EU SMEs Face a Skills Gap — India Emerges as a Key Talent Partner

A new Eurobarometer survey, the European Union’s long-running public opinion programme used by the European Commission to assess views and experiences across Member States, has highlighted a growing challenge for European small and medium-sized enterprises (SMEs). Nearly half of these companies say they struggle to find workers with the right skills, while recruitment from outside the EU remains limited despite clear demand for support. The findings also show that the EU is introducing new ways to make international recruitment easier. India is a key part of this effort, especially for talent in the ICT sector.

Skills shortages and limited non‑EU recruitment

According to the latest Eurobarometer survey on perceived obstacles and opportunities in recruiting from outside the EU, nearly half of European SMEs (46%) report difficulties in finding workers with the right skills. One in seven SMEs has tried to recruit workers from outside the EU in the past two years, and among those that have done so (14% of the sample), 54% describe the recruitment process as difficult.

The survey identifies the complexity of administrative and immigration procedures as the most frequently cited barrier (31%), followed by difficulty in finding suitable candidates (25%) and language barriers (24%).Most SMEs manage international recruitment processes directly, with limited awareness of available public support, and a higher reliance on private recruitment agencies when hiring from abroad.

What SMEs say they need

When asked how recruitment from outside the EU could be improved, SMEs point to a combination of financial and practical support measures.They highlight the need for financial support (31%), better information and guidance (25%), assistance in finding candidates (23%), support for workplace integration (20%), and immigration and relocation assistance (18%).

These findings align with broader Commission strategies on visas and migration management, which seek to simplify and accelerate procedures for attracting talent, including through improved recognition of qualifications and skills.They also provide a clear backdrop for new EU-led instruments designed to connect employers with non‑EU workers in shortage occupations.

EU Talent Pool: a new EU‑wide gateway

In response to persistent labour and skills shortages, the EU is establishing the EU Talent Pool, the first EU‑wide platform dedicated to facilitating international recruitment from outside the Union.The platform will help match job vacancies in shortage occupations with non‑EU jobseekers, allowing both employers and candidates to register profiles and access clear, transparent information on rules in participating Member States.

The EU Talent Pool is designed as a voluntary tool for Member States and employers and will complement existing mobility instruments such as EURES. It aims to make recruitment more predictable and accessible for SMEs, while ensuring respect for national competences on work and residence permits and for fair recruitment standards.

India’s role in Europe’s skills strategy

India is emerging as a key partner in the EU’s efforts to attract highly skilled talent, particularly in information and communication technologies. As an early deliverable of the EU–India cooperation on mobility, the first European Legal Gateway Office has been launched in New Delhi to facilitate safe, legal and well‑informed mobility of Indian students, researchers and professionals in the ICT sector to all 27 EU Member States.

Implemented with the International Centre for Migration Policy Development (ICMPD), the European Legal Gateway Office operates through a Gateway Office in India, a Support Office in the EU and a digital tool that serves as a one‑stop hub for information on mobility pathways, visa procedures, skills and qualification requirements.The initiative also supports EU-based employers and higher education institutions in engaging with Indian ICT talent, offering practical guidance and country-specific information to both sides.

Connecting SME demand with Indian ICT talent

Taken together, the Eurobarometer results, the forthcoming EU Talent Pool and the European Legal Gateway Office in India illustrate how EU and Indian partners are constructing legal pathways that can help SMEs address skills shortages while supporting mobility for highly qualified workers. In particular, the combination of an EU‑wide recruitment platform and a dedicated India–EU mobility hub in ICT offers SMEs structured channels to identify and recruit Indian professionals in areas where skills are in short supply.