Interstate migrants from less developed states seek better livelihoods in more developed ones, yet encounter challenges such as loss of state benefits and workplace mistreatment. Drawing data from the Indian Census of 1991, 2001, and 2011, this paper examines interstate outmigration in India and the challenges faced by migrants in their destination areas. The results revealed that low-income states such as Uttar Pradesh, Bihar, Rajasthan, and Odisha are among the top migratory states in the country. This result aligns with developmental theories, which believe that migration helps both sources and destination areas through optimal allocation of factors of production. Further, an analysis of female outmigration for economic reasons revealed disparities between the top female outmigratory states and total outmigratory states. Hence, it can be inferred that female interstate migration for economic reasons is not simply an association with their male counterparts. The paper then highlights common problems faced by migrants at destination points and underscores the 2020 migrant crises that the country experienced due to lockdowns amid the COVID-19 pandemic. In conclusion, by analyzing the existing policy measures of the government, the study proposes short-term (also to address current migrant crises) and long-term policy measures to mitigate challenges associated with outmigration.