Germany boosts skilled worker visas for Indians to 90,000 annually amid labour shortage

In order to tackle its waning working age population, Germany on Friday, October 25, announced that it would now issue 90,000 visas annually for skilled Indians. The number is a 4.5-time jump from the previous quota of 20,000. The announcement was made during the visit of German chancellor Olaf Scholz to India.

Indian Prime Minister Narendra Modi hailed the move as one that would bolster Germany’s economic growth. The Indian leader also invited businesses from Germany to invest in the Asian country. In his pitch, Modi said India was the best place for investment now, owing to its current growth.

“Two of the world’s leading economies…Together we can become a force for global good, and the Focus on India document provides a blueprint for this. In this, Germany’s holistic approach and commitment to pursuing the strategic partnership are clearly evident,” Modi said at the 18th Asia-Pacific Conference of German Businesses in New Delhi, as quoted by reports.

Scholz, who is on a three-day visit to India, also attended the event.

The German Chancellor said his country was pushing for an early conclusion to negotiations for a free trade agreement (FTA) between the European Union and India and expressed a hope that a deal would be reached sooner if both parties — the EU and India — worked on this together.

Scholz said, “We must avoid one-sided dependencies, particularly in areas of strategic importance – critical raw materials and certain technologies, for instance,” while highlighting the need for further diversification of the nation’s trade.

As per reports, Friday’s agreement between India and Germany is the former’s first under the G20 ‘Skills-based migration pathways’ framework, which was accepted during the meet in New Delhi in 2023. It would aid the Indian workforce to move into non-traditional sectors.

According to The German Economic Institute, a major economic think tank, 570,000 jobs remained unfilled in Germany in 2023.