This sharp price hike could impose severe financial strain on most vulnerable citizens, who work under harsh conditions to support their families back home

For millions of Indian workers abroad, securing and renewing essential documents like passports and visas is already a challenging process. However, a newly revised Request for Proposal (RFP) by the Government of India threatens to make it even more difficult by drastically increasing service fees. This move, which could raise costs by 15 to 20 times, is set to impose a significant financial burden on blue-collar workers-individuals who work tirelessly overseas to support their families and contribute to India’s economy through remittances.

It is a fact that adrastic fee hike threatens millions of Indian workers abroad. The Government of India has introduced a revised Request for Proposal (RFP) for outsourcing Passport, Visa, and Consular (CPV) services across 23 Indian Missions/Posts worldwide. There is genuine concern that this new fee structure could increase service costs by 15 to 20 times and that could impose a heavy financial burden on those blue-collar workers who is considered the backbone of India’s global diaspora.

A mandatory bundled service cannot be justified at an exorbitant price! The proposed model enforces a “Service Fee per application” that requires applicants to pay for a bundled package, including document digitization, fingerprint and facial biometric capture, and four additional services-photocopying, photography, form filling, and courier services. Crucially, this fee is mandatory, even if the applicant does not require all these services.

As a result, a simple service that currently costs $5-$7 could surge to an alarming $90-$100. This hike disproportionately affects Indian workers in Gulf countries, the UK, and beyond, many of whom struggle to make ends meet.

It is also well-known that Indian blue-collar workers abroad face several unseen struggles. They formthe backbone of industries such as construction, hospitality, and domestic labour across the Gulf, the UK, and Southeast Asia. Most come from humble backgrounds, often taking loans to secure jobs abroad. Their primary goal is to support their families back home, sending every possible rupee as remittance to cover household expenses, children’s education, and medical needs.

Despite enduring harsh working conditions, low wages, and exploitative contracts, these workers persevere for a better future. However, the government’s latest fee hike threatens their already fragile financial stability.

It is easy to understand how this fee hike will harm Indian workers. Earning as little as Rs 20,000- Rs 30,000 per month, many blue-collar workers barely manage to save. A sudden jump in service fees-from $5-$7 to $90-$100-means they will have to cut down on basic necessities. Many may even struggle to renew passports or access essential documentation, jeopardizing their employment abroad.Many of these workers rely on loans to finance their overseas employment. Higher service fees add financial strain, potentially pushing them into debt or forcing them to return home jobless because they cannot afford visa renewals or work permits.

Furthermore, the hike will be a direct hit to India’s foreign remittances. India received over $100 billion in remittances in 2023, much of it from blue-collar workers. If rising service costs force many to return home, the country could see a significant drop in remittances, affecting millions of dependent families and impacting the national economy. The question remains-will India’s policymakers stand by their overseas workers, or will they burden them further with unnecessary and exploitative service costs? The government must reconsider this fee structure to prevent further hardship for millions of Indian workers who contribute not only to their families but also to the nation’s economy.

(The writer is a senior journalist; views are personal)