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Effects of Domestic Migration in India
March 30 , 2025
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- The migration of labour from low-income states to high income states is resulting in higher inflation in high income States in the South such as Kerala and Tamil Nadu.
- The region wise analysis of retail prices shows that southern states display a higher trend in prices for items like vegetables, cereals and most of the pulses.
- The Northeast and Western regions have had the lowest inflation against higher inflationary trends displayed by Southern and Eastern regions.
- In the post-pandemic period (FY21 to FY25), inflation declined by 3.4% in the NE areas, while in Southern region it declined by 2.6% only.
- Among all 35 states/UTs during the period FY13 and FY25 Tamil Nadu inflation is higher than all India inflation for 9 years out of the last 13 years.
- Gujarat and Punjab have lower inflation than all India inflation for 9 years from the last 13 years
- The share of sales tax collection by states, Southern states hold the highest share of 30%, followed by Northern region.
- Among the States, Kerala clocked the highest CPI inflation rate of 7.3% in Feb, followed by Chhattisgarh 4. 9%.
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