Question

What has been a significant source of income for Kerala, contributing to its economy and development?

• A. Heavy industry
• B. Agricultural exports
• C. Remittances from Keralites working abroad
• D. Tourism

Answer 1

Answer:

C. Remittances from Keralites working abroad

Remittances from Keralites working abroad

• Kerala has a long history of people from the state seeking employment opportunities abroad, particularly in Gulf countries such as Saudi Arabia, the UAE, and Qatar.
• Keralites have been migrating to these regions for decades in search of better job prospects and higher wages.
• Around 3,000,000 Keralites are working abroad, mainly in Persian Gulf; to where migration started with the Gulf Boom
• Therefore the Keralite diaspora working abroad is substantial in number, and many Keralites have established themselves in various professions and industries.
• They work in sectors such as construction, healthcare, IT, hospitality, and more.
• Keralites working abroad send a significant portion of their earnings back to their families in Kerala.
• These remittances are often sent on a regular basis and serve as a crucial source of financial support for families in Kerala.

Economic Impact of these remittances:

• The inflow of remittances into Kerala has a substantial economic impact.
• It contributes to increased household incomes, improved living standards, and enhanced access to education and healthcare for many families in the state.
• Remittances have been used for various developmental purposes, such as building houses, investing in small businesses, and funding education and healthcare expenses.
• They have played a role in reducing poverty and supporting economic stability in the state.
• The influx of remittances has also led to economic diversification, with investments in sectors like real estate and small-scale entrepreneurship.