Role of debt in overseas labour migration in India

The Population Council, in partnership with the Global Fund to End Modern Slavery and the Norwegian Agency for Development Cooperation, undertook a multicomponent study to better understand the relationship between debt and overseas labor migration from India. The study shed light on: levels and patterns of household indebtedness among migrant households, with a special focus on households with overseas migrants; cost of overseas labor migration from India and the role of debt in financing overseas migration; role of debt in migration-related decisions; differences in work-related choices and experiences and financial vulnerabilities migrant workers experienced by household indebtedness; and migrant workers’ perceptions about financial products that can potentially reduce their financial vulnerabilities. This report describes the levels and patterns of household indebtedness and socio-demographic differentials in indebted international migrant households. It sheds light on costs incurred for overseas labor migration and the role of debt in financing migration, migration-related decisions, work-related choices and experiences, and financial vulnerabilities faced in India and overseas. A description of financial products that can potentially reduce the financial vulnerabilities of overseas labor migrants is included, as are recommendations for programs and research.