By Anubhi Srivastava

Abstract

The Immigration and Foreigners Bill, 2025 aims to modernize India’s immigration framework by centralizing processes, enhancing security, and enforcing compliance. While many argue that it streamlines outdated laws and strengthens national security, critics highlight the risk of excessive centralization, bureaucratic inefficiencies, and economic drawbacks. Drawing from global case studies, including post-Brexit UK and Germany’s federal approach, this article underscores the bill’s potential impact on foreign investment, skilled migration, and regional autonomy. It also explores why India must balance security with economic competitiveness by ensuring that immigration policies remain flexible and attractive for global talent while addressing local needs and avoiding excessive bureaucratic hurdles.

Modernizing India’s Immigration Laws: Addressing Security and Policy Gaps

Given the rising global migration crisis, border security concerns, and the increasing complexities of illegal immigration, the bill is seen as a crucial step towards a more structured immigration framework. Recent developments, including the India-Canada diplomatic tensions over visa suspensions and India’s growing role as a global economic hub, also make this bill particularly relevant. Moreover, India has faced challenges in dealing with undocumented immigrants, particularly in border states like Assam and West Bengal. As highlighted in past debates over the Citizenship Amendment Act, 2019 (CAA) and the National Register of Citizens (NRC), India needs a clear and updated immigration policy to distinguish between legitimate migrants, asylum seekers, and illegal forces.

The Immigration and Foreigners Bill, 2025 (hereinafter referred to as the “bill”) seeks to streamline various services related to immigration and foreigners, including their entry, exit and stay in the country. This bill repeals four existing laws, namely: Foreigners Act, 1946, Passport (Entry into India) Act, 1920, Registration of Foreigners Act, 1939 and the Immigration (Carriers’ Liability) Act, 2000 which govern the services related to immigration and foreigners.

A New Era of Immigration Laws: Key Objectives of the Bill

The bill is designed around three primary objectives:

1. Modernization of Immigration Laws: The bill replaces four colonial-era acts, introduces digital tracking and biometric verification. Additionally, by establishing a centralized Bureau of Immigration, it aims to bring India’s immigration policies in line with international standards, thereby attempting to shift to a more centralized, structured and transparent system. On the flip side, a centralized Bureau of Immigration may lead to delays, red tape, and administrative backlogs, similar to issues seen in India’s Aadhaar system and centralized visa processing delays in the US. It is also crucial to note that immigration issues also vary across

states, particularly in border regions like Assam and West Bengal where immigration concerns are highly multi-faceted and localized. A one-size-fits-all policies risks overlooking these historical and demographic differences, thereby limiting state governments’ ability to adapt immigration policies to regional needs.

• Strengthening National Security: The bill implements strict visa screening procedures to prevent illegal immigration, human trafficking, and terrorist infiltration. It also enforces stronger penalties for visa overstays, fake documentation, and unauthorized entry. Furthermore, it aims to improve border control mechanisms with better cooperation between immigration officers and security forces, thereby strengthening national security.
• Enhancing Compliance and Accountability: The bill mandates foreign nationals to register upon arrival, with institutions (hotels, universities, hospitals) required to report foreign residents. The bill enforces harsher fines and deportation policies for those violating visa conditions. Furthermore, individuals overstaying their visas can face fines up to ₹10 lakh ($12,000) and imprisonment up to 7 years. It implements mandatory compliance from airlines and carriers, which must submit detailed passenger records to immigration authorities before arrival, similar to the U.S. Advance Passenger Information System (APIS). However, the implementation of digital tracking and biometric verification raises concerns about data privacy and potential misuse of personal information, especially in the absence of a robust data protection law in India.

Case Study: European Union and Germany

Drawing parallels and lessons from global experiences, the European countries have struggled with immigration policies, particularly due to the 2015 migrant crisis and subsequent asylum restrictions. Countries like France have managed to balance security with economic interests by offering fast-track residency for high-skilled migrants. Therefore, India’s bill, while emphasizing security, must also ensure it does not create unnecessary hurdles for students, skilled professionals, and investors.

Another interesting example is that of Germany’s federal structure. It allows its individual states (Länder) to tailor integration policies to their specific regional needs. This decentralized approach enables regions experiencing labor shortages to implement measures that expedite the recruitment and integration of skilled workers. Such flexibility ensures that local economic demands are met while maintaining national security standards.

From the Economic Lens

It is crucial to examine immigration not only from a social perspective but also through an economic lens to fully understand its multifaceted impact on a nation’s labor market and fiscal health. Immigration policies directly influence start-ups and key industries, as immigrant entrepreneurs play a vital role in driving innovation and job creation. Additionally, the economic consequences of talent migration, particularly a country’s ability to attract global talent and the challenges of “brain drain” due to emigration, significantly affect long-term economic growth and competitiveness.

Restrictive immigration policies may push skilled professionals toward more developed countries (e.g., Canada and Australia) for better prospects in high-income nations. According to a written response by the Ministry of External Affairs in the Rajya Sabha, 216,219 Indians renounced their citizenship in 2023. This figure represents a significant increase compared to earlier years. For instance, in 2011, the number stood at 122,819, indicating a substantial rise over the past decade. The data highlights the need for policies aimed at retaining skilled professionals and making India an attractive destination for global talent.

It has long been the global norm for individuals to migrate from lower HDI countries to higher HDI nations in pursuit of better opportunities hence immigration policies in developed nations can significantly impact labor markets globally. Countries with high HDI benefit from skilled immigrants, whereas low HDI countries suffer from a loss of workforce therefore, India must ensure its policies do not deter skilled migrants and foreign investment. If India is serious about achieving developed nation status, it must shift to an active architect of talent retention and attraction. The consistent outflow of skilled professionals to countries reflects not just global aspirations but domestic shortcomings. To position itself as a hub for innovation, entrepreneurship and global talent, India must focus not only on attracting professionals from abroad but also on creating conditions that make talented individuals want to stay within India. This means streamlining business and work visas, fostering diaspora engagement, and crafting an environment where skilled professionals find career satisfaction, opportunities for growth, and a high quality of life. It’s time to pull our socks up, ensuring India becomes a destination not just for migrants but for its own talent to flourish.

The Deccan Herald article titled “Not the End of Immigration Challenges for India” highlights that India’s immigration discourse remains largely centered on national security and demographic concerns, often sidelining the significant economic opportunities associated with migration. This narrow framing has economic consequences. Unlike countries such as Canada, Australia, or the UAE, which actively promote skilled migration as a tool for innovation and growth, India has hesitated to position itself as an attractive destination for global talent. Furthermore, its limited engagement in international migration dialogues and the absence of robust bilateral frameworks mean that India risks losing strategic influence in shaping global talent flows. This is particularly concerning for key labor-exporting sectors like healthcare and technology, where international mobility is closely tied to economic competitiveness.

Thereby, considering all arguments, it is safe to conclude that:

1. Increased bureaucratic hurdles may discourage foreign investors who need seamless business immigration processes.
2. Stricter visa policies and complex regulations could push international students and skilled workers toward countries with simpler immigration frameworks. Strict foreigner registration rules could hinder tourism and hospitality businesses, leading to losses in a major revenue sector.

Countries that implement excessively strict immigration laws often see skilled labor migrating elsewhere. For example, post-Brexit UK saw a decline in EU workers, impacting industries like healthcare and IT. India must ensure it remains an attractive destination for global talent.

Immigration Reform in India: Striking the Right Balance

The Immigration and Foreigners Bill, 2025, represents a much-needed reform in India’s immigration system by replacing outdated laws and addressing security concerns. However, India must ensure that these regulations do not create unnecessary barriers for skilled workers, international students, and foreign investors. The experiences of Europe serve as a valuable lesson; a balanced approach is needed which protects national security while fostering economic growth and international collaboration. The success of this bill will depend on how effectively it is implemented and whether it adapts to India’s evolving socio-economic needs

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About the Author

Anubhi Srivastava is a member of the research cluster at Jindal Policy Research Lab, where she focuses to critically analyze power structures and their influence on social mobility while exploring the broader connections between law, policy, and society.