Interstate Labour Migration in India: Economic Impact & Policy Challenges

Abstract

Interstate migration in India refers to the movement of individuals from one state to another, migrants are characterised by residing outside their usual state of residence for a period exceeding six months. There are 4,14,22,917 numbers of interstate migrants in India, as per Census 2011. The aim of this paper is to analyse various aspects of interstate labour migration taking place in India. The paper begins with discussing the trends in interstate labour migration- historical trends of migration and current pattern of interstate migration. The paper analyses the key drivers of interstate migration which are work, marriage & migration of earning members of the family. The paper also presents an overview of two important migration corridors namely, migration from Bihar and Uttar Pradesh to Maharashtra & migration from Odisha to Gujarat. In this paper, the economic impact of interstate labour migration is analysed. One of the key takeaways is that the contribution of interstate migrants to India Economy is roughly 10% of GDP. The paper also analyses the significant role of migration in urbanisation, infrastructure development and economic upliftment of migrant communities through the flow of remittances. The paper discusses the policy framework governing the interstate labour migration focussing on the role of central and state governments. Lastly, the paper analyses major challenges faced by migrant workers & recommends measures to overcome them. Challenges include the informal nature of work, housing problems, limited access to healthcare services & unsafe working conditions. The paper also recommends measures to tackle the challenges faced by migrant workers. These measures are formulation of state migration policy, greater coordination between states, data mapping and registration of migrant workers, social security measures & effective implementation of existing laws.

Introduction

India is a country with significant economic disparities across its regions. These disparities have typically widened and continuously grown after much needed economic reforms of 1991. The states in West and South are much more prosperous compared to states in the East, North-East and some of the states of North. This has resulted in lack of job opportunities, poor infrastructure and governance in these economically backward states which has prompted migration from these states towards states having more economic opportunities. The share of interstate migration in total migration has increased from 12% to 31.4% in the last decade which is testimony to the fact that economic disparities have  grown over the years . 

Although, the states where labour is migrating are more prosperous the job opportunities migrants get are typically in the informal sector. This informal nature of work brings in new challenges which migrants face. These challenges are poor working and living conditions, lack of social security and economic stability.  There are laws in place to address these challenges however they are not implemented properly. 

In this context, it is critical to analyse the economic impact of the interstate migration and policy framework governing it. And more crucial is to present a roadmap to tackle the challenges faced by migrants.

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Author : Aditya Taur