Russia is increasingly looking to India to address its labor shortages, driven by demographic decline and war-related disruptions, following a significant labor mobility agreement.
As Russia grapples with a deepening labor shortage exacerbated by demographic decline, war-related disruptions, and tightening migration policies, the country is increasingly turning to India as a vital source of foreign workers. This shift marks a significant change in Russia’s labor strategy and its bilateral relations with New Delhi.
The pivot to Indian labor follows a labor mobility agreement signed in December 2025 between Indian Prime Minister Narendra Modi and Russian President Vladimir Putin. This agreement formalized large-scale Indian migration to Russia, establishing a quota of over 70,000 Indian workers for the year 2026.
Russian officials and Indian diplomats assert that the agreement aims to address workforce shortages in Russia while simultaneously providing employment opportunities for India’s surplus labor. An Indian diplomat, speaking anonymously due to the sensitivity of the bilateral relationship, remarked, “Russia needs workers, India needs to export unemployment.”
By the end of 2025, between 70,000 and 80,000 Indian citizens were already working in Russia, according to Vinay Kumar, India’s Ambassador to Russia. Boris Titov, the Russian Presidential Special Representative, confirmed that India is expected to play an increasingly significant role in Russia’s labor ecosystem as the country seeks to stabilize its economy and maintain productivity.
Research indicates a notable increase in Indian arrivals in Russia, with border data showing:
32,000 Indian citizens entered Russia in the first quarter of 2025,
36,000 in the second quarter,
and 63,000 in the third quarter.
This surge underscores the accelerating labor migration flows driven by economic incentives and Russia’s urgent demand for manpower.
Indian workers are being recruited through a combination of official government channels and private recruitment agencies, although concerns persist regarding oversight and worker protections. For low-skilled labor, monthly wages range from €475 to €950 ($555 to $1,111), which is significantly higher than what many workers could earn in India.
A report by the Russian news outlet Fontanka highlighted that Indian workers cleaning streets in St. Petersburg earn around 100,000 rubles per month (€1,125/$1,316). These workers also receive benefits such as free accommodation, free meals, and Russian language courses. St. Petersburg authorities estimate that around 3,000 Indian job-seekers have already arrived in the city.
Historically, Indian migration to Russia occurred informally and without structured legal protections, often leaving workers vulnerable to fraud, exploitation, and unsafe working conditions. The new bilateral labor agreement seeks to formalize migration channels, regulate recruitment agencies, and ensure better legal safeguards. An Indian diplomat noted, “A formal agreement was necessary to legalize Indian migration that had been happening informally and chaotically.” However, officials acknowledge that stronger monitoring mechanisms are still needed to prevent abuse.
One of the most pressing concerns related to past informal migration is the recruitment of Indian citizens into the Russian military under false pretenses. Since Russia’s full-scale invasion of Ukraine in February 2022, official figures indicate that 126 Indians signed contracts with the Russian army, with at least 12 reported killed and 96 having since returned to India. Prime Minister Modi raised this issue during his 2024 visit to Moscow, urging Russian authorities to facilitate repatriation and prevent further recruitment of Indians into military roles. Indian officials have reiterated that protecting their citizens abroad remains a priority.
Experts warn that language barriers and cultural differences could significantly hinder Indian workers’ integration into Russian society. Igor Lipsits, a Russian economist, stated, “You bring people into the country with whom you cannot communicate. This means they can only be employed for the simplest jobs such as hauling, cleaning, and manual labor.” Since most Indian migrants do not speak Russian, and many Russians do not speak English, communication remains a major obstacle, particularly in rural areas. Cultural factors may also limit integration, as noted by Andrei Yakovlev, another Russian economist, who pointed out that the focus on Indian migrants may be partly to minimize Muslim migration, assuming most Indian migrants will be Hindu.
While this initiative represents a significant policy shift, experts remain skeptical about whether Indian migration alone can resolve Russia’s workforce challenges. Lipsits argued, “It’s not street cleaners and unskilled workers that Russia lacks — it’s skilled professionals.” Current estimates suggest that Russia faces a labor deficit of 2.2 million workers in 2024, according to the Federal State Statistics Service, and up to 4.8 million workers in 2023, as per the Russian Academy of Sciences. Shortages affect various sectors, including industry, construction, logistics, healthcare, trade, and IT. Experts caution that importing low-skilled labor will not address gaps in technical and professional fields.
Russia’s shift toward India comes amid tightening immigration policies for Central Asian migrants, following the March 2024 Crocus City Hall terror attack in Moscow. Authorities have since increased restrictions on Central Asian immigration and hardened public rhetoric against migrant groups, while also facing rising wage demands from Central Asian workers. Lipsits explained, “Central Asian migrants are being poached by labor markets in the UK and Southern Europe, pushing wages higher and reducing Russia’s appeal.” In contrast, India offers a large labor pool, competitive wage expectations, and a strategic political alignment with Moscow.
Russia’s interest in Indian workers may also be linked to currency and trade dynamics. The trade turnover between India and Russia stands at approximately $70 billion, but Russia imports only about $5 billion worth of Indian goods, leading to large rupee reserves accumulating in Russia. Rajan Kumar, a Russia expert at Jawaharlal Nehru University, suggested that Russia may pay migrant workers in Indian rupees earned through oil trade, which could help utilize trapped rupee reserves while strengthening financial ties with India.
Beyond migration and war, experts contend that Russia’s workforce challenges stem from long-term population decline. Lipsits noted, “War, emigration, and mobilization worsen an already deep demographic crisis.” Russia’s shrinking population, compounded by military mobilization, skilled emigration, and economic slowdown, has created structural labor shortages that are not easily reversible. Yakovlev emphasized that Indian recruitment reflects a broader demographic emergency, rather than merely a wartime stopgap.
Indian policy analysts caution that Russia’s demand for workers may be unstable and influenced by war-related economic fluctuations. Lekha Chakraborty, a professor at the National Institute of Public Finance and Policy, warned, “Post-conflict normalization — or escalation — could compress wages, trigger layoffs, and strand migrants amid repatriation hurdles.” She stressed the need for stronger worker protection frameworks, clear repatriation protocols, and monitoring of recruitment agencies.
In conclusion, Russia’s outreach to India signifies a historic expansion of labor cooperation, reflecting shared economic interests, geopolitical pragmatism, and workforce necessity. However, experts caution that this initiative remains a high-risk experiment, shaped by Russia’s war-driven economy, long-term demographic decline, worker safety concerns, language and cultural integration barriers, and uncertain post-war economic stability. Whether this partnership evolves into a sustainable labor corridor or becomes a temporary geopolitical workaround will depend on policy enforcement, worker protections, and economic conditions on both sides, according to GlobalNetNews.