What Germany’s Work Visa Increase Means for Indians

To address ongoing labour shortages, Germany is making significant changes to its immigration policies in 2024. The government aims to attract skilled workers by increasing professional visa quotas and implementing a series of new measures.

Let’s explore the implications of the move and how it will expand the ever-growing relations between the two nations.

What’s Happening?

Germany plans to issue 10% more professional visas in 2024 to tackle labour shortages, the government announced on November 17. Under the new policy, 2,00,000 professional visas will be granted, following a point-based system similar to Canada’s. Other changes include a 20% increase in student visas for non-EU nationals, a doubling of apprenticeship visas, and a nearly 50% rise in the recognition of foreign qualifications.

Earlier, on October 25, 2024, Germany announced the decision to increase the number of skilled worker visas available to Indian professionals from 20,000 to 90,000 per year. This marks a gigantic 4.5 times rise in opportunities for skilled Indian workers.

This unprecedented expansion aims to address Germany’s chronic shortage of qualified professionals in the fields of IT, engineering, healthcare and other high-skilled industries.

What the Visa Increase Means for Indian Professionals

In February 2024, the number of Indian skilled professionals working in Germany stood at 1,37,000, a significant rise from 23,000 in 2015. With more visa slots, chances of securing a German work visa have significantly improved, particularly for those with in-demand skills. This increase also signifies Germany’s recognition of India as a prime source of skilled labour.

Tackling Germany’s Labour Shortage

Germany is facing a massive demographic shift with an ageing population leading to chronic labour shortage in critical sectors. Germany is looking to fill the void of domestic professionals by increasing limits for skilled workers from India.

Germany is facing an economic slowdown, and the rise in the number of professionals will not only boost falling demand in the economy but also avoid disruption in companies due to labour shortage. The massive influx of Indian professionals will benefit sectors like IT, automobile, engineering and healthcare which are crucial for maintaining Germany’s position as a leading global economy.

India-Germany Economic Ties

Germany is one of India’s biggest trading partners, with the bilateral trade valued at $26.109 billion in FY24. This figure is slightly lower than that of FY23 figures when the total value of bilateral trade was $26.736 billion.

In FY24, exports to Germany stood at $9.839 billion, and the total value of imports from Germany was $16.270 billion.

The decision to raise visa issuance for Indian professionals will pave the way for further consolidation of India-Germany relations and lay the ground for future collaboration in education and research.

What’s Next?

PM Modi, at an event addressing German business leaders, emphasised the importance of Germany as a trusted ally and major partner. He stressed that both India and Germany are major economic powerhouses, and both are cooperating for global good on various issues. PM Modi, along with Olaf Scholz, released the Focus on India, which outlines key strategies and ways to deepen strategic partnership between the two countries.

That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!

This article is for informational purposes only. This is not investment advice.

Disclaimer: Teji Mandi Disclaimer