As Japan is facing labour force shortage of 6.44 million people by 2030, the Union Cabinet chaired by Prime Minister Narendra Modi has approved a memorandum of cooperation between India and Japan that would allow the movement of skilled workers between both Asian allies, reports The Economic Times.
This agreement would allow Indian workers a new status of residence under ‘Specified Skilled Worker’ by the Japanese government. It must also be noted that Tokyo, capital of Japan, alone will be short of 1.33 million workers.
“The idea is to enhance people-to-people contacts, foster mobility of workers and skilled professionals from India to Japan. Under this MOC, a joint working group will be set up to follow up the implementation of the memorandum of cooperation,” the cabinet statement said.
The Indian government has listed the 14 sectors that will benefit both nations from this agreement. They are nursing care, building cleaning, material processing, industrial machinery manufacturing, electric and electronic information related industry, construction, shipbuilding and ship-related industry, automobile maintenance, aviation, lodging, agriculture, fisheries, food and beverages manufacturing, and foodservice industry.
This will be a blessing for both nations as the skilled workers from India will help Japan meet its labour shortages, support the local economy and at the same boost India’s remittance economy.
According to the World Bank, India is the largest recipient of remittances followed by China, Mexico, the Philippines and Egypt.
The Modi government has plans to turn India into a leading supplier of skilled workers to the global market through its domestic skill training programmes like Skill India.