Migration Falls in India: What the ‘400 Million Dreams!’ Report Really Tells Us

A Surprise Drop in Migration Across India

Migration Falls in India: What the ‘400 Million Dreams!’ Report Really Tells Us: For decades, Indians moved from rural areas to cities chasing better jobs, schools, and opportunities. But the new ‘400 Million Dreams!’ report, released by the Economic Advisory Council to the Prime Minister (EAC-PM), reveals something unexpected—migration is declining. Compared to 2011, there are 5.4 million fewer migrants, marking an 11.8% drop. This shift isn’t just about numbers—it’s about changing rural realities.

Why Fewer People Are Moving

On the surface, the answer seems obvious—rural areas now have better roads, electricity, and housing, right? Partly true. Government schemes like PM Awaas Yojna-Gramin and rural electrification have improved infrastructure. But according to the report, these changes haven’t been fast or wide enough to fully explain the trend. In fact, some rural areas still face a lack of jobs, flat wages, and low economic activity.

How Transport and Banking Tell the Story

The report smartly uses data from railways and banks to track migration. Railway travel by non-suburban workers has fallen 6.7% post-COVID, and bus travel dropped 16% since 2011. Fewer people are physically moving between towns and cities for work.

Banking patterns also reveal migration trends. A high Savings Account to Current Account (SA/CA) ratio indicates people earning outside and sending money home. For instance, Bihar has a 10.14 SA/CA ratio, suggesting many residents work elsewhere. In contrast, cities like Delhi or Mumbai show low SA/CA ratios, which means local income is more common there.

Ruralisation: A Double-Edged Sword

One of the report’s most surprising insights is the idea of “ruralisation”. That sounds like a win, doesn’t it? But here’s the catch: it doesn’t mean people are thriving in villages. Instead, they might be staying back because urban jobs are scarce or too unstable. With automation and fewer factory jobs, cities aren’t offering as many chances as before. So, more people are sticking with low-productivity farm work, not because they want to—but because they have no better choice.

The Bigger Economic Picture

The workforce in India has grown steadily, but migration has dropped at a -1% rate annually. Only 6.7% of workers now migrate for jobs, down from 9.3% in 2011. This suggests that the urban economy isn’t absorbing labor like it used to, especially after COVID.

So, while fewer people are moving, it may not be because rural life has gotten dramatically better—but because urban opportunities have dried up.

What Should Policymakers Do?

This isn’t just a data trend—it’s a policy challenge. The government needs to create more rural jobs, support skill development, and boost small-scale industries. Instead of forcing people to choose between migration or poverty, we should give them real options. Imagine if youth in rural Jharkhand or Odisha could get skilled, start a business, or find a local industry job—that’s the vision this report calls for.

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Migration Falls in India: What the ‘400 Million Dreams!’ Report Really Tells Us: