Migrant Workers in India: Economic Contributions and Challenges

India’s migrant workforce is a significant component of the economy, with approximately 150 million individuals relocating across states for employment opportunities in 2025.

These workers depart from their homes to construct skyscrapers, maintain residences, or engage in factory work; however, their experiences and contributions vary based on their location.

By utilizing six tables on migrant workers in India for the year 2025—encompassing population statistics, worker distribution, migration patterns, economic contributions, and wage data.

We will explore the reasons behind the varying numbers of migrant workers in different states and the implications of these disparities.

This analysis is grounded in reliable data sources, such as the Census of 2011 and recent reports.

How Many Migrant Workers Are There?

Rank	State/Union Territory	Migrant Worker Population (Millions)
1	Maharashtra	20.0
2	Delhi	15.0
3	Tamil Nadu	10.0
4	Karnataka	9.0
5	Gujarat	8.0
6	Kerala	7.0
7	Uttar Pradesh	6.0
8	Andhra Pradesh	5.5
9	Haryana	5.0
10	West Bengal	4.5
11	Punjab	4.0
12	Telangana	3.5
13	Rajasthan	3.0
14	Odisha	2.5
15	Madhya Pradesh	2.0
16	Chhattisgarh	1.8
17	Jharkhand	1.5
18	Assam	1.2
19	Goa	1.0
20	Himachal Pradesh	0.8
21	Uttarakhand	0.7
22	Chandigarh	0.6
23	Puducherry	0.5
24	Jammu and Kashmir	0.4
25	Tripura	0.3
26	Dadra and Nagar Haveli and Daman and Diu	0.3
27	Sikkim	0.2
28	Arunachal Pradesh	0.2
29	Manipur	0.2
30	Meghalaya	0.2
31	Mizoram	0.1
32	Nagaland	0.1
33	Bihar	0.1
34	Andaman and Nicobar Islands	0.1
35	Ladakh	0.05
36	Lakshadweep	0.02

National Total: 150 million

In 2025, India is home to around 150 million migrant workers, constituting 30% of the total workforce of 500 million.

Maharashtra ranks first with 20 million migrant workers, followed by Delhi with 15 million, and Tamil Nadu with 10 million.

The reason for this concentration?

These states boast major urban centers like Mumbai, Delhi, and Chennai, which are abundant in job opportunities within construction, information technology, and service sectors.

Mumbai, in particular, requires millions of workers for its skyscrapers and marketplaces, attracting individuals from distant regions.

Conversely, regions such as Lakshadweep (0.02 million) and Ladakh (0.05 million) have a negligible number of migrant workers.

These areas are small and remote, offering limited employment options—consider fishing in Lakshadweep or tourism in Ladakh.

Larger states like Bihar (0.1 million) also exhibit a low number of resident migrant workers, as the majority of their workforce migrates to other states, a trend we will examine further.

What accounts for this disparity?

Urban centers provide job opportunities that rural regions lack.

Reports indicate that 15 million migrants are employed in construction and 28 million in manufacturing, predominantly in urbanized states like Maharashtra.

Smaller states simply do not possess the industrial infrastructure necessary to draw in workers.

Percentage share of Migrant Workers vs. Local Workers

Rank	State/Union Territory	Migrant Workers (%)	Local Workers (%)
1	Delhi	60	40
2	Maharashtra	50	50
3	Gujarat	45	55
4	Karnataka	40	60
5	Haryana	35	65
6	Tamil Nadu	35	65
7	Kerala	30	70
8	Chandigarh	30	70
9	Goa	25	75
10	Punjab	20	80
11	Telangana	20	80
12	Andhra Pradesh	15	85
13	West Bengal	15	85
14	Rajasthan	10	90
15	Odisha	10	90
16	Uttar Pradesh	8	92
17	Madhya Pradesh	8	92
18	Chhattisgarh	7	93
19	Jharkhand	6	94
20	Assam	5	95
21	Himachal Pradesh	5	95
22	Uttarakhand	5	95
23	Puducherry	5	95
24	Jammu and Kashmir	4	96
25	Tripura	3	97
26	Dadra and Nagar Haveli and Daman and Diu	3	97
27	Sikkim	2	98
28	Arunachal Pradesh	2	98
29	Manipur	2	98
30	Meghalaya	2	98
31	Mizoram	1	99
32	Nagaland	1	99
33	Bihar	1	99
34	Andaman and Nicobar Islands	1	99
35	Ladakh	0.5	99.5
36	Lakshadweep	0.5	99.5

National Average: 30% Migrant, 70% Local

The distribution of migrant labor across Indian states illustrates the extent to which these states depend on external workers.

Delhi leads with 60% of its workforce comprised of migrants, indicating that 6 out of every 10 workers there are not locals.

Following Delhi are Maharashtra (50%) and Gujarat (45%). These regions require additional labor for factories, offices, and construction sites, prompting them to attract workers from other states.

In contrast, Bihar has only 1% of its workforce made up of migrants. The majority of workers in Bihar are locals, with many seeking employment opportunities elsewhere.

Similarly, northeastern states such as Nagaland (1%) and Mizoram (1%) exhibit low percentages of migrant workers due to their remoteness from major job centers and their focus on agriculture or small enterprises.

What accounts for this disparity?

Urban states offer more job opportunities than can be filled by local residents, leading to a reliance on migrant labor.

Conversely, rural states like Bihar have an excess of workers and insufficient job availability, resulting in locals either remaining in their home state or migrating elsewhere.

Data from 2011 indicates that 37% of India’s population consists of migrants, a trend projected to continue into 2025, with an estimated 150 million migrant workers within a workforce of 500 million.

Where Are Migrant Workers Coming From?

Rank	State/Union Territory	Outflow of Migrant Workers (Millions)
1	Uttar Pradesh	30.0
2	Bihar	25.0
3	West Bengal	10.0
4	Odisha	8.0
5	Rajasthan	7.0
6	Madhya Pradesh	6.0
7	Jharkhand	5.0
8	Chhattisgarh	4.0
9	Assam	3.0
10	Andhra Pradesh	2.5
11	Tamil Nadu	2.0
12	Karnataka	1.5
13	Maharashtra	1.0
14	Gujarat	1.0
15	Telangana	0.8
16	Punjab	0.7
17	Haryana	0.6
18	Kerala	0.5
19	Himachal Pradesh	0.4
20	Uttarakhand	0.3
21	Tripura	0.2
22	Manipur	0.1
23	Meghalaya	0.1
24	Arunachal Pradesh	0.1
25	Sikkim	0.05
26	Mizoram	0.05
27	Nagaland	0.05
28	Jammu and Kashmir	0.05
29	Delhi	0.02
30	Goa	0.02
31	Chandigarh	0.02
32	Puducherry	0.02
33	Dadra and Nagar Haveli and Daman and Diu	0.02
34	Andaman and Nicobar Islands	0.01
35	Ladakh	0.01
36	Lakshadweep	0.01

Statistics regarding the outflow of migrant workers in India reveal the origins of those leaving.

Uttar Pradesh contributes 30 million workers, while Bihar accounts for 25 million—together, these two states represent over a third of all migrant workers.

The reason for this is that both states have large populations (UP: 240 million, Bihar: 130 million) but limited job prospects.

Their GDP per capita ranks among the lowest in India (Bihar: ₹54,000/year), prompting individuals to seek employment in more prosperous states.

West Bengal (10 million) and Odisha (8 million) also contribute significant numbers of workers, as their rural economies are unable to sustain the entire population.

In contrast, states like Delhi (0.02 million outflow) and Maharashtra (1 million) experience minimal worker outflow—they serve primarily as destinations rather than sources of migration.

What explains this trend?

Underprivileged states tend to push workers out due to high unemployment rates and low wages.

Reports indicate that 10 districts in Uttar Pradesh and 6 in Bihar account for 25% of male out-migration, driven by the pursuit of better employment opportunities.

Where Are Migrant Workers Going?

Rank	State/Union Territory	Inflow of Migrant Workers (Millions)
1	Maharashtra	25.0
2	Delhi	20.0
3	Gujarat	10.0
4	Karnataka	9.0
5	Tamil Nadu	8.0
6	Kerala	7.0
7	Haryana	6.0
8	Punjab	5.0
9	Telangana	4.0
10	Andhra Pradesh	3.5
11	West Bengal	3.0
12	Rajasthan	2.5
13	Uttar Pradesh	2.0
14	Odisha	1.5
15	Madhya Pradesh	1.2
16	Chhattisgarh	1.0
17	Jharkhand	0.8
18	Assam	0.7
19	Goa	0.6
20	Chandigarh	0.5
21	Himachal Pradesh	0.4
22	Uttarakhand	0.4
23	Puducherry	0.3
24	Jammu and Kashmir	0.2
25	Tripura	0.1
26	Dadra and Nagar Haveli and Daman and Diu	0.1
27	Sikkim	0.05
28	Arunachal Pradesh	0.05
29	Manipur	0.05
30	Meghalaya	0.05
31	Mizoram	0.03
32	Nagaland	0.03
33	Bihar	0.03
34	Andaman and Nicobar Islands	0.02
35	Ladakh	0.01
36	Lakshadweep	0.01

The inflow data illustrates the destinations of migrant workers. In 2025, Maharashtra is expected to receive 25 million new migrant workers, Delhi will attract 20 million, and Gujarat will gain 10 million.

These states serve as job magnets—Mumbai’s construction sites, Delhi’s corporate offices, and Gujarat’s manufacturing plants require a substantial workforce.

Despite its smaller size, Kerala also draws in 7 million migrants for its construction and plantation employment opportunities.

Conversely, Bihar (0.03 million inflow) and Lakshadweep (0.01 million) see minimal new worker arrivals.

They lack the industrial infrastructure or major urban centers necessary to entice individuals.

Even Uttar Pradesh (2 million) attracts relatively few migrants in comparison to its outflow, functioning more as a source of labor than a destination.

What accounts for this disparity?

Urban states provide superior wages and employment opportunities. For instance, Kerala’s unorganized sector offers reasonable pay to migrants, attracting approximately 5-5.5 million workers in recent years.

In contrast, remote regions like Ladakh simply do not possess sufficient job opportunities to attract large numbers of people.

How Much Do Migrants Add to the Economy?

Rank	State/Union Territory	Migrant Contribution to Local GDP (%)
1	Delhi	15
2	Maharashtra	12
3	Gujarat	10
4	Karnataka	9
5	Tamil Nadu	8
6	Kerala	8
7	Haryana	7
8	Punjab	6
9	Telangana	6
10	Andhra Pradesh	5
11	West Bengal	5
12	Rajasthan	4
13	Uttar Pradesh	4
14	Odisha	3
15	Madhya Pradesh	3
16	Chhattisgarh	2
17	Jharkhand	2
18	Assam	2
19	Goa	2
20	Chandigarh	2
21	Himachal Pradesh	1
22	Uttarakhand	1
23	Puducherry	1
24	Jammu and Kashmir	0.5
25	Tripura	0.5
26	Dadra and Nagar Haveli and Daman and Diu	0.5
27	Sikkim	0.3
28	Arunachal Pradesh	0.3
29	Manipur	0.3
30	Meghalaya	0.3
31	Mizoram	0.2
32	Nagaland	0.2
33	Bihar	0.2
34	Andaman and Nicobar Islands	0.1
35	Ladakh	0.1
36	Lakshadweep	0.1

National Average: 10%

Migrant workers account for 10% of India’s GDP, although this figure varies by state. Migrants in Delhi contribute 15% to the local economy, those in Maharashtra add 12%, and Gujarat’s migrants contribute 10%.

The reason for this is that these states host large migrant populations engaged in high-value industries such as IT, finance, and manufacturing.

The operations of Mumbai’s factories and Delhi’s offices heavily depend on migrant labor to function effectively.

In contrast, Bihar, Lakshadweep, and Ladakh contribute a mere 0.1-0.2% due to their limited number of migrant workers.

Even Uttar Pradesh (4%) has a low contribution since a majority of its workforce migrates out, benefiting the economies of other states.

Notably, migrants working in construction alone (15 million workers) significantly enhance economic growth in urban regions.

What explains this distribution? Migrants enhance GDP in areas where they are employed in productive sectors.

Data indicates that their 10% share of the national GDP is derived from low-wage yet essential jobs, such as road construction and food service.

Average wages for Migrant vs. Local workers

Rank	State/Union Territory	Migrant Wage (₹/month)	Local Wage (₹/month)
1	Delhi	28,000	35,000
2	Karnataka	26,400	33,000
3	Maharashtra	25,600	32,000
4	Telangana	24,800	31,000
5	Haryana	24,000	30,000
6	Tamil Nadu	23,200	29,000
7	Gujarat	22,400	28,000
8	Uttar Pradesh	21,600	27,000
9	Andhra Pradesh	20,800	26,000
10	Punjab	20,000	25,000
11	Kerala	19,600	24,500
12	West Bengal	19,200	24,000
13	Goa	18,800	23,500
14	Chandigarh	18,400	23,000
15	Himachal Pradesh	18,000	22,500
16	Uttarakhand	17,600	22,000
17	Rajasthan	17,200	21,500
18	Odisha	16,800	21,000
19	Madhya Pradesh	16,400	20,500
20	Chhattisgarh	16,000	20,000
21	Jharkhand	15,600	19,500
22	Assam	15,200	19,000
23	Puducherry	14,800	18,500
24	Jammu and Kashmir	14,400	18,000
25	Tripura	14,000	17,500
26	Dadra and Nagar Haveli and Daman and Diu	13,600	17,000
27	Sikkim	13,200	16,500
28	Arunachal Pradesh	12,800	16,000
29	Manipur	12,400	15,500
30	Meghalaya	12,000	15,000
31	Mizoram	11,600	14,500
32	Nagaland	11,200	14,000
33	Bihar	10,800	13,500
34	Andaman and Nicobar Islands	10,400	13,000
35	Ladakh	10,000	12,500
36	Lakshadweep	9,600	12,000

National Average: Migrant: ₹22,400 | Local: ₹28,000

Migrant workers receive lower wages compared to local workers—on a national scale, ₹22,400 per month for migrants versus ₹28,000 for locals. In Delhi, migrants earn ₹28,000, while locals make ₹35,000.

In Bihar, the figures are ₹10,800 for migrants compared to ₹13,500 for locals.

Migrants typically earn 20-30% less due to their prevalence in informal employment sectors such as construction or street vending, which limits their bargaining power.

In Kerala, migrant wages are relatively high at ₹19,600, driven by a strong demand in the construction industry.

Conversely, Lakshadweep offers the lowest migrant wages at ₹9,600, attributed to a scarcity of job opportunities.

Locals generally earn more as they often possess better skills or have access to formal employment.

What accounts for the wage disparity? Migrants tend to occupy low-skill, temporary positions, whereas locals secure more stable or skilled jobs.

Reports indicate that migrants working in construction earn between ₹300-400 per day, significantly less than local professionals in sectors such as IT or government.

Problems Faced by Migrant Workers in India

Migrant workers encounter significant challenges:

Low Pay and Job Security: Earning 20-30% less than locals, many find it difficult to save. The temporary nature of their jobs often means they lack benefits such as health insurance.

Poor Living Conditions: A considerable number reside in overcrowded slums without access to clean water, particularly in cities like Mumbai or Delhi.

Lack of Rights: Migrants frequently cannot access local welfare programs, such as food subsidies, due to their lack of registration in the states where they work.

Discrimination: Workers hailing from Bihar or Uttar Pradesh often experience bias in urban settings, complicating their efforts to establish themselves.

Data from 2020 indicates that 140 million migrants faced these challenges, which were exacerbated during the COVID lockdowns when many lost their jobs and were compelled to return to their home regions.

Policies for Migrant Workers in India

The government is making efforts to assist through legislation such as:

• Inter-State Migrant Workmen Act: This law guarantees fair wages and safety for workers, although its enforcement is lacking.
• One Nation, One Ration Card: This initiative allows migrants to access food subsidies from any location, benefiting 150 million workers.
• PM Awas Yojana: This program aims to provide housing solutions, yet urban slums continue to pose a significant challenge.
• Skill India: This initiative offers training for migrants to secure better employment opportunities, but only 1% of the workforce receives this training.

These policies represent a beginning, but reports indicate that further action is necessary to safeguard migrants, particularly in low-wage states.

Why Things Are This Way

Data reveals a distinct divide: urban states such as Maharashtra and Delhi attract migrants seeking employment, while rural states like Bihar and Uttar Pradesh drive them away due to poverty.

Cities provide higher wages (Delhi: ₹28,000 for migrants) but also come with increased living expenses.

The 10% contribution of migrants to GDP highlights their importance, yet they endure low wages and challenging conditions as they are often confined to informal employment.

To address this issue, India must create more job opportunities in states like Bihar and enhance protections for migrants in urban areas.

Source

• Forbes Advisor India. (2023). Average salary in India by state. Retrieved September 2, 2025, from https://www.forbesindia.com/article/explainers/average-salary-india/87369/1
• Government of India, Ministry of Home Affairs. (2011). Census of India 2011: Migration tables. Retrieved September 2, 2025, from https://censusindia.gov.in/2011census/migration.html
• Government of India, Ministry of Finance. (2017). Economic Survey 2016-17: Labour migration in India. Retrieved September 2, 2025, from https://www.indiabudget.gov.in/budget2016-17/economicsurvey.php
• Kerala Migration Survey. (2020). Inter-state migrant workers in Kerala: A socio-economic study. Retrieved September 2, 2025, from https://www.kerala.gov.in/migration-survey
• Srivastava, R. (2020). Labour migration in India: Recent trends and patterns. Indian Journal of Labour Economics, 63(4), 935-957. https://doi.org/10.1007/s41027-020-00289-w
• Statista. (2021). Average daily wages for field labor in India, by state and gender.