Linking Migration, Diversity and Regional Development in India

Abstract

Diversity is important for cultural and economic factors. Diversity is an inclusive concept and has proven to enhance team performance, foster innovation and be better for overall economic factors. Migration is a continuing phenomenon in India, and each region possesses its own unique culture and skills. Migrants from different places of birth bring their own culture and specific skills which is beneficial for the regional human capital and economies. With the help of the fractionalisation index and panel regression models, the paper finds that diversity, as measured by migration by place of birth has a positive and significant relationship with the income growth of the states. This is consistent with a trend of increased migration to the industrialised or higher GDP states, such as Gujarat, Maharashtra, Tamil Nadu and Karnataka. The study shows that the diversity of people originating from different regions is beneficial for economic progress. This mobility and assimilation of people and cultures will positively affect a region and economy.