International Migration Outlook 2025: India Becomes the Largest Source of OECD Migrants
SDG 8: Decent Work and Economic Growth | SDG 10: Reduced Inequalities | SDG 17: Partnerships for the Goals
Institutions: Ministry of External Affairs (MEA) | Ministry of Skill Development and Entrepreneurship (MSDE) | NITI Aayog
The OECD’s International Migration Outlook 2025 presents a clear and impactful narrative about the state of global migration system and its major economic costs: the underutilization and under-valuation of immigrant talent.
The Migration Landscape and Inefficiency
The report establishes that permanent migration flows to developed economies (OECD countries) remain historically high, despite a minor recent decline, standing at 15% above 2019 levels. India is at the center of this trend, being identified as the leading country of origin for migration to these nations. This flow includes a rapid increase in skilled labor, highlighted by a 75% in Health and Care visas granted to Indian nationals. However, this mobility is structurally complex, as the largest share of migrants (40%) arrives through family reunification, a channel that often lacks structured job integration support.
The Cost of Underutilization
The report argues that the system is failing to utilize this talent efficiently, creating a drag on economic growth:
Earnings Gap: Immigrants face large labor earnings gaps compared to native-born workers, directly resulting in the under-valuation of human capital.
Maternal Employment Penalty: This inefficiency is most acute for immigrant women, who face a significant employment penalty, evidenced by a 20% gap in employment rates compared to native-born mothers. This results in a massive waste of human capital and potential productivity.
Systemic Failure: The report concludes that the global failure to efficiently utilize and integrate this growing pool of skilled migrant talent serves as a brake on potential economic growth and resilience.
The Roadmap for Integration
The OECD bases its call for reform on the rigorous, standardized collection of international migration data and diagnosis of institutional failures across member countries. The policy recommendations focus on removing these systemic obstacles:
Policy Intervention (Skills): The key recommendation is to streamline the assessment and recognition of foreign qualifications. This action is the most direct way to eliminate the earnings gap and ensure skilled workers immediately contribute their full potential.
Targeted Support: Policy focus must shift to integrating immigrant families, especially women, by optimizing support for language acquisition, job search, and skills development.
Governance: The goal is to establish a human-centred perspective on mobility that ensures migrants’ well-being while strengthening the national capacity to manage and benefit from these flows. This framework is necessary to address the “double disadvantage” faced by migrant women.
This report is crucial for the MEA and MSDE. As the top country of origin, India must leverage its leadership in the Colombo Process to maximize the benefits of “circular mobility” by strengthening the recognition of Indian qualifications and skills abroad. This ensures that the increasing flow of highly skilled Indian healthcare and tech professionals leads to long-term national gains rather than just “brain drain.”
What is Colombo Process? → The Colombo Process is non-binding Regional Consultative Process launched in 2003, bringing together 12 Asian labour-sending countries to coordinate on overseas employment governance. It focuses on migrant welfare, ethical recruitment, skills recognition, and maximising development gains from labour mobility (including remittances). India is a founding member and currently chairs the forum (2024–26).
Follow the full report here: International Migration Outlook 2025