Odisha trains and nurtures its young population, only to see them build the economies of other states
Pallavi Das
From Surat’s diamond workshops to Kerala’s fishing docks, and from Bengaluru’s gig platforms to Hyderabad’s construction belts—there’s one constant across India’s vast informal economy: the quiet, tireless presence of Odia youth. Welders, loaders, delivery agents, carpenters, cooks, and caretakers—they are largely invisible in national policy and underrepresented in state planning. Yet, they form a powerful migrant multiplier, silently driving India’s unorganised economy, even as Odisha continues to lose its productive workforce.
Odisha: Exporting Labour, Not Just Resources
Odisha today is not just a resource-exporting state. It has become one of India’s largest exporters of informal labour. According to the Ministry of Labour & Employment’s E-Shram portal, over 1.1 crore informal workers from Odisha have registered—the third-highest among all states as of February 2024. A significant number of these are employed outside the state in jobs that lack social security, contracts, or safety nets.
The Periodic Labour Force Survey (2022–23) shows that more than 33% of Odia males aged 18–35 are absent from the local workforce—an indirect but compelling indicator of mass out-migration. Over 92% of these migrants are employed in informal sectors, devoid of employment protections.
A 2023 study by the Centre for Migration and Inclusive Development estimates that Odisha sends nearly 1.7 million seasonal and semi-permanent workers annually to other states. Most find employment in:
Textile and polishing units in Gujarat
Fish processing and hospitality in Kerala
Construction and metro projects in Telangana and Karnataka
These sectors rely on unregulated migrant labour, and Odia workers have become vital to their operations.
Odisha’s Hidden Subsidy to the Nation
Migration in Odisha is not merely about individual aspiration—it reflects a systemic exclusion from formal employment. Odisha’s economy posted a healthy 7.8% GSDP growth in 2023–24, yet manufacturing employment has remained below 10% for over a decade (State Economic Survey 2024). Investment has favoured capital-intensive sectors with low job absorption, while labour-intensive industries have lagged.
The outcome? Odisha trains and nurtures its young population, only to see them build the economies of other states. While Gujarat, Telangana, and Kerala benefit from cheap and flexible labour, Odisha bears the cost of education, healthcare, and skill development. This is an invisible inter-state economic transfer. Unlike resource-exporting states that receive royalties, labour-exporting states receive nothing—neither compensation nor structured fiscal support.
Trapped in Informality
Most Odia migrants lack formal contracts or social protections. EPFO data reveals that only 12% of Odia migrants working outside the state are enrolled in social security schemes. The rest remain:
Underpaid: Often earning 30–40% less than local counterparts
Overworked: Working 10–12 hours daily without proper overtime
Unprotected: With no health insurance, accident cover, or legal aid
The economic outcomes are modest. Remittances are typically used for family consumption—not investments or long-term mobility. Yet, Odisha lacks a formal mechanism to track remittances or to channel them into local development or credit systems.
Policy Blind Spots
Despite investing in welfare and infrastructure, Odisha’s approach to migration remains fragmented. While the Odisha Migration Support Centre in Tirupur—a collaboration with Tata Trusts—has offered vital help, it remains an isolated model.
There is no state-wide migration policy. Odisha currently lacks:
A skills pipeline tailored to national labour market demand
Legal aid or grievance redress systems for migrants
A returnee support policy for reintegration or reskilling
Any fiscal claim or coordination mechanism with destination states
States like Kerala (which has formal returnee packages) and Jharkhand (with real-time digital migrant registries) offer models Odisha can learn from.
From Leakage to Leverage
Odia migrants are more than workers—they are economic agents. Recognising this requires Odisha to rethink its strategy. A future-ready approach could include:
A Migration and Labour Policy Cell under the Planning & Convergence Department
A Migrant Welfare Fund, co-financed through CSR by destination states and industries
Skill-export programs for trades like logistics, hospitality, and construction
A Remittance Integration Index to link inflows to district-level financial services
Odia youth power India’s informal economy from the margins. If they remain invisible in public policy, Odisha will continue to suffer a “leakage economy”—where talent exits and returns are minimal.
But with structural recognition and focused investment, Odisha can convert its migrant multiplier into a strategic growth engine—retaining dignity for its people while asserting its rightful stake in India’s economic rise.
(The writer is a PhD Scholar at the Central University of Gujarat. Views are personal)
