For many Indian migrants, Armenia is a temporary stop on their journey to better economic opportunities, often using it as a stepping stone to secure residency and eventually move to Europe
Armenia has witnessed a significant influx of Indian labor migrants over the past year and a half, reshaping the capital city Yerevan’s demographic and economic landscape. Traditionally an ethnically homogenous country, Armenia has long relied on its citizens emigrating for work. However, this new wave of migration presents a novel and somewhat ironic twist to the country’s labor dynamics.
The trend began in 2018 when Armenia’s economy started to show dynamic growth, creating a demand for affordable labor that local businesses struggled to meet. Since then, the number of Indian migrants has steadily increased. While there were only a few thousand Indian citizens in Armenia in 2018, recent estimates suggest this number has grown to between 20,000 and 30,000. According to Armstat, the State Statistics Committee, 54,582 Indian citizens entered Armenia in 2023, though many of these are classified as “tourists.”
This classification blurs the lines between tourists and labor migrants, as many do not officially register for residency or work permits. Economists believe most Indians in Armenia work in the shadow economy, a sentiment echoed by former Economy Minister Vahan Kerobyan, who acknowledged the low tourist numbers from India.
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The influx coincides with strengthening diplomatic and economic ties between Armenia and India. Armenia has reportedly signed substantial defense contracts with India, further solidifying their strategic partnership
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Despite occasional xenophobic incidents, the general sentiment towards Indian migrants remains positive
Indian labor migrants are primarily driven by the prospect of higher wages and the strengthening of Armenia’s currency, the dram. Armenia’s GDP per capita has nearly doubled from just over $4,200 in 2018 to over $8,200 in 2023, making it an attractive destination compared to India’s GDP per capita of around $2,800.
Armenian economist Armen Ktoyan attributes the influx to these economic incentives, noting that businesses benefit from hiring Indian labor in sectors such as construction, agriculture, and services. This helps reduce production costs and stimulates economic growth.
Many Indian migrants take up low-skilled jobs due to language barriers, with delivery services being a popular choice. Suraj, a 27-year-old courier, exemplifies this trend. He lives frugally, managing his expenses carefully to save money and send around $150-200 back home each month. Others, like Ajit, have adapted and found more profitable work by learning Armenian and becoming taxi drivers.
The arrival of Indian workers has sparked mixed reactions among locals. Some fear job displacement due to lower wage expectations, while others, particularly business owners, appreciate the healthy competition and productivity boost.
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