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Horizons April - India

GES Newsflash India – Indian Immigration Quota System for Foreign Workers in India

Horizons

 

Background

Introduction of quota system to restrict foreign workers.

Key findings

The Indian Government has announced a quota system to restrict the number of foreign workers in India based companies. The aim of the new system is to encourage employers to train and invest in resident workers. It appears that the quota will impact all companies, irrespective of size.

Employment visas will only be issued for 1% of the total persons employed on projects or contracts by a company located in India, subject-to-subject to restrictions based on industry. Limits for the power and steel sector will only be applicable until June 2010.

Employment visa applications within the maximum quota may be cleared by the Indian Missions abroad without being referred to the Ministry of Labour and Employment, subject to certain conditions being met.

If more foreign nationals are required by an Indian employer for a particularly large project, clearance by the Ministry of Labour and Employment will be required.

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