The Census 2011 estimated the presence of 450 million internal migrants in India, which is an increase of 45% over the Census 2001. As a corollary, the domestic flow of remittances has seen a significant rise. This paper aims to understand how this financial support affects the perceived economic well-being of households in rural India. The analysis shows that the recipient family’s estimation of their economic status improved dramatically after receiving these payments. It discusses the importance of frequency of receiving the remittances in order to understand the impact on the economic sentiment. For households who got continuous payments over the study period, the effect is positive and appears to be stronger.
