Bridging the Gap: Indian Labour Reshapes India-Russia Ties

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For almost a decade, leading Indian experts had been flagging labour migration as an area of opportunity for India-Russia relations, particularly with regard to cooperation in the Russian Far East, a region that has experienced depopulation and manpower shortages. The main argument was that Indian professionals could fill the gap and allay Russian concerns over the rise of Chinese migration to the region. This idea, however, was not given the necessary level of attention in Moscow.

Over the last two years, given Russia’s dire workforce shortage, Indian workers have emerged as a key factor in shaping new trends in India-Russia people-to-people ties and broader economic relations between the two countries.

The problem and the response 

By the end of 2024, the shortage of skilled workers in Russia was estimated to be 1.5 million people, primarily in sectors such as construction, transport, housing, and utility services. The situation is expected to worsen further by 2030, with demand for labour set to rise to 3.1 million people. Central Bank Governor Elvira Nabiullina described the shortfall in manpower as “the main problem for the Russian economy.”

The severe labour shortage in Russia is the outcome of several factors. Firstly, it reflects the general trend of demographic decline stemming from the low birth rate in the 1990s and early 2000s. These demographic issues were further exacerbated by the high mortality rates during the COVID-19 pandemic, the departure of thousands of men for the war in Ukraine during the 2022 “partial mobilisation,” and the recruitment of volunteers for military service.

The greatest impact of these decisions has been felt by labourers from Uzbekistan and Tajikistan, who make up the largest group of labour migrants in Russia.

Secondly, there has been an outflow of migrants from Central Asia. This was initially provoked by the increasing volatility of the Russian rouble in 2022-2023, which led to a depreciation in their incomes, and consequently, a decline in the attractiveness of the Russian market. Another factor was the tightening of immigration legislation following the Crocus City Hall terrorist attack in March 2024. As a result, the authorities in many Russian regions have introduced restrictions on granting patents – work permits required for non-visa nationals from countries outside the Eurasian Economic Union (EAEU). The stated intention of these restrictions is “to ensure the employment rights of Russian citizens, reduce informal employment and social tension, and safeguard national security.” The greatest impact of these decisions has been felt by labourers from Uzbekistan and Tajikistan, who make up the largest group of labour migrants in Russia. It is estimated that 500,000 individuals from Uzbekistan and 200,000 from Tajikistan—out of a total of 1.8 million Uzbek and 1.2 million Tajik citizens living in Russia—are illegal migrants.

The rise of Indian labour in Russia 

Following the restrictions on patent issuance, Russian enterprises were forced to hire workers from overseas, including countries not traditionally considered sources of labour supply. With the Russian government increasing the quota for workers from countries requiring visas from 156,600 in 2024 to 234,900 in 2025, South Asian countries — specifically India, Bangladesh, Nepal and Sri Lanka — have emerged as an important source of labour for various sectors of the Russian economy. Bangladeshi workers, for instance, are employed in shipbuilding, construction, hospitality and transport, whereas labourers from Sri Lanka primarily work in textile and food production, as well as in the agro-industrial complex.

With the Russian government increasing the quota for workers from countries requiring visas from 156,600 in 2024 to 234,900 in 2025, South Asian countries — specifically India, Bangladesh, Nepal and Sri Lanka — have emerged as an important source of labour for various sectors of the Russian economy.

The new draft legislation currently under consideration in the Russian parliament provides further evidence of the increased demand for labour from the so-called “far abroad”. The draft law aims to ease the requirements for workers from non-visa-exempt countries, specifically China, India, Türkiye, and Turkmenistan. It proposes granting “foreign citizens working under the government’s quota” more time to “confirm their proficiency in the Russian language and demonstrate their knowledge of Russian history and understanding of the fundamentals of Russian legislation.” The measure is expected to “reduce the cost of attracting the necessary human resources from foreign countries” and to help the Russian economy “meet its needs more effectively, including the implementation of major investment projects.” 

Therefore, for Russian firms, Indian manpower has become an important source of bridging the workforce shortage. As of 2024, Indian citizens had obtained over 36,000 work permits, making them the second largest group among workers from non-visa-exempt countries (see Table 1).

Table 1. Work Permits Issued to Foreign Nationals from Non-Visa-Exempt Countries (2021–2024)

Top Five Countries by Volume and Selected South Asian States 

Source: Compiled by the author based on data from the Ministry of Digital Development, Communications and Mass Media, Government of Russia

Visa statistics indicate a sharp rise in applications for Russia’s employment visa, going from 2,876 Indian applications in 2021 to 22,631 in 2024 (see Figure 1). It is expected that over 40,000 Indian nationals will arrive in Russia for work in 2025. According to Russian Ministry of Labour quotas, Indians are expected to fill vacancies in three main regions: the Moscow region requires nearly 19,000 Indian labourers, primarily tailors, maintenance workers, and trowelmen; the Amur region is looking for over 12,000 construction workers; and the Leningrad region will hire about 7,500 people from India, mainly as garment workers and installation personnel. Hundreds of Indians will also potentially fill quotas in other Russian regions, predominantly in the construction, textiles, warehousing, delivery, agriculture, and food industries. Russian employers now perceive Indians as attractive labour due to their combination of experience and youth, as well as their low wage expectations. For Indians, Russia provides an opportunity to earn higher wages than they would in the same sectors in India.

Figure 1. Number of Russian Visas Obtained by Indian Citizens (2021-2024)

Classified by Main Categories

Source: Compiled by the author based on data from the Consular Department, Russian Ministry of Foreign Affairs

The new trends in people-to-people ties 

The rising number of Indian workers suggests a potential resurgence in grassroots connections between India and Russia. Employment is not the only area of engagement. The number of Indian students at Russian universities has been steadily increasing. Visa statistics show an upward trend in applications for Russian student visas, surpassing the fluctuations of the uncertain 2022-23 period to reach nearly 19,000 in 2024 (see Figure 1). The total number of Indian students has steadily increased since 2021, with over 30,000 currently enrolled in Russian universities, primarily in medicine and veterinary medicine (see Table 2).

Table 2. Number of Indian Students Pursuing Higher Education in Russia (2022-2025) 

Source: Ministry of Education, Government of India

Beginning August 2023, Moscow simplified the process of entering Russia for tourism or business purposes via the e-visa system (see Table 3), enabling visitors to stay in the country for up to 16 days. Despite this measure, tourist arrivals are still not at par with pre-pandemic levels. There has also been no significant surge of interest from Indian businesspeople, with only a marginal rise in the number arriving in Russia (see Figure 2). India and Russia have also been in talks to introduce a visa-free regime for tourist groups of more than five people. The idea was initiated by Moscow in August 2023 and has since been discussed at multiple events, such as the bilateral consular dialogue and business summits, though it is yet to be implemented.

Table 3. Number of Russian Electronic Visas Obtained by Indian Citizens (2023-May 2025) 

Source: Consular Department, Russian Ministry of Foreign Affairs 

Figure 2. Number of Indian Citizens Entering Russian Territory (2019-2024)

By Main Visa Categories

Source: Compiled by the author based on data from the Ministry of Digital Development, Communications and Mass Media, Government of Russia

The growing influx of Indian labour migrants and students in Russia is likely to lead to a significant expansion of the Indian diaspora, whose influence on the India-Russia relationship is poised to intensify in the years ahead. The increased movement of people presents further opportunities to enhance the economic relationship between India and Russia. However, to unlock this potential, the two countries will need to improve the prevailing financial infrastructure, as sanctions prevent the seamless flow of remittances and the use of Indian banking cards in Russia, and vice versa. Additionally, to further encourage visits to Russia, Moscow must ensure its immigration policy is sufficiently flexible to create favourable conditions for Indian citizens. This includes ensuring access to comfortable accommodation and Indian food.

The growing influx of Indian labour migrants and students in Russia is likely to lead to a significant expansion of the Indian diaspora, whose influence on the India-Russia relationship is poised to intensify in the years ahead.

The Indian diaspora has the potential to emerge as a bridge between the two countries, fostering long-term connections across various fields. Moscow and New Delhi must therefore take steps to further strengthen these people-to-people ties.

Aleksei Zakharov is a Fellow with the Strategic Studies Programme at the Observer Research Foundation.

• International Affairs
• India
• Russia and Eurasia
• india russia economic relations
• india russia economic relations
• india russia relations
• Indian labour migrants in Russia
• Indian labour migrants in Russia
• indians in russia
• indians in russia
• labour shortage in Russia
• labour shortage in Russia
• russia immigration policy
• russia immigration policy

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