Every year, millions from Bihar and Uttar Pradesh (UP) leave their villages to work in cities like Mumbai, Delhi, or abroad in places like Dubai and Qatar. These migrant workers send money back home—known as remittances—which serve as a lifeline for their families and communities.
In 2023, India received over $125 billion in remittances, the highest globally, according to the Reserve Bank of India (RBI). A significant portion flows into Bihar and UP, states with the highest out-migration rates. This money transforms rural economies, supporting households, boosting small businesses, and funding dreams.
Why Do People Migrate from Bihar and UP?
Migration is driven by necessity and aspiration:
- Limited local jobs: Agriculture, the main livelihood, is seasonal and unreliable.
- Higher wages elsewhere: Workers earn 2–3 times more in urban centers or abroad.
- Better opportunities: Families aspire to better education, housing, and healthcare.
Data from the Census and National Sample Survey Office (NSSO) shows that over 30% of Bihar households and 25% of UP households have at least one member working outside their state or country.
The Scale of Remittances
How much money are we talking about?
- Workers in Indian cities send ₹5,000–₹12,000 monthly.
- Those in Gulf countries remit ₹20,000–₹40,000 monthly.
- Collectively, Bihar and UP receive billions of rupees annually.
These funds flow directly to villages, bypassing bureaucratic delays, and create a ripple effect in local economies.
Voices from Bihar and UP
Sunil Yadav, Construction Worker in Delhi
“I earn ₹15,000 a month in Delhi. I send ₹8,000 home to my family in Bihar. With it, my kids attend a private school, and my wife runs a small tailoring business.”
Meena Devi, Shopkeeper in Azamgarh, UP
“Families who receive money from migrants are my best customers. They buy groceries, clothes, and even electronics. My shop depends on their remittances.”
Imran Khan, Migrant in Qatar (from Bihar)
“Living away from my family is tough, but sending ₹30,000 home every month means my parents can afford medicines and my sister’s wedding.”
These stories highlight the emotional and economic weight of remittances, showing how they bridge dreams and reality.
How Remittances Transform Local Economies
Remittances touch every aspect of life in Bihar and UP:
- Daily Needs: Families spend on essentials like food, clothing, and utilities, keeping local shops thriving.
- Education: Money funds private schools, coaching classes, and college fees, paving the way for a brighter future.
- Housing: Brick homes replace mud huts, creating jobs for local masons and laborers.
- Healthcare: Remittances cover hospital visits, medicines, and emergencies.
- Festivals and Weddings: Celebrations like Diwali, Eid, and Chhath Puja are grander, boosting local vendors.
- Small Businesses: From tea stalls to beauty parlors, remittances fuel entrepreneurship.
This influx of cash creates a multiplier effect, where every rupee spent stimulates the local economy.
Challenges of Migration
While remittances are transformative, the life of a migrant isn’t easy:
- Tough working conditions: Long hours in construction or factories with little safety.
- Family separation: Many migrants see their loved ones only once a year.
- No job security: Informal contracts leave workers vulnerable.
- Rising costs: High living expenses in cities reduce what they can send home.
Despite these hardships, migrants persevere, driven by their families’ needs.
The Role of Banks and Government
- Digital banking: Apps and services make transfers faster and safer, with Pradhan Mantri Jan Dhan Yojana (PMJDY) ensuring rural families have bank accounts.
- Skill development: Programs in Bihar and UP train workers for better-paying jobs, especially abroad.
- Policy support: Governments are exploring ways to protect migrants’ rights and improve their working conditions.
These efforts amplify the impact of remittances and ease the burden on workers.
The Future of Remittances in Bihar and UP
Experts predict remittances will remain vital until Bihar and UP develop more local industries and jobs. Investments in infrastructure, education, and small-scale manufacturing could reduce migration over time. For now, these funds are the backbone of rural economies, turning sacrifices into opportunities.
To learn more about how festivals boost local economies, check out our article on Festivals and Economic Growth.
Frequently Asked Questions
1. What are remittances?
Remittances are funds sent by migrant workers to their families in their home state or country.
2. How much do Bihar and UP receive in remittances?
They collectively receive billions of rupees annually, though exact figures vary.
3. How do remittances help rural communities?
They fund essentials, education, housing, healthcare, festivals, and small businesses.
4. What challenges do migrant workers face?
Harsh work conditions, family separation, lack of job security, and high living costs.
5. Can Bihar and UP reduce dependence on remittances?
Yes, by creating local jobs and improving infrastructure, but this will take time.“`