This paper is an earnest effort to develop a coherent theoretical migration model by embedding the dynamics of urban economics, ignored by the celebrated migration models such as Harris–Todaro model of migration. The principal motivation behind the composition is the eruption of the COVID-19 global pandemics, which has forced migrant labours (the engine of a globalized economic system) to shift from the urban areas to their origin. This migration crisis has put a serious challenge for the revitalization of the city economy in the post lockdown period. Further, this raises the question can the city provides the migrants better opportunities and benefits to get them to return? In contrast to standard migration models that attempted to limit the migration into the cities, our new theoretical perspective highlights the importance of agglomeration economies, urban informal sector and the development of core urban infrastructure to catalyse agglomeration externalities in the process of urban development and accommodating rural–urban migrants. The presentation of urban political economy into the theoretical account of migration leads to the importance of policies to augment agglomeration economies. These include the provision of infrastructure and affordable housing and mitigate congestion diseconomies in the form of sprawl, slums, poverty, traffic bottlenecks and so forth. Stopping migration or wage subsidy to the urban producer is not only unrealistic but also a myopic solution. On the contrary, cities should be prepared with planning, financing and governance mechanism to create the infrastructure needed by employment-generating activities, catalysing agglomeration-led and knowledge-powered growth. In the end, our model suggests any approach to deal with urbanization issues in India must bring into account the critical part played by migrants-urban poor and address their needs while benefitting rural areas. The migrants-urban poor do not need charity. They need to be recognised as partners in the wealth creation process of cities and deserve ‘right to the city’ on their merit. While markets have failed them in the past, governments have also not catered to their needs. The urban planning and governance processes which failed to recognise the ‘location’ and ‘access’ of the poor urban migrants need to be reformed.
COVID-19 crisis and urbanization, migration and inclusive city policies in India: A new theoretical framework