Remittances in Kerala's economy
- Remittances play a crucial role in Kerala's economy by serving as a major source of income.
- Keralites working abroad, particularly in Gulf countries like Saudi Arabia, the UAE, and Qatar, send a substantial portion of their earnings back to their families in Kerala.
- Kerala receives a significant inflow of remittances, which amounts to billions of dollars annually.
- This inflow contributes significantly to the state's Gross Domestic Product (GDP) and overall economic stability.
Remittances as Household Income:
- For many families in Kerala, remittances form a substantial part of their household income.
- These funds are often used to cover daily expenses, including food, education, healthcare, and housing.
Role of Remittances in Investment and Development:
- Some portion of remittances is invested in productive assets, small businesses, and local development projects.
- This contributes to economic diversification and the creation of job opportunities at the local level.
- The Kerala diaspora maintains strong ties with the state, fostering a sense of community and cultural exchange.
- This global network can also open up opportunities for trade and investment.
