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Explained Contribution of Migrant Labour to Economy India

Here’s how migrant labor contributes to the Indian economy. The lockdown in India had left the migrant employees stranded with no cash or jobs. There are tens of millions of migrant employees within the nation working as laborers at construction sites, home helpers, road vendors amongst different everyday wage jobs.

Around one-third of the out-migrants were employed in the construction industry followed by agriculture and manufacturing. But who is a migrant worker? when a person is enumerated in the census at a different place than his or her place of birth she or he is considered a migrant. This can be semi-permanent, circular or a permanent change.

Globally the contribution of migrant workers has led to India becoming the top recipient of remittances with over 62.7 billion USD received in 2016. This includes both highly skilled and low skilled migrants. A report by McKinsey emphasizes that the movement of people across borders boosts Global productivity contributing roughly 6.7 trillion dollars or 9.4% of the global GDP in 2015.

Internally circular migrants in India contribute around 10% to the national GDP. Similarly, internal migration leads to income being sent to rural areas by the migrants employed in cities. Reports also suggest that migration is accelerating if we compare it to the previous decade. According to census estimates the annual rate of growth of labor migrants nearly doubled from 2.4% between 1991 to 2001 to 4.5% per annum from 2001 to 2011.

Nearly one-fifth of India’s labor force is an internal circular migrant accounting to over a hundred million people. One of the major reasons for movement means economic as the majority of migrants fall in the 20 to 29 age bracket. Internal migration in India accounts for 30% of the total population which is over 300 million people.

On the contrary international migration accounts for only 5 million that makes approximately 3 out of every 10 Indians and internal migrants. Estimates from NSSO shows that 14 to 15 million people are seasonal and temporary migrants, around 70% of these internal migrants are women.

When it comes to rural and urban areas, 67.2% of the migrants are rural and 32.8% are urban migration. As a share of whole migration elevated from around 28% in 1981 to 32.8% in 2001. Report projections counsel that by 2030 out of complete inhabitants of 1.4 Indians over 600 million individuals could also be residing in city areas. When it comes to state information states like Uttar Pradesh, Bihar, Chhattisgarh, Uttarakhand, Jharkhand, Rajasthan, Madhya Pradesh, Andhra Pradesh, and Tamil Nadu are key sources of out-migrants.

Top destination states for in migrants include le Delhi, Maharashtra, Gujarat, Haryana, Punjab, and Karnataka. In the job market, almost 90% of people work in the informal sector. The current pandemic that led to a lockdown from March 25th has the potential to push around 40 crore informal sector workers in India deeper into poverty that adversely impacted jobs and earnings.

Migrant workers are indispensable to the revival of the Indian economy could also be seen from the fact that states like Tamil Nadu and Karnataka had refused to send them home. Meanwhile, in order to boost the economy by incentivizing economic activities, several states including UP and MP have decided to dilute their labor loss.

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