Need to pursue global labour mobility issue: CEA

Expressing concern over least mobility of labour across the world, Chief Economic Advisor (CEA) Arvind Subramanian today said there is need to pursue the issue further.
"One area where international integration has advanced least is in labour mobility, there is need to pursue this further," Subramanian said while delivering lecture at the launch of Oxford Handbook.
India at the G20 meet in Turkey this month had also 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 had said during his intervention at the G20 Session in Ankara 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.
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.

Talking about reforms in India, Subramanian said that compare to China and Japan, India has used less external anchor to further India's domestic reform.

"To what extent India has used external anchors to further India's domestic gains ... Why we have done less than others. China and Japan has used external engagement to further domestic reform," he said.
The CEA further noted that India's International economic engagement has been reactive.
Subramanian also said that the central government should consider allowing states to engage with other countries and international institutions.