In a major move aimed at shoring up Taiwan’s US$790 billion economy, India is planning to send as many as 100,000 workers to the island as early as next month.
This is also due to Taiwan’s ageing problem as a crisis-in-making, and to ward off its impacts on its strong economy with Indian workers to play a huge role.
The workers will be employed at hospitals, factories and farms, as the unemployment rate in the self-ruled country falls to the lowest levels.
Both nations are expected to sign an employment mobility agreement by December. Arindam Bagchi, a spokesperson for India’s Ministry of External Affairs (MEA), also confirmed Thursday (Nov 10) that the Taiwan-India jobs pact was in the final stages of negotiation.
Taiwan’s labour crisis
Taiwan is expected to become a “super-aged” society by 2025. It means that elderly people will account for more than 20 per cent of its population by that year.
India is looking to fill this labour gap in the East Asian economy, with a plentiful of young and talented workforce employable worldwide.
Taiwan has reportedly promised the Indian workers’ pay parity with locals and also insurance benefits. As of now, a mechanism to certify the health of Indian workers willing to move to Taiwan is still being worked out, people familiar with the discussions said.
In Taiwan, where the unemployment rate dropped to the lowest levels since 2000, the government needs workers to keep the US$790 billion trillion economy going.
India pushing for job pacts
India, now the world’s most populous country, is aggressively pushing for job pacts with developed economies. This leads to a win-win situation where the host country finds it easier to overcome the labour crisis at home.
The job pacts also help India rein in the rising domestic unemployment levels, while also ramping up the potential of increased foreign remittances.
So far, New Delhi has signed such agreements with 13 nations, including the UK, Japan, France, and most recently Israel.