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Indian work force in Germany: A success story with challenges

(bc) Starting from the controversial “children instead of indians” debate in 2000, initiated by then CDU politician Jürgen Rüttgers, the recruitment of Indian IT specialists has developed into a success story. Today, Indian workers in Germany are well integrated and overrepresented in highly qualified positions. Despite bureaucratic hurdles, the immigration of Indian professionals offers great potential for the German economy – especially in light of demographic challenges and the growing shortage of skilled workers.

From “children instead of indians” slogan to skilled labor recruitment

In 2000, a heated debate erupted in Germany that placed then Chancellor Gerhard Schröder at the center of criticism. At the CeBIT computer fair, Schröder proposed bringing 20,000 computer experts from India to Germany due to an acute shortage of skilled workers in the IT sector. While industry welcomed this suggestion, it faced political resistance. Jürgen Rüttgers, CDU’s top candidate for the state election in North Rhine-Westphalia, sparked a national discourse with his infamous slogan “children instead of indians.” This phrase reflected the reservations and fears prevailing at the time regarding the recruitment of foreign specialists. Side note: the founding of the internet portal theinder.net was partly a consequence of this green card debate.

Rüttgers argued that instead of recruiting IT specialists from India, better investment should be made in the education of German children. He warned against “irresponsible” immigration, which, given the failed integration of Muslim immigrants, would bring new challenges. His statements received not only support but also sharp criticism, even from within his own ranks. The slogan was also revived in the election campaign of the right-wing Republicans. In retrospect, the debate foreshadowed today’s discussions about skilled labor shortages and immigration.

Immigration of indian professionals: a success story

Despite the controversies at the time, the recruitment of Indian professionals has become a success story. Since the early 2000s, the number of Indian nationals in Germany has grown significantly. Between 2010 and 2022, the Indian community grew from 48,000 to over 210,000 people. As of December 2022, around 120,000 were employed subject to social insurance contributions. This immigration is largely shaped by employment and educational migration, with a significant number of Indian immigrants completing studies in Germany before entering the labor market.

Especially remarkable is the integration of Indian workers in the German labor market. More than half of Indians working in Germany hold highly qualified positions requiring a university degree or comparable qualification. This stands in stark contrast to the average share of all foreigners in Germany, of whom only 16.5 percent are employed in comparable positions. The share of Indian specialists is particularly high in STEM professions (mathematics, informatics, natural sciences, and technology).

This positive development is also reflected in incomes. The gross median wage of Indian full-time employees was 5,200 euros per month in December 2022, while the median wage for the overall population was 3,600 euros. However, this income difference can largely be explained by the higher qualification level of Indian employees.

Challenges in recruiting skilled workers

Despite successes, Germany and Indian professionals face significant challenges. Recognition of professional qualifications and visa processes are often lengthy and complicated. The number of applications for recognition of Indian professional qualifications has risen sharply – from 150 applications in 2015 to 1,695 in 2022 – yet waiting times in India remain long, considerably slowing immigration. Recognition of foreign degrees is especially important in healthcare, where it is mandatory to work in Germany. Despite structured vocational training in India, the placement of qualified professionals in Germany remains challenging and is hampered by bureaucratic hurdles.

The competition for qualified workers is global, and Germany competes directly with other countries, especially English-speaking ones that benefit from the widespread use of English and established Indian communities. Nevertheless, Germany offers increasingly attractive conditions for Indian professionals through targeted migration agreements, such as the 2022 German-Indian agreement, and reforms of the Skilled Immigration Act since 2020.

Indian professionals as a future perspective for the german labor market

Demographic developments in Germany clearly show that demand for skilled workers will continue to rise in the coming years. In contrast, India has a young and growing population of 1.4 billion, now the largest in the world. These demographic differences offer significant potential for increased skilled immigration from India to Germany.

A study by the Institute of the German Economy (IW) emphasizes India’s importance as a focus country for German skilled labor recruitment. Especially in IT, but also in craft and technical professions, there is great potential in Indian specialists that could be better exploited. Vocational training in India is largely organized by the Directorate of General Training (DGT), and the qualifications obtained there provide a good basis for recognition in Germany.

Nevertheless, recruiting skilled workers from India remains a demanding task, especially concerning bureaucratic processes and the adaptation of Indian professionals to the German labor market. However, the German economy has recognized that cooperation with India is crucial to addressing the skilled labor shortage in the future. This also includes creating attractive conditions for Indian professionals, including faster visa procedures and better recognition of qualifications.

Sustainable contribution to the german economy

Indian professionals have established themselves as an indispensable part of the German labor market. Their high qualifications, especially in technology-intensive sectors, significantly contribute to the competitiveness of the German economy. Given the demographic challenges Germany faces, the importance of Indian professionals will increase further in the coming years. The key will be how successfully Germany can promote immigration from India and shape the integration of these professionals.

With its young and dynamic population, India offers enormous potential that Germany must leverage in global competition. Not only economic but also cultural and social aspects will play a role in ensuring sustainable and successful skilled labor security. The story of “children instead of indians” shows how perspectives in Germany have changed – from skepticism to an open and future-oriented migration policy that recognizes India as a key partner for the German labor market.

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Picture: (c) University of the Fraser Valley

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