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Opportunity in crisis – Migrants can now think of staying back in their native state and build it

This is a good opportunity for state governments

Mahima Kalra by Mahima Kalra
4 May 2020
in Opinions
Migrant Labourers
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The Covid-19 induced lockdown has brought severe problem for migrant labourers across the country. Millions of migrants were forced to walk to reach home, and those who could not go back to the home found it hard to meet their basic needs like a two-time meal, cloth and other necessities.

The hardship faced during Coronavirus lockdown will make migrant labourers reconsider their decision to migrate to cities and industrialized states to look for economic opportunities. Migrant labourers, especially those dependent on daily wages, migrate to cities having in mind that the cities would never stop and they shall find work at one place or the other, but the month-long lockdown has shaken their belief about the prowess of cities. 

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In India, majority of the migrant labourers who travel out of their states are from Bihar, West Bengal, UP, Jharkhand and Madhya Pradesh. These states have a large migrant ration and almost every family of rural areas have few people working outside the state and send remittances back home. 

As per 2011 census, Bihar has around 2.5 crore migrant workers, which is equal to the population of smaller states like Punjab or Haryana. Out of the 2.5 crore workers, 2 crores come from rural areas and 50 lakh from urban areas and the majority of them work as daily wage labourers in various states like Maharashtra, Haryana, Punjab and UT of Delhi. These migrant workers bring millions of dollars in remittances to the state and help the economy of the state as well as support their families.

Similarly, from other states like UP, MP, Jharkhand and West Bengal, millions of labourers migrate to industrialized or richer states in the western part of the country like Maharashtra, Gujarat, Kerala, Punjab and Haryana to earn better wages. These migrant labourers are a major source of income for the family back home. 

But these migrant labourers never imagined hardships they had to face during the Coronavirus lockdown. This would force them to reconsider the decision to migrate to other parts of the country for economic opportunity, and many of them might decide that it is better and secure to work in their states rather than migrating to thousands of kilometres for better wages.

In their states, these labourers would get a lower payment for their work and many of them might have no job at all. But given the fact Indian government provides enough welfare schemes to carry-on life easily and also provides necessities as public goods; in a situation where they do not find work, the government would come to rescue them in difficult times.

The governments in the states like UP and Bihar must strive to attract investment opportunities. The western companies, which made China factory of the world, are incentivizing their companies to move out to other countries after the outbreak of Coronavirus pandemic. 

These companies are looking for cheap labour, a pro-active and supporting government for hassle-free factory set-up, and rule of law. The states like UP are already working to attract these companies. 

A few days ago, Shinzo Abe led the Japanese government announced a financial package for Japanese companies which are planning to shift their base out of China. Japan is not the only country which wants its companies to move their manufacturing base out of China.

Many developed nations in Europe and America, which have manufacturing plants in China are also planning for the same. The United States is mulling over to incentivize the companies planning to shift production based out of China to their own country, or some other country with cheap labour and strong government like India, Bangladesh, Vietnam.

The Yogi government in Uttar Pradesh is planning to capitalize on this opportunity with both hands. CM Yogi Adityanath has directed the bureaucrats to prepare a special package which could be offered to these companies, in addition to the existing benefits.

Other states like Jharkhand, Bihar and West Bengal also need to make their states investment-friendly and strive to attract companies moving out of China. Through this, they can use the labour that works to built states like Maharashtra and Gujarat, to build their states. 

The lockdown has changed the mindset of migrant workers and now most of them prefer to work in their states even if paid less, the government needs to capitalize on this opportunity and make the BIMARU states- which supply cheap labour to western states for their factories industries- manufacturing hub. Reverse migration of the people has thus enabled the migrants to think of staying back in their native state and build opportunities there.

Tags: BIMARUCoronaviruscoronavirus lockdownMigrant LabourersMigrants
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