Question

Which of the following statements accurately describe the common expenditure patterns observed among migrants in Kerala?

1. Purchase of sophisticated consumer durables is a main pattern of expenditure.
2. Construction of luxurious houses is a common expenditure pattern.
3. A significant portion of their money is spent on buying agricultural land for large-scale farming.
4. Purchasing land as a form of permanent investment is a notable trend among migrants.

• A. 1, 3
• B. 1, 2, 4
• C. 4 only
• D. 2 only

Answer 1

Answer:

B. 1, 2, 4

Common Expenditure Patterns:

• Purchase of Sophisticated Consumer Durables: Migrants often prioritize the acquisition of high-value consumer goods such as electronics, automobiles, and luxury appliances. This trend is driven by increased disposable income and a desire to improve living standards, reflecting a shift towards a more consumerist society in Kerala.

• Construction of Luxurious Houses: A highly visible and significant expenditure pattern is the construction or renovation of large, often opulent, houses. This is a major investment for migrants, serving as both a symbol of their success abroad and a permanent asset for their families. It has fueled a significant boom in Kerala's real estate and construction sectors.

• Purchasing Land as a Form of Permanent Investment: Land acquisition, particularly residential plots, is a deeply ingrained and preferred investment strategy among Keralite migrants. Land is viewed as a secure asset that consistently appreciates in value, offering long-term financial security and a sense of belonging or 'rootedness' to their home state.

• Why "Buying agricultural land for large-scale farming" is less common: While some migrants might invest in small plots for family use, large-scale commercial agricultural farming is generally not a primary expenditure pattern. This is often due to a lack of expertise, the highly competitive and often less profitable nature of large-scale farming in Kerala, and the preference for less labor-intensive, more liquid investments or residential assets.

Contextual Background and Impact on Kerala:

• Remittances as a Pillar of Kerala's Economy: Kerala has historically been a major recipient of remittances, primarily from the Gulf Cooperation Council (GCC) countries. These remittances are a crucial component of the state's economy, significantly contributing to its Gross State Domestic Product (GSDP) and household incomes.

• The "Kerala Model of Development": The inflow of remittances has played a vital role in sustaining aspects of the "Kerala Model," characterized by high social development indicators (literacy, healthcare) despite relatively low industrialization. Remittances enable higher consumption, investment in housing, and education.

Socio-Economic Ramifications:

• The influx of migrant money has led to increased consumerism, higher living standards, and a significant real estate boom, particularly in the housing sector.

• It has also contributed to inflation, especially in land prices, making land less accessible for non-migrant populations.

• The expenditure patterns reflect a strong desire for social mobility and asset creation among migrant families.

• Changing Migration Trends: While Gulf migration remains dominant, there's a growing trend of migration to Western countries. The expenditure patterns, however, largely remain centered around housing, land, and improving family living standards.