India’s demographic edge rising

September 16, 2025

A new report projects that global labour shortages will reach as high as 250 million workers by 2047, creating a historic opportunity for India’s young workforce to emerge as the world’s next major talent hub.

The study, conducted by the Global Access to Talent from India (GATI) Foundation in partnership with Boston Consulting Group (BCG), said falling birth rates and shrinking workforces across developed nations are generating severe shortages, leaving millions of roles unfilled. Just 20 countries, including the US, UK, Germany, Japan and South Korea, are expected to account for 90 per cent of the shortfall.

According to the report, half of the gap will be in blue-collar roles in transport, hospitality and industry, while 20 per cent will be in service sectors such as nursing and teaching. The remaining 30 per cent will affect white-collar jobs. These unfilled positions already cost the global economy more than \$1 trillion a year in lost productivity.

India, however, holds a demographic advantage. With a median age of under 30, the country has nearly 600 million people between 18 and 40 years old. Each year, 10 to 12 million individuals enter the eligible workforce, a trend expected to continue for decades.

“By 2047, advanced economies will face a shortfall of 200-250 million workers. India has a unique opportunity to step into this gap, building on its proven strengths in ICT and professional services. The next chapter must be about scaling new frontiers such as healthcare, green skills and manufacturing, where demand is surging worldwide,” said Rajiv Gupta, Managing Director and Senior Partner at BCG.

Arnab Bhattacharya, CEO of the GATI Foundation, noted that against the backdrop of 50 million global opportunities expected by 2030, India could fill about 10 million. He stressed that India’s demographic profile sets it apart from OECD nations, where the median age is already above 40.

Currently, India sends more than 700,000 migrant workers overseas every year. Remittances from Indian workers abroad amount to about \$130 billion annually. Yet India’s share of global migrants is only 6 per cent, far below its 18 per cent share of the world’s population.

The report suggests that if India capitalises on this opportunity, the number of migrant workers could rise to 1 to 1.5 million per year by 2030, while remittances could increase to \$300 billion annually.

For this, Gupta said, bold reforms are required to align qualifications, accelerate worker mobility and embed global standards. These steps, he argued, could allow India to shift from being a contributor to the global workforce to becoming its backbone, replicating the success of its IT sector in fields such as healthcare, manufacturing and domestic work.