Economic Implications Of Migration At Macro Level- A Study Of 3 States In Indiawithhighest In-Migrationrates

Abstract

This study examines the macroeconomic implications of rural-to-urban migration by focusing on three Indian states—Maharashtra, Delhi, and West Bengal—that report the highest rates of in-migration. With India’s rapid urbanization and expanding infrastructure sectors, the movement of labour from rural to urban areas has intensified. The research combines secondary literature and primary survey data collected from 409 migrant workers across construction sites in these states. Using descriptive statistics and advanced hypothesis testing, the study explores how migration influences household income, poverty reduction, consumption smoothing, risk diversification, and investment behaviour.
The findings suggest that migration significantly improves household economic conditions by enhancing income levels and enabling more stable consumption patterns. Migrants are found to be better off than non-migrants in terms of financial resilience and quality of life. Additionally, migration contributes to increased investment in housing, education, and agriculture. Contrary to concerns about the adverse effects of migration, the study finds minimal negative impact on dependents left behind. The Gini index analysis indicates post-migration income inequality varies across states. Overall, the study underscores the need for inclusive policy frameworks to support migrants and maximize their developmental contribution at the macro level.