Role of Gulf Migration and Remittances in Kerala's Socio-Economic Development
Historical Context and the 'Gulf Boom'
The phenomenon of Gulf migration from Kerala gained significant momentum during the 1970s and 1980s, often referred to as the 'Gulf Boom'. This period saw a massive outflow of Keralites, primarily to the Middle East, seeking employment opportunities.
The initial surge in migration was largely driven by the oil price hikes of the 1970s, which fueled an economic boom in the Gulf countries and created a high demand for expatriate labor.
This historical context indicates that the volume of remittances to Kerala became substantial well before the turn of the millennium, establishing their economic importance decades earlier.
Significant Socio-Economic Impact
Foreign remittances have played an unparalleled and transformative role in the socio-economic development of Kerala. They are considered a foundational element of the unique 'Kerala Model of Development'.
These remittances have contributed substantially to the Gross State Domestic Product (GSDP) of Kerala, boosting per capita income and significantly improving the overall economic well-being and living standards of the state's population.
Kerala consistently ranks among the top Indian states in terms of remittance receipts, often accounting for a significant share of India's total inbound remittances.
