Question

Which of the following best describes the role of remittances in Kerala's economy?

• A. They have primarily financed the development of large-scale manufacturing industries, making Kerala an industrial powerhouse.
• B. They serve as the primary source of state government revenue, directly funding all major public infrastructure projects and social welfare schemes.
• C. They have led to a significant decline in entrepreneurial activities and a shift away from the service sector towards subsistence agriculture.
• D. They have boosted consumption, increased bank deposits, and fueled a real estate boom.

Answer 1

Answer:

D. They have boosted consumption, increased bank deposits, and fueled a real estate boom.

• Remittances have had a profound impact, significantly increasing household consumption, leading to a rise in bank deposits, and driving a boom in the construction and real estate sectors.