Why is the Rural to Urban Migration Rate in India so Low? An Empirical Analysis

Abstract

Little research has examined the relationship between rural to urban migration, urbanization, and economic growth in India. While urbanization is a key driver for economic growth in many countries, the rural to urban migration rate in India is low, potentially due to a lowering of the gap between urban-rural health, infrastructure, employment opportunities, and economic conditions. Using panel data models, I investigate the relevant determinants of rural to urban migration at the state level in India from 1991 to 2011. Panel data analysis suggests that higher per capita state income and a lower difference between urban to rural literacy rates encourage rural to urban migration. In this context, I suggest that urban job creation, improved urban infrastructure, and management of urban poverty and income inequality are essential to promoting rural to urban migration in India.