India pitches for greater mobility of skilled labour at G20

The freer movement of labour force will also help developed countries to meet the labour shortage and declining demand, says Jaitley

India today favoured greater mobility of skilled labour besides increased movement of goods and capital arguing that it would help the developed nations which are faced with the problem of ageing population.

"... Our efforts for goods movement and capital liberalisation should be complemented by skilled labour mobility. This will be of considerable help to countries facing demographic challenges due to ageing populations," Finance Minister Arun Jaitley said.

The Minister made these remarks during his intervention at the G20 Session on framework for strong, sustainable and balanced growth.

India has been seeking liberalised visa regime in the developed countries so ensure freer movement of skilled professionals with a view to boost growth of services sector which contributes about 60 per cent of the country's economic growth.

The freer movement of labour force, Jaitley said, will also help the developed countries to meet the labour shortage and declining demand.

He said that the Framework Working Group (FWG) of G20 had devoted significant amount of space to discussion on the "issue of declining potential output in major economies."

According to an Indian government report, while the developed world is faced with ageing population, India is a comparatively young nation as more than 54 per cent of the country's population is below the age of 25. Armed with demographic advantage, it can provide skilled workforce to fill the expected shortfall in the ageing developed world.

Jaitley along with Reserve Bank Governor Raghuram Rajan is here to participate in the two-day conference of G20 finance ministers and central bank governors.