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What has been the MOST significant impact of remittances in Kerala?

AReducing dependence on agriculture

BStrengthening state government revenues

CCreating large-scale manufacturing jobs

DMaking Kerala's economy export-led

Answer:

A. Reducing dependence on agriculture

Read Explanation:

  • Remittances have allowed many families in Kerala to move away from agriculture as their primary source of income, with significant investment directed toward improving household living standards, health, and education.

  • The inflow has not notably led to large-scale manufacturing or made Kerala’s economy export-led; instead, it created a service-driven economy and increased per capita income.

  • While remittances are many times higher than state government revenues, their most direct effect has been on household consumption, reducing dependence on traditional sectors like agriculture.


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