India–Russia workforce partnership: human capital to meet labour demand
Lydia Kulik
Head of India Studies at SKOLKOVO India Lab, Moscow School of Management SKOLKOVO
In this column Dr Lydia Kulik, Head of India Studies at SKOLKOVO India Lab, Moscow School of Management SKOLKOVO, explores how a symbiotic relationship between India, with its fast-growing talent pool and Russia, with its increasing structural need for greater human resources is shaping a long-term workforce partnership. With Russia forecast to need an additional 12.2 million workers by 2032, the article examines why India is emerging as a key partner to cover this shortfall — and how recent policy shifts are turning this potential into a structured, compliant and mutually beneficial reality for businesses in both countries.
At a glance
Two nations, one shared conviction
For both India and Russia, human capital is the single greatest national asset. However, the two countries have had very different journeys to arriving at this conviction and it is precisely this complementarity that makes this partnership so compelling.
Russia’s educational traditions are rooted in depth and breadth. Russian children are often trained simultaneously in the arts, sciences and sports — a legacy that has produced generations of highly versatile professionals. Meanwhile, India’s educational priorities are increasingly shaped by its global ambitions. In the words of India’s Foreign Minister S. Jaishankar, India is «the only viable reservoir that prepares skills before they flow into the world economy.» India’s overall employability has risen to 56.35% in 2026, up from 46.2% in 2022, and today the country commands 16% of the global AI talent pool.
While Russia is prioritising attracting highly-skilled talent from abroad, India is actively preparing its workforce to meet global demand before it even arises. This is not a competition—it is, structurally, the beginning of a highly symbiotic relationship.
Russia’s labour gap: an opportunity for India
Russia’s labour shortage is not a recent phenomenon. It is the cumulative result of two defining moments in the country’s history—the devastation wrought on the country by the Second World War and the economic turbulence of the 1990s. Russia’s population of around 146 million people is ageing and the national economy is feeling the pressure acutely. In July 2025, Russia’s Labour Minister Anton Kotyakov told President Putin directly: «By 2030 we need to bring 10.9 million people into the economy.» The Ministry of Labour’s revised seven-year forecast, published in December 2025, puts the figure at 12.2 million workers needed by 2032.
The most in-demand roles in the near term will be for welders, machinists, carpenters, and seamsters — skilled blue-collar professions that Russia cannot fill quickly enough organically. Russia is responding to the challenge, with national missions such as Personnel and Professionality, which aim to retrain over 100,000 people annually and to build ties directly between employers and training institutions. However, domestic measures alone will not close the gap. Labour migration—and from India in particular— is a strategic part of the solution.
India’s vocational training sector is expanding at exactly the right moment. As India scales up its manufacturing sector and reorients towards export markets, the country is generating a growing group of skilled workers in precisely the trades that are needed in Russia. This alignment is not coincidental—rather it reflects the natural complementarity of two major economies at different but compatible stages of development.
A new legal architecture for mobility
For years, reality lagged far behind the potential for cooperation between India and Russia on workforce talent. However, this began to change decisively in December 2025, when President Putin’s State Visit to India resulted in the signing of two landmark bilateral documents, namely the Agreement on Temporary Labour Activity of Citizens of the Two Countries and the Agreement on Cooperation in Combating Irregular Migration. These documents are the first of their kind between the two countries, which establishes the foundational legal framework that employers, workers and governments have long needed.
This new framework is significant in practical terms. Under Russia’s migration system, employing foreign workers requires planning in advance. Quotas for such employees must be applied for annually, documentation must be filed correctly and the employer takes on a legal duty of care towards the employee. Companies that commit to this process find it works well—but many have long been reluctant to engage with foreign workers due to the administrative complexity. The new bilateral agreements, combined with Russia’s updated State Migration Policy Concept for 2026–2030, have introduced digital identification mechanisms, strengthening enforcement against illegal migration and increasing employer accountability.
Nearly 10,000 Indian workers registered at an employment centre in Moscow in December 2025 alone—a signal that this talent pipeline is already gaining momentum. India has also opened new Consulates General in Yekaterinburg and Kazan to support the mobility and welfare of Indian workers in Russia, adding to the three existing missions in St. Petersburg, Moscow and Vladivostok.
The reality of working in Russia
For Indian professionals and workers considering Russia, the overall picture is resoundingly positive—when processes are followed correctly. Russian labour legislation is strict and comprehensive—workers employed officially are entitled to the same standards as Russian employees, including in terms of housing, meals, protective clothing and safety equipment. Employers are required to provide a medical check-up upon arrival and basic Russian language training— which are important not just for daily life, but for safety in the workplace.
For highly skilled professionals—like engineers, IT specialists, scientists and entrepreneurs—Presidential Decrees No. 702 and No. 883 open dedicated pathways for working and integrating in Russia, providing access to competitive salaries, world-class infrastructure and opportunities for long-term professional achievements. Russia’s academic and research institutions remain among the most rigorous in the world. For those who come to Russia to study and then remain to work, the professional environment is genuinely stimulating.
One practical consideration that Sberbank India has addressed is the question of remittances. Indian workers in Russia can use Sber’s solutions for safe, reliable transfer of their earnings back home — removing the need to handle large amounts of cash and ensuring that families back in India can receive funds in a timely and secure manner.
The road ahead: building through the decades
It is vital that Russian businesses understand the time horizon for this partnership. India is set to be blessed with a large, young and productive workforce for around 30 years. This is not a short-term staffing fix; it is a generational opportunity that rewards long-term thinking.
Several steps will accelerate progress. Standardising qualifications and streamlining procedures across Russia’s regions will make the process more accessible to a broader range of employers. Opening more Russian training and certification centres in India will allow workers to arrive job-ready. Russian universities should develop programmes designed specifically for Indian students, oriented towards joint projects and the Russian market—rather than merely as a stepping stone to a career in the West. Indian companies can also play their part, by partnering with Russian companies and educational institutions to design tailor-made courses rooted in real industry needs.
Cross-border talent mobility could add USD 500 billion to the global economy by 2030, with India playing a central role in bridging skills gaps worldwide. Russia has every reason to be a significant destination for Indian professionals—who themselves will have every reason to look east as well as west when mapping their global ambitions.
The demand is clear. The talent exists. The legal foundations have been laid. What remains is the will—on both sides—to build something enduring.
Sberbank India provides financial solutions for businesses operating between Russia and India, including cross-border payments, trade finance, and support for workforce mobility. To learn more, contact our team.