Rural-Urban Migration and Informal Sector Growth in India

Internal migration has become a means of providing cheap labour to the urban industrial sector. It significantly influences the socio-economic conditions of the migrants, as well as contributes to the economic development of the destination. Migration has become an integral part not only for economic prosperity but also acts as an instrument for social transformation. On the one hand, industrial and commercial centers contribute to growth and development by providing financial, commercial, technical support, and services related to education, health, and communication, etc. On the other hand, it led to rapid urbanization, which creates challenges for the optimal distribution of socio-economic resources to achieve sustainable development. This paper examines the various socio-economic dimensions of rural-urban migration and its inherent association with the urban informal sector. It critically analyzes labour relations, heterogeneity, and complexity of production, under the head of occupational shifts, employment-income opportunities, and urban growth and development, focusing on the urban informal sector.