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Building pathways : addressing challenges in the Germany-India migration corridor
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1. Context Germany faces a severe and persistent shortage of skilled workers, with over 700,000 current vacancies and a projected shortage of nearly 7 million workers by 2035. Labour shortages have contributed to a decline in economic growth potential around from two per cent in the 1980s to 0.7 per cent in 2024(Yadav, 2024). It is estimated that Germany requires an annual net immigration of approximately 290,000 people by 2040 to maintain a stable workforce(Lommetz, 2025). India with the world's largest youth population(15-29 years) of 371.4 million(GOI, 2022) has emerged as a strategic partner to fill this gap. As of 2024 December, 277,455 Indians were residing in Germany(Destatis, 2024). Within this group 137,000 Indians were employed in jobs subject to social security contributions, including 44,000 women(BMAS, 2024). India and Germany share a strategic partnership from 2000. To expand mobility, India and Germany signed a series of agreements: The Migration and Mobility Partnership Agreement(MMPA)(2022) promoting fair and regular movement; the MoU on Skill Development and Vocational Education and Training(2024) focusing on workforce building and women's participation. In 2024, Germany launched the India Skilled Labour Strategy to accelerate recruitment from India. Despite a favourable demographic alignment and strong governmental efforts, migration outcomes have fallen short of expectations on both sides. Gaining a clear understanding of the challenges faced by employers and migrants alike is crucial to accelerating progress and securing mutually beneficial results. This paper, commissioned by FES India, seeks to provide a comprehensive understanding of the challenges and put forward recommendations to address them. Building Pathways: Addressing Challenges in the Germany–India Migration Corridor 4