Indian immigration “time bomb” detonates under Aussie youth

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In April. Bloomberg published an alarming report on India’s “worthless college degrees”.

Bloomberg noted there are now “thousands of small private colleges that don’t have regular classes, employ teachers with little training, use outdated curriculums, and offer no practical experience or job placements”.

“Half of all graduates in India are unemployable in the future due to problems in the education system”.

“Many businesses say they struggle to hire because of the mixed quality of education. That’s kept unemployment stubbornly high at more than 7%”.

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“Massive billboards with private colleges promising young people degrees and jobs are ubiquitous”, the report reads.

Bloomberg cited a study by Anil Swarup, a former secretary for school education.

In 2018, Swarup estimated that of 16,000 colleges handing out bachelor’s qualifications for teachers, a large number existed only in name.

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“Calling such so-called degrees as being worthless would be by far an understatement”, said Anil Sadgopal, a former university dean and government advisor.

Last week, CNN published an report questioning India’s ‘economic miracle’, arguing the nation has “too few jobs, too many workers”:

“Youth unemployment in the country is climbing sharply, a development that risks undermining the new darling of the world economy at the very moment it was expected to really take off””.

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“India’s working age population is young, growing, and projected to hit a billion over the next decade”.

“But for young Indians like Kumar, there’s a flip side to this so-called miracle: too few jobs and too much competition”.

“While people under the age of 25 account for more than 40% of India’s population, almost half of them – 45.8% – were unemployed as of December 2022, according to the Centre for Monitoring Indian Economy (CMIE), an independent think tank headquartered in Mumbai”.

“Some analysts have described the situation to CNN as a “time bomb”, warning of the potential for social unrest unless more employment can be created”.

“The bad news… is that experts warn the problem will only get worse as the population grows and competition for jobs gets even tougher”.

“Kaushik Basu, an economics professor at Cornell University and former chief economic adviser for the Indian government, described India’s youth unemployment rate as “shockingly high””.

India is now Australia’s largest source of migrants, most of whom arrive through the student visa route, which has been ruthlessly rorted.

The Albanese Government recently signed pacts with India that will make it easier for them to migrate to Australia for study and work.

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The Australia-India Migration and Mobility Partnership Agreement includes the following provisions:

  • Five year student visas, with no caps on the numbers of Indians that can study in Australia.
  • From 1 July this year, Indian graduates of Australian tertiary institutions on a student visa can apply to work without visa sponsorship for up to eight years.
  • The Mobility Arrangement for Talented Early Professionals Scheme allows 3000 of India’s top graduates and early career professionals to work and stay in Australia for up to two years. They can apply for a permanent skilled visa, and spouses will have unlimited work rights.
  • Three-month visitor visas available to Indians for family or business purposes (no caps on numbers).

The Albanese Government has also signed the Mechanism for Mutual Recognition of Qualifications, which requires Australia to recognise Indian vocational and university graduates to be “holding the comparable AQF qualification for the purposes of admission to higher education”.

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Australia must also recognise Indian vocational and university graduates to “to be holding comparable Australian qualifications for the purposes of general employment, where such qualifications are required”.

These deals are effectively an open door policy for Indians coming to Australia and could see millions arrive over coming decades, given India’s “shockingly high” unemployment and the superior quality of life in Australia.

In turn, young Australians will be forced to compete for jobs with desperate Indians willing to work for less, as well as for housing.

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Thanks to the Albanese Government’s reckless pacts, India’s immigration “time bomb” is set to blow-up in young Australians’ faces.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.