MOSCOW: A group of weary-looking Indian men carrying sports bags queued at passport control at a busy Moscow airport one recent evening after flying over 2,700 miles — and via Uzbekistan — to get work.
“I have a contract for one year. In the rubbish disposal business. The money is good,” said Ajit, one of the men, speaking in English.
Faced with what the authorities say is an immediate shortage of at least 2.3 million workers, a shortfall exacerbated by the strain of Russia’s war in Ukraine and one that Russia’s traditional source of foreign labor — Central Asians — is not able to fill, Moscow is turning to a new supplier: India.
Indian influx helps Russia make up labor shortfall
In 2021, a year before Russia sent its troops into Ukraine, some 5,000 work permits were approved for Indian nationals. Last year, almost 72,000 permits were okayed for Indians — nearly a third of the total annual quota for migrant workers on visas.
“Currently, expatriate employees from India are the most popular,” said Alexei Filipenkov, director of a company that brings in Indian workers.
He said workers from ex-Soviet Central Asia, who do not need visas, had stopped coming in sufficient numbers. Official figures show they still made up the majority of some 2.3 million legal foreign workers not requiring a visa last year, however.
But a weaker ruble, tougher migration laws, and increasingly sharp anti-immigrant rhetoric from Russian politicians have eroded their numbers and encouraged Moscow to boost visa quotas for workers from elsewhere.
The choice of India for unskilled labor reflects strong defense and economic ties between Moscow and New Delhi.
India has been buying discounted Russian oil that Moscow — due to Western sanctions — cannot easily sell elsewhere, although that may now be in question.
President Vladimir Putin and Indian Prime Minister Narendra Modi signed a deal in December to make it easier for Indians to work in Russia. Denis Manturov, Russia’s first deputy prime minister, said at the time that Russia could accept an “unlimited number” of Indian workers.
At least 800,000 people were needed in manufacturing, and another 1.5 million in the service and construction sectors, he said.
Indians working in Russian factories and farms
Brera Intex, a Moscow textiles company, has hired around 10 workers from South Asia, including Indians, to make curtains and bed linen.
Sat at a sewing machine, 23-year-old Gaurav from India said he had been working in Russia for three months.
“I was told to come (over) to this side, that the work and money are good,” he said. “Russian life is very good.”
Married with two children, he said he spoke to his family back in India by phone every day and told them he missed them.
Olga Lugovskaya, the company’s owner, said the workers — with the help of samples and supervision — had picked up the work in time and were highly motivated.
“Some of the guys who came in didn’t even know how to switch on a sewing machine,” she said. “(But) after two or three months, you could already trust them to sew a proper finished item.”
Outside Moscow, the Sergiyevsky farm relies on Indian workers too, using them to process and pack vegetables for an average salary of about 50,000 rubles ($660) per month, a salary for which the farm says locals will not work.
“I have been working here, at Sergiyevsky, for one year,” said Sahil, 23, who said he was from India’s Punjab region.
“In India there is little money, but here there is a lot of money. The work is here.”
US pressure on India to halt its purchases of Russian oil — something President Donald Trump has linked to a trade deal between the United States and India announced this month — could yet dampen Moscow’s appetite for Indian workers.
But for now it’s unclear how New Delhi will recalibrate its oil purchases, and Moscow has played down any suggestion of tensions.
Russia, facing labor crunch worsened by war, pivots to India for workers
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Russia, facing labor crunch worsened by war, pivots to India for workers
- Migrant labor crucial to Russia’s war economy
- Russia is employing fewer workers from Central Asia
Modi’s rooftop solar push slowed by reluctant lenders, states
- The shortfalls represent the latest challenge to India’s efforts to nearly double clean energy capacity to 500 gigawatts by 2030
SINGAPORE/MUMBAI/BHUBANESWAR, India: Indian Prime Minister Narendra Modi’s push to accelerate the rollout of rooftop solar power is falling short of targets despite heavy subsidies due to loan delays and limited support from state utilities, vendors and analysts say.
The shortfalls represent the latest challenge to India’s efforts to nearly double clean energy capacity to 500 gigawatts by 2030, and come as the government plans to suspend clean energy tendering targets amid a mounting backlog of awarded projects yet to be built.
Challenges to plans to increase solar uptake may mean India maintains its reliance on coal-fired power.
India’s Ministry for New and Renewable Energy created its subsidy program for residential solar panel installations in February 2024, covering up to 40 percent of the costs.
But residential installations at 2.36 million are well below the ministry’s target of 4 million by March, according to data from the program’s website.
“Banks’ reluctance to lend and states’ hesitance to promote the schemes could derail India’s efforts to transition away from coal,” said Shreya Jai, the lead energy analyst at research firm Climate Trends in New Delhi.
Roughly three in five rooftop solar applications filed on the scheme’s website are yet to be approved while about 7 percent have been rejected, according to government data on the program, known as the PM Surya Ghar.
In a statement to Reuters about the pending applications, the renewable energy ministry pointed to accelerating installations which have benefited over 3 million households, and said the scheme enables state-owned utilities to reduce subsidy payouts to keep residential power bills in check.
“The loan rejection rate varies across states,” the statement said.
Under PM Surya Ghar, consumers apply and select a vendor who handles paperwork and arranges bank financing for solar panels. After loan approval and installation, the vendor submits proof, after which the government subsidy is credited to the bank.
BANK DELAYS
However, banks have been rejecting or delaying loans for numerous reasons including lack of documentation, which they say is necessary to protect public funds.
“We are working with the government to push for some standard documentation, because it is necessary to avoid bad loans. Currently if loans go bad, banks can take away these panels but what will we do with these panels?” said a senior official at a major government-owned bank.
Chamrulal Mishra, a solar vendor in the eastern Indian state of Odisha, said applications are often rejected because the customer has missed electricity payments or because land records are still in the name of deceased relatives.
Residents there dispute the claims that they have missed payments, which they attribute to administrative errors after a change in utility ownership decades prior.
A spokesperson for India’s Department of Financial Services, which regulates the country’s banks, said they have responded to consumer feedback to allow co-applicants for loans to clear up title claims and the simplification of documentation requirements.
The Renewable Energy Association of Rajasthan said some banks are making collateral demands for loans under 200,000 Indian rupees ($2,208.87), despite scheme guidelines not requiring them to, which is constraining solar power additions.
State Bank of India and Punjab National Bank, some of the country’s largest lenders, did not reply to requests for comment on the matter.
State-owned utilities are also not promoting rooftop solar as much, as they are concerned about the loss of revenue as sales move off the electric grid.
“Wealthier households typically have high electricity consumption, tariffs and reliable roof access. When they shift from the grid, it leaves a larger financial burden,” said Niteesh Shanbog, an analyst at Rystad Energy.
