The Business & Management Review, Volume 5 Number 4 January 2015

Migration: causes and effects

Key Words
Migration, brain drain, brain gain, remittances, globalization.

Abstract
Migration is movement of people between regions or countries. It is the process of moving from
the use of one operating environment to other operating environment that is, in most cases, is thought to
be a better one. Immigration and emigration are usually reserved for migration into and out of countries
respectively. Migration may be temporary, with the intention of returning to the country of origin in the
future or permanent or migrants may not have decided between these alternatives at the time of migration.
In this age of globalization, migration is a very common feature. The main causes of Migration in India
are huge population, rigid educational system, lack of good job opportunities etc. Migration results in to
brain drain, talent shortage, reverse brain drain, remittances etc. Migration can be taken as one of the
positive factors in the era of globalization which helps in the free flow and exchange of ideas, commodities,
and technology along with talents. It has its own positives and negatives. In Indian context, as of today,
migration has resulted in to brain circulation. The present paper is an attempt to examine the causes and
effects of Migration in India.

Introduction
Migration is movement of people between regions or countries. It is the process of
moving from the use of one operating environment to other operating environment that is, in
most cases, is thought to be a better one. Immigration and emigration are usually reserved for
migration into and out of countries respectively. Migration may be temporary, with the
intention of returning to the country of origin in the future, or permanent or migrants may not
have decided between these alternatives at the time of migration.
India has become a very prominent source of skilled labour migration. The flow of
Indian professionals is towards the United States, Canada, the United Kingdom and many other
similar destinations. In 2010, India with an estimated stock of 11.4 million emigrants was the
second emigration country in the world, behind Mexico (11.9 million). An important place in the
flows of well-trained Indian migrants is taken by Indian students. India, for example, accounts
for 5.5% of the 2.8 million students studying outside their home-country. After China (421,100),
the country sends the greatest number of students abroad 153,300.
The ex-prime minister of India, Shri. Atal Bihari Vajpayee’s address to the Global
Organisation of Persons of Indian Origin (GOPIO) at New Delhi in January, 2001 reflects the
perception of the Indian polity towards the highly qualified and experienced emigrants of India
settled abroad. Expressing the pride of the Indian nation on the legendary success stories of
Indian entrepreneurs abroad, he is reported to have said “from hi-tech chip laboratories to curry
restaurants, from renowned hospitals to famous educational institutions, from well known
research centre to leading think-tanks everywhere you find an Indian who has overcome all
odds to establish himself through skilled education and hard work”.

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Objective of Study
In this age of globalization, migration is a very common feature. The present paper is an
attempt to examine the causes and effects of Migration in India.
Research Methodology
The study is purely based on secondary data. The secondary data were collected from
different sources such as Professional Magazines, Reference Books, Newspapers, Journals and
published reports of World Bank, UNESCO, ministry of MHRD, ministry of Overseas Affairs
etc. The collected data was complied and analyzed for the purpose of the study.
Causes of Migration
Migration is affected by push and pulls factors. Push factors include lack of employment
opportunities and fears of disorder or of persecution on grounds of race, religion or politics in
the areas people live. Pull factors include favourable employment opportunities, good health
and educational facilities, public order and freedom, and a favourable climate, particularly for
the retirement in the areas people move to. Some of the major causes as highlighted by the
present paper are presented below:
 Huge Population: India is known for its huge demographic potential. It has huge
population which is educated, English speaking, computer savvy and efficient. This is
what is required by developed economies because they lack in terms of working
population. Therefore, they attract Indian skilled labours by offering lucrative packages.
India on other hand fails to provide good working opportunities to this population. This
results in migration of skilled labours.
 Rigid Education System: One of the important reasons why many students migrate to
developed nations is for higher education, because Indian educational system lacks the
flexibility which is the need of time. It offers rigid, stereotyped and traditional courses
with less or no scope of shifting or changes across the subjects, streams etc. People follow
a fixed mindset in opting for subjects, courses and careers. This results in huge demand
for some particular type of courses and professions. There is huge commercialization of
these courses which results in mushrooming of institutes offering similar kind of courses;
this further dilutes the results and quality. The system lacks the format of
standardization. Government needs to take concrete measures to amalgamate Indian
education system with global to achieve uniformity and standardization and this is what
is required today to meet global manpower demand. There is a need to change the
attitude of students, parents also by counseling, suggestions and guidance.
 Educated Unemployment: As of today status of higher education in India in the year
2010-11 is: 523 universities, 33023 colleges, 11809 AICTE technical institution, 200
distance teaching universities/institutions, 169.75 (in lakhs) enrollment in universities
and colleges, 37.45 (in lakhs) enrollment in open distance learning, 18.56 (lakhs)
enrollment in post graduation diplomas, 10364 AICTE approved technical programmes
and 26.15 lakhs intake in AICTE approved technical programmes are there. This shows
the level of educated youth is high in India. By 2020, India will become the world’s
largest pool of young people estimated at 820 million as compared to the present number
of 400 million. In contrast there is lack of opportunities for job. The Indian employment
system is affected by the beurocratic policies and framework especially at the
government or public sector openings. This also leads to migration of qualified people.
 Globalisation: In today’s globalised and liberalized era there is no restriction on the
movement of capital, goods, technology and information. In this context every country is
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trying to make a distinguished position in the World market. To achieve this well trained
man power is a must. In the fight for market shares and under the pressure of growing
global competitiveness, the developed countries look for the best and brightest minds to
win this battle. With a well-educated and large workforce India is an important provider
of highly-skilled specialists for many developed economies including EU countries,
which have become increasingly popular destinations.
 Increasing Consumerism: Consumerism means the growing wants and needs of an
individual for goods and services. India is one of the largest and fastest growing
economies in the world. The consumer’s standard of living is improving and hence his
needs are also increasing. Consumerism is justified in today’s age of globalization. To
fulfill this ever increasing and ever changing needs and wants people look for better paid
jobs which will provide better standard of living. Earning in foreign currencies makes it
possible.
 Other factors: Many of the social, economic and political factors also lead to migration.
Political instability, red-tapeism, poverty, economic depression, political chaos, rising
crime, crises and conflicts, corruption, family reasons, economic depression, low
educational standards and inadequate infrastructure are some of the factors which create
insecurity amongst the population that makes them leave their place of origin and
migrate to better place. The host country, on the other hand, offers rich opportunities,
political stability and freedom, a developed economy and better living conditions that
attract talent. At the individual level, family influences, personal preferences, career
ambitions and other motivating factors can be considered.
Effects of Migration
 Brain drain: Human capital flight is an Economics term equivalent to the Sociology
term, brain drain, which refers to the emigration of intelligent, well-educated
individuals to somewhere for better pay or conditions, causing the place they came from
to lose those skilled people, or “brains”. Brain drain occurs when scientists, engineers,
doctors, IT- professionals and other intellectuals migrate to another country for higher
studies, to undertake research activities, to get better job and work experiences which
they are not getting from their country of origin. India is a very prominent source for
supply of professionals. Elites and highly qualified professionals from India are placed
all over the World. India is very rich in resources including human resources. India
needs to put these resources to optimum utilization to bring amazing results for the
country. The intellectuals which India looses every year can help in the effective
utilisation of our natural resources. Government needs to take timely and effective
efforts to bring these resources back to India.
 Talent shortage: Migration results in to talent shortage in the home country. The
educated crowd instead of serving their own country prefers to work for the developed
nations for the sake of better pay and standard of living or any other reason. This is
evident in India also especially in the field of medical services. Rural areas face acute
shortage of medical practitioners. Also, there is huge demand of IT professionals in
Telecom software companies which is unfulfilled. Most of the available professionals
prefer to go to abroad to meet the requirements of software companies abroad. This
results in the crunch for professionals in these sectors.
 Brain gain: It can be generally defined as a form of brain drain where human capital
moves in reverse from the developed countries to the developing ones. These migrants
may accumulate savings; develop skills which could later be utilized in their home

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countries. The dot-com bubble, sub-prime crises, 9/11 attack, attack on students in
Australia and related issues; in contrast the resilience shown by India made many of
these migrants come back home. The expertise of these talented migrants can be used for
the establishment and management of enterprises. Brain gain also results in increased
capital flows in to the country of origin, which can be used for the better utilization of
resources. The returning entrepreneurs can also help India in making a distinguished
position in the international markets.
 Cross flow of knowledge and information: Thanks to the Indian Diaspora they have
become a means for the exchange of thoughts, skills, ideas and practices across the
nations. This has helped India becoming an innovative centre especially for IT
development. Naturally these resources contributed to the development process in India.
In addition to the direct financial advantage Indian Diaspora specially highly qualified
ones bring other benefits such as image improvement for the country, knowledge
transfers, access to new markets, business networks.
 Financial Resources: Migration results in remittances. Indians who are earning abroad in
foreign currencies send back money home for their families and to fulfill their liabilities.
They also travel to and forth and along with them they bring foreign earnings to their
country. Estimated at 30 million with a presence in 189 countries, the Indian Diaspora
produces an annual economic income of about $ 400 billion, almost 30 percent of India’s
GDP. There has been a steady increase in remittances from US$ 15.8 billion in 2001-02 to
US$ 70 billion in 2011-12. This is highly encouraging and shows the significant aspect of
brain gain to our economy. Indian Diaspora has also resulted in increased demand for
Indian products in foreign market. This has further helped in the increased consumption
of various products of Indian origin which now is equally liked and demanded by Indian
and foreign markets. Indians settled abroad are now investing in various businesses in
the form of FDI. This has helped in establishing a business network which helps in
facilitating capital circulation between India and other countries.
Conclusion
Many of young Indian scientists and technicians are working very hard to develop our
country. It’s the hard work and devotion of its human talent that India today could achieved the
nuclear status as well as become a space power. There is no limit to development and progress,
India needs the talent of all the Indian scientists and engineers settled abroad. They can play an
important role in future progress of our country. Migration can be taken as one of the positive
factors in the era of globalization which helps in the free flow and exchange of ideas,
commodities, and technology along with talents. It has its own positives and negatives. In
Indian context, as of today, migration has resulted in to brain circulation. The migrants of
yesterday are coming back and are creating new avenue for economic development. The
situation is improving in IT, pharmaceuticals, bio-tech, and chemical field. The need of the time
is to develop effective policy framework to attract the migrants which can then create substantial
benefits for the nation.
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