Why India needs more migrant labour, not less

Newly appointed Madhya Pradesh chief minister Kamal Nath kicked off a controversy this week by promising incentives for only those industries that give 70% of jobs to people from the state. He follows Gujarat CM Vijay Rupani and Maharashtra’s Sena parties in aggressively making an us-versus-them pitch. But these are economically irrational policies.

Madhya Pradesh CM Kamal Nath follows his counterpart in Gujarat Vijay Rupani...
Gujarat CM has promised to bring in a law making it mandatory for entrepreneurs to hire 80% workforce from the state, including 25% from the area where a new unit is set up.


But migration benefits both the ‘receiving’ state and labourers
Migration allows labour to reach places where it is needed, thus fulfi lling demand & keeping labour costs low; workers get paid well, raising their living standards.

As it is, not too many Indians shift base
Even though migrants constitute one-third of the total population, the proportion of interstate migration has remained low since the 1961 census.

Giveaways act as barrier to migration
This could be because of entitlements reserved for residents, such as...
Food ration: Quota for households
Education: Seats in colleges
MNREGS
Housing assistance programmes

Migrants’ share in growth
There is a view the share of migrants in urban growth is declining. This trend can be arrested by introducing portability of benefits, which will not hinder movement of people.

*Migration between neighbouring districts in the same state is at least 50% larger than migration between neighbouring districts in different states.

*State borders were found to be a bigger hindrance to migration of men than for women, and for younger men of working age.