By Dr Jassim Hussein
During my recent visit to New Delhi, Hyderabad and Bangalore, I had the opportunity to check the latest statistics regarding Indian labour in the Gulf Cooperation Council (GCC) states. This effort fell within the framework of broader research on the welfare of migrant workers in the GCC.
Of the nearly 22 million Indians who live and work abroad, approximately six to seven million work in the GCC states. This is based on statistics from the ministry in charge of migrant workers, contained in a book on the latest developments in the Gulf published by the Institute for Defence and Security Studies in New Delhi.
South and Southeast Asia hosts the largest number of Indian workers, not the GCC, which comes in second place. However, Indian labour is more noticeable in the Gulf due to some demographics, mainly the difference in population size between the Gulf and Southeast Asia.
It is not surprising that Indians account for the largest number of expatriates among GCC workers. More importantly, Indians constitute at least one-third of the population in Bahrain, Qatar and the United Arab Emirates.
The number of Indians in the GCC is perhaps higher than desirable at a time when both the GCC and India wish to reduce the size of the immigrant workforce, which is employed at the expense of the local population.
In this respect, the Gulf is distinct from the rest of the world in allowing foreign workers to compete with their own citizens in their countries. This constitutes an application of the principles of globalization and is evidence of the openness of the GCC economies. Therefore, encouraging locals to work and promoting competitiveness in local employment is essential.
In contrast, many economies or economic entities such as the European Union place restrictions on foreign labour in order to keep employment opportunities open for locals.
The presence of Indian labour has an impact on the demographic composition of the GCC states. The sex ratio in most countries is around 50-50; however, there is a male predominance in the GCC population, apparently due to the fact that the vast majority of migrant workers, including Indians, is male.
For many, this is because limited-income labourers cannot bring their families to live with them in the Gulf. This, in turn, opens new business opportunities, as the migrant workers need to transfer money to their loved ones back home.
World Bank statistics indicate that India received remittances of up to $69bn in 2013 — the highest figure globally. It is believed that one-third of this amount came from the GCC.
Increasing the relative importance of remittances in the economy through money exchange transactions increases the value of the dollar at the end of the day.
These transfers are considered important for the sustainability of the Indian economy in general and the economy of some states in particular, especially Kerala, India’s most important source of labour for the Gulf region.
Remittances account for between 3 and 4 percent of the GDP of India, which is among the 10 largest economies in the world. However, this figure rises to about 20 percent in some local economies, such as in Kerala.
It is noteworthy that a large number of Indian workers in the GCC come from southern Indian states such as Kerala, Andhra Pradesh and Tamil Nadu. This is a reflection of international trade going back a long time. Other states such as Rajasthan also send many workers to the Gulf.
During a visit to Kerala at the end of 2013, I heard from a state official that there was a shortage in Kerala in some skills such as electrical technicians because of migration abroad. On the other hand, I repeatedly heard residents of the state being told: “If you love Kerala, please leave in order to make room for others and bring in money.”
Undoubtedly, business must be two-way to ensure prosperity and continuity. The GCC airlines benefit tremendously from the movement of Indian labour throughout the year; I confirm that it is not seasonal.
During my last visit, I gathered that Emirates is the largest foreign carrier flying to India. At that time, my source insisted that travel between India and Dubai was perhaps more frequent than flights between some Indian cities; and “this is not a joke,” he added.
Other carriers such as Qatar Airways, Etihad Airways, Gulf Air, Fly Dubai and Air Arabia fly to various cities of that sprawling country, which is considered a subcontinent. We can easily say that air traffic between the GCC states and India is heavier than that between some Arab countries.
Finally, Indian expats face many challenges, including the GCC trend of nationalising jobs, especially in positions that are in great demand among citizens in countries that suffer from unemployment among their nationals.
There is also a proposal to set a time limit on the length of stay of foreign workers in the GCC. This issue is visited every now and then.
The author is an economist and a researcher in GCC economies
