Number of Indian workers heading to GCC in decline
The number of Indians working in the six GCC nations fell by a third (33 per cent) in 2016 because of lower oil prices and political tensions in the region, new data released by the Indian government has revealed.
According to India’s ministry of external affairs, 507,296 Indian workers headed to the Gulf in 2016, compared to 758, 684 the year before. The UAE experienced a 27 per cent decline – from 225, 512 to 163,731 Indian workers – and Saudi Arabia registered a slump to 165,356 from 306,642.
“There has been a decline in the number of Indian workers emigrating to the Gulf countries for employment due to the economic slowdown in GCCcountries triggered by the weak oil prices, which has resulted in lack of demand for workers,” according to the ministry of external affairs.
The lower employment figures are also having an effect on remittance inflows into India, which declined to US$62.7 billion in 2016 from $68.9bn in 2015, a fall of almost 9 per cent according to World Bank data.
Emmanuel Justus, chief executive of the Employability Bridge, which recruits IT students, said Middle East unrest as well as issues in Qatar have “created ripples” among Indians, and “raised concerns about heading out there”.
The introduction of value added tax in the GCC as well as Saudi Arabia’s new family tax are also deterring Indians from joining the region’s workforce as they could hamper saving potential, Mr Justus said.
Meanwhile, increased foreign direct investment into India is helping to transform the country’s jobs landscape by providing better paid roles.
“The pay scale in India is getting better day by day,” said Prem Verma, a recruitment firm owner. “In the Middle East, it is more or less stagnant, so the gap which was very wide is being narrowed now. Also, they find the job security is better here now, and over there they’d be working on a contract basis.”