admit that it is moving towards a major crunch in the manpower supply. The West provides a huge pool of resources that India can easily tap into. More and more foreigners are also looking for jobs in the Asian continent on account of the jobs cuts, outsourcing and the high taxes in the Western world."

Expatriates who plan to live in India for a long span have to register with the local Foreigner's Registration Office within six months of their arrival, and the process is often criticised as too cumbersome and frustrating. In addition, the work visas in India are generally tied to a job, thereby preventing most of the foreigners from shift their job jobs on the same permit. The basic problem remains the stringent incoming procedure for the expatriates.

An expatriate said, "I had to struggle for five days at the foreign registration office to get my work permit. It makes us feel that we are not welcome here."

Expatriates are less common in India than in most of the Asian countries. Nationwide, between 20,000 to 30,000 expatriates are believed to be working in India. The number is far less than that of 100,000 foreigners currently serving the companies in China at various levels.

The number of expatriates currently working in the destinations like Singapore and Hong Kong is also higher in comparison to their presence in India.

IACC report suggests that there is a pressing need for the expatriates to work in some key sectors in India.


Anonymous said…
Look who is talking here....Mr.Deepak Pahwa IACC President, who also happens to be the Chairman of Bry Air Asia and DRI.

This person himself pays 'peanuts' to his employees....and he wants expats to come and work here! For what?

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