Kerala State

Economy

Kerala's economy depends significantly on emigrants working in foreign countries, mainly in the Arab states of the Persian Gulf, and the remittances annually contribute more than a fifth of GSDP. The state witnessed significant emigration during the Gulf Boom of the 1970s and early 1980s. In 2012, Kerala still received the highest remittances of all states: US$11.3 billion, which was nearly 16% of the US$71 billion remittances to the country. In 2015, NRI deposits in Kerala have soared to over ₹1 lakh crore (US$10 billion), amounting to one-sixth of all the money deposited in NRI accounts, which comes to about ₹7 lakh crore (US$73 billion). Malappuram district has the highest proportion of emigrant households in state. A study commissioned by the Kerala State Planning Board, suggested that the state look for other reliable sources of income, instead of relying on remittances to finance its expenditure.