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.