Summary
India’s government is pushing a global labour export strategy, having signed 28 migration and mobility partnership agreements with 26 countries. Remittances reached US$129 billion in 2024, offsetting nearly half of the US$287 billion merchandise trade deficit and accounting for about 3 percent of GDP. However, the influx of Indian immigrants has triggered a backlash in the West: Canada restricted international student visas in 2024, the US imposed a US$100,000 fee on H-1B visas in September 2025, and Australia cut Indian visa approval rates by nearly half.
In 2025, US Customs intercepted 23,830 illegal Indian migrants, with about 725,000 estimated to be in the country illegally. The overseas expansion of Hindu nationalism is exacerbating tensions, with the RSS operating about 3,289 branches across 156 countries. Experts point out that India’s labour diplomacy faces a tension between exporting labour and exporting ideology, and the dividend window is narrowing.
Commentary
India’s labour diplomacy is confronting tightening policies in the West, a trend with dual implications for New Zealand SMEs. On one hand, visa cuts in Canada and Australia may redirect some skilled Indian workers to New Zealand, supplementing labour in IT, construction, and healthcare. On the other hand, populist pressure could push New Zealand to follow suit, tightening immigration screening and increasing compliance costs for firms hiring overseas staff.
Indian remittances currently account for about 3 percent of GDP, and its overseas migration networks are becoming increasingly organised. Attention should be paid to the expansion of groups like HSS locally, which could form closed communities and affect the domestic labour market structure. SMEs should plan for diverse talent sources early to avoid over-reliance on a single market.
Keywords: Indian immigration, anti-immigration wave, remittances, labour diplomacy, Hindu nationalism, H-1B visa, populism, illegal immigration, Modi government
Source: Global Times
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