Impacts of Migration and Remittances on Rural-Urban Disparities

The narrowing gap in per capita spending between rural and urban India suggests changes in economic dynamics. One contributing factor could be the migration of workers to urban areas, leading to increased remittances back to rural regions. These remittances, estimated to constitute up to 30% of rural expenditure, play a crucial role in poverty reduction, investment in businesses, and access to healthcare and education. While this trend signifies positive outcomes, it also underscores the need for policymakers to address income disparities and formulate strategies to support rural populations effectively.