Punjab's Economic Crisis: The Real Reason Behind Rising Illegal Immigration to the U.S.

Photo: Hindustan Times

The Shackled Dreams

In February 2025, multiple deportation flights returned undocumented Indian immigrants — primarily from Punjab — to Amritsar. Having undertaken perilous "dunki" journeys through Central America to enter the U.S., they were detained and flown back, many in shackles — a detail that sparked outrage in India's Parliament. The episode reignited debate over U.S. immigration policy under President Donald Trump and the economic crisis in Punjab driving such migration.

Trump's second administration intensified deportations from day one, including the use of military C-17 aircraft. India's government cooperated in repatriating its citizens, without major diplomatic confrontation — a pragmatic balancing of international relations with domestic responsibility.

The root cause pushing so many Punjabis toward illegal entry lies in the region's economic distress. Once celebrated as India's agricultural heartland, Punjab now grapples with declining farm incomes, mounting debt, and high unemployment. The economic fabric has eroded, leaving youth disillusioned and desperate for better prospects abroad.

Political Dynamics: The U.S.-India Angle

Trump has made illegal immigration a centerpiece of his administration — intensifying border security, increasing deportations, and tightening asylum policies.

Unlike some countries that resist repatriation, Prime Minister Narendra Modi's government has actively cooperated with the U.S. in taking back deported citizens. India has consistently said illegal immigration is not encouraged. While Modi celebrates the success of Indian expatriates in tech and business, his government extends no such welcome to those who migrate illegally. Programs like Make in India and Production-Linked Incentive (PLI) schemes have done little for Punjab's unemployment crisis: the state's unemployment rate hovered around 7% in 2023, above the national average, and farm distress has worsened with shrinking landholdings and rising debt. The lack of well-paying jobs fuels illegal migration, particularly among Punjabi youth.

Opposition parties in Punjab, including AAP and Congress, blame the BJP-led central government for failing to create jobs; the BJP counters that state-level mismanagement is to blame. The migration crisis has also been seized upon by various political actors in Punjab to score points — adding another layer of complexity.

With Trump doubling down on deportations and Modi showing no resistance to accepting returnees, the future looks bleak for undocumented Indian migrants. Unless Punjab's economic conditions improve, illegal migration — and the cycle of deportation — will continue.

A Deportee's Lament

As one deported migrant said upon arriving in Amritsar: "If there were jobs and money in Punjab, why would we have left in the first place?" That sentence captures the harsh reality — economic hardship compelling people to seek uncertain futures abroad, only to meet stringent immigration policies and forced returns.

Originally published February 2025.