​Kerala’s share in the total inward remittances from the Indian diaspora, which dropped significantly in 2020-21 due to reverse migration from the Gulf during the COVID-19 pandemic, is now on a strong recovery path, says the Reserve Bank.

According to an article titled "Changing Dynamics of India’s Remittances – Insights from the Sixth Round of India’s Remittances Survey," RBI said Kerala’s share of inward remittances rose to 19.7 per cent in 2023-24, a sharp increase from 10.2 per cent in 2020-21. India’s total remittances reached $118.7 billion (₹9.88 lakh crore) in 2023-24, more than doubling from $55.6 billion (₹4.63 lakh crore) in 2010-11.

Job losses and travel restrictions during the pandemic had forced many migrant workers to return home, causing a sharp decline in remittance inflows. Kerala’s strong recovery underscores the stabilisation of global employment markets post-pandemic, particularly in the Gulf countries and advanced economies such as the US, UK and Canada.

At the national level, Kerala ranks second in terms of remittance inflows, following Maharashtra, which accounted for 20.5 per cent of total remittances in 2023-24. Tamil Nadu stands third with 10.4 per cent, followed by Telangana (8.1 per cent) and Karnataka (7.7 per cent).

According to State/UT-wise data submitted in the Rajya Sabha, 60,113 people from Kerala obtained Emigration Clearance (EC) between January 1, 2021 and November 19, 2024. Kerala ranks sixth among Indian states in terms of total ECs issued during this period. Uttar Pradesh leads the list with 4,25,851 ECs, followed by Bihar (2,17,335), Rajasthan (87,388), West Bengal (98,822), and Tamil Nadu (78,528). However, these figures only account for the 18 countries that require emigration clearance and do not include advanced economies such as the US, UK, and Canada.

The list of ECR (Emigration Check Required) countries includes Afghanistan, Bahrain, Indonesia, Iraq, Jordan, Kuwait, Lebanon, Libya, Malaysia, Oman, Qatar, Saudi Arabia, Sudan, South Sudan, Syria, Thailand, the UAE, and Yemen.

Shift to non-GCC nations
The RBI article also refers to the Kerala Migration Report 2023, which highlighted a notable rise in the number of students among emigrants from Kerala in 2023. The shift reflects a growing trend of younger individuals migrating overseas, particularly for studies.

The report suggests that there has been a significant shift in student migration patterns, with an increasing preference for non-GCC countries such as Canada, the US, the UK, and Australia.

The United States remained the top source of remittances in India in 2023-24, contributing 27.7per cent, up from 23.4 per cent in 2020-21. The UAE remains the second-largest source at 19.2 per cent, though its share has declined from 26.9 per cent in 2016-17 to 18 per cent in 2020-21 due to the impact of the pandemic.

The United Kingdom’s share increased to 10.8 per cent in 2023-24, up from 6.8 per cent in 2020-21 and 3 per cent in 2016-17. Saudi Arabia accounted for 6.7 per cent of remittances, while Singapore and Canada have emerged as growing sources, contributing 6.6 per cent and 3.8 per cent, respectively.

In recent years, Canada has remained a preferred destination for Indian students pursuing higher education abroad. As of January 2024, out of 13.4 lakh Indian students studying overseas, 32 per cent were enrolled in Canada, followed by the US (25.3 per cent), the UK (13.9 per cent), and Australia (9.2 per cent).

The recovery in remittances in 2023-24 reflects improved employment conditions in both Gulf and advanced economies. Increased demand for skilled professionals and the easing of travel restrictions have contributed to the rebound. However, the long-term trend points to diversification towards high-income countries and a shift from blue-collar to white-collar migration.

More Keralites are now employed in high-paying sectors such as technology, healthcare, and education, particularly in advanced economies. The increasing migration of skilled professionals and students to advanced economies is expected to sustain Kerala’s remittance inflows in the coming years.