Tamil Nadu tops national average in remittances


Tamil Nadu tops national average in remittances [Economy]

  • International remittances (money sent by migrants back home) constituted 14 per cent of Tamil Nadu’s gross state domestic product in 2015, almost three times the national average.
  • Remittances from Indians working overseas stood at $69 billion in 2015, making it the biggest recipient of international remittance.
  • Money coming in constitute 4% of India’s gross domestic product. However, Statewise distribution differs. Remittances in Kerala constitute 36% of SGDP.
  • Inward remittances have positive impact on financial inclusion, poverty and social factors, such as health and education.
  • Kerala and Tamil Nadu used most of the money that came in not just for subsistence and debt repayments, but also for education, healthcare expenses and bank savings.
  • Remittances also lead to women empowerment in Tamil Nadu. A majority of migrant husbands send home money in the name of the wife, who becomes the key decision-maker regarding financial matters (especially those pertaining to savings and spending) as well as other household decisions.