Why are people leaving Punjab by Lavjit Sra

1. Introduction

Punjab, once known for its flourishing agrarian economy, has experienced significant outmigration in recent years. The state, historically a hub of agriculture and entrepreneurship, is witnessing increasing numbers of people, particularly youth, leaving in search of better opportunities. This report delves into the causes behind this exodus, the destinations of these migrants, and the reasons driving this movement, supported by data and statistics.

2. Reasons for Outmigration

2.1. Agricultural Distress

• Declining Agricultural Income: Punjab, a major agricultural state, has seen a steady decline in farm incomes. Farmers are heavily reliant on traditional crops like wheat and rice, which have low profit margins. According to a 2019 report by the NITI Aayog, Punjab's farmers' income grew by just 3.2% annually between 2002 and 2016, while production costs rose significantly.

• Debt Burden: The state's farmers are caught in a vicious cycle of debt. A 2021 survey by the Punjab Agriculture University found that 89% of farmers in the state are under debt, with average debt per household around ₹6.05 lakh. This financial strain forces many to abandon agriculture altogether.

  
  

2.2. Lack of Employment Opportunities

• Unemployment Rate: Punjab's unemployment rate, especially among the youth, is among the highest in India. In 2023, the Centre for Monitoring Indian Economy (CMIE) reported an unemployment rate of over 7.6% in the state, above the national average of 7.1%. For educated youth, this figure is even higher, reaching nearly 20%.

• Decline in Industrial Sector: Punjab's industrial sector has been stagnating for decades. Due to outdated infrastructure, power shortages, and lack of innovation, industries have failed to grow. According to the Punjab Economic Survey (2022-2023), the state's manufacturing sector contributes only about 16.5% to the Gross State Domestic Product (GSDP), a decline from the 1990s.

  
  

2.3. Education and Skill Mismatch

• Preference for Education Abroad: Many students opt to study abroad due to the lack of quality educational institutions within the state and the perception that foreign degrees lead to better job prospects. A 2021 survey by the Ministry of External Affairs (MEA) found that nearly 1.35 lakh students from Punjab went abroad for higher studies.

• Skill Mismatch: A mismatch between the skills imparted by educational institutions in Punjab and the demands of the global job market leaves many graduates unemployed or underemployed.

  
  

2.4. Drug Abuse and Social Problems

• Substance Abuse Crisis: Punjab is grappling with a severe drug addiction problem. According to a 2018 study by the Postgraduate Institute of Medical Education and Research (PGIMER), nearly 2.7 million people in Punjab were affected by drug abuse, particularly opioids. This has not only harmed the state's workforce but has also pushed many families to migrate in search of healthier environments and better prospects.

  
  

3. Where Are People Migrating To?

3.1. International Migration

• Canada: Canada is the most popular destination for Punjabi migrants, especially for students and skilled professionals. The Immigration, Refugees and Citizenship Canada (IRCC) reported that over 85,000 Punjabis moved to Canada in 2022, primarily through student visas and permanent residency programs like Express Entry.

• Australia: Australia is another favored destination. According to the Australian Bureau of Statistics (ABS), the number of Punjabis living in Australia rose by 12% between 2020 and 2023, with many migrating for higher education and skilled work opportunities.

• Other Countries: Countries like the UK, New Zealand, and the United States also see a steady influx of migrants from Punjab, especially those seeking better education, jobs, or quality of life.

  
  

3.2. Domestic Migration

• Urban Centers in India: Within India, there is a significant migration towards metropolitan cities like Delhi, Mumbai, and Bengaluru. These cities offer better employment prospects in sectors such as IT, finance, and real estate. A 2022 report by the National Sample Survey Office (NSSO) indicated that around 2.3 lakh people from Punjab moved to other Indian cities for employment in the last five years.

• Southern and Western States: People from Punjab also seek employment in southern states like Karnataka and western states like Maharashtra and Gujarat, driven by opportunities in the technology and manufacturing sectors.

  
  

4. Motivations Behind Migration

4.1. Economic Opportunities

• The primary motivation behind migration is economic. Punjabis, especially the younger generation, are migrating in pursuit of better job opportunities and higher incomes. Canada, for example, offers higher-paying jobs, with an average wage rate significantly higher than in India.

  
  

4.2. Educational Prospects

• The trend of seeking education abroad is a significant factor. According to the Reserve Bank of India (RBI), Indians spent a record $10 billion on overseas education in 2022, with Punjab contributing a large share.

  
  

4.3. Social Mobility and Better Quality of Life

• The promise of improved social status, healthcare, education, and overall quality of life attracts many to countries like Canada, Australia, and the US, where there are strong Punjabi communities providing support systems.

  
  

5. Demographic Implications for Punjab

5.1. Aging Population

• As young people continue to leave the state, Punjab's population is aging. The Economic Survey of Punjab (2022) predicts that by 2030, nearly 25% of the state's population will be over 60 years of age, exacerbating the economic and social challenges posed by a shrinking workforce.

  
  

5.2. Decline in Skilled Workforce

• The migration of skilled workers and professionals abroad has created a gap in Punjab's economy, particularly in the healthcare, education, and technology sectors. The loss of skilled professionals is making it harder for the state to develop its industrial and service sectors.

  
  

6. Conclusion

The outmigration from Punjab is driven by a combination of economic stagnation, agricultural distress, unemployment, and social issues like substance abuse. The allure of better educational opportunities, employment prospects, and quality of life abroad has led to a significant exodus of the youth. This has far-reaching demographic and economic implications for the state, which needs comprehensive policy interventions to address the root causes and offer better prospects for its people within the state.

The destinations for these migrants are primarily international, with Canada and Australia being the top choices. Within India, metropolitan areas and industrial hubs attract domestic migrants. Addressing this outflow will require a focus on job creation, education reform, agricultural support, and tackling social issues like drug abuse.

7. Key Statistics

• Agricultural Debt: 89% of farmers in Punjab are under debt, with average debt per household around ₹6.05 lakh.

• Unemployment Rate: 7.6% in Punjab as of 2023, with youth unemployment reaching 20%.

• Students Abroad: 1.35 lakh Punjabi students went abroad for studies in 2021.

• Drug Abuse: 2.7 million people in Punjab are affected by drug abuse.

• Migration to Canada (2022): 85,000 Punjabis migrated to Canada.