Wednesday, February 9, 2011

Does Migration of Workers From Rural to Urban Help The Economy?



Migration is the movement of humans from one area to another. Due to several reasons (mostly economic) people from rural areas have been migrating to prosperous urban regions. Does this migration help Indian economy? Destination : The impact of migration on one hand is a burden on the urban infrastructure but on the other hand helps the urban economy to grow by providing cheaper labour. Source : The migration of workers should hence reduce the labour available in the rural India. This should impact agriculture and allied industries. This is not always the case. There is a positive side to this migration which has started to play out. Some of the farmers have started using machinery in agriculture. Farmers have reported huge savings compared to using labour for the same job. The future of farming is going to change gradually – agriculture becoming capital intensive from labour intensive, consolidation of farm lands and companies showing interest in agriculture would increase. These would improve productivity of farming - both yield and financial. The mechanisation of agriculture would in turn pump up manufacturing sector growth. Hence the migration is directly and indirectly having positive impact on the economic growth of India.