Gulf remittances have been a critical economic lifeline for certain Indian states, particularly Kerala, which relies heavily on money transfers from its large diaspora working in Gulf countries. However, these remittances have sharply declined since February, affecting Kerala, West Bengal, Uttar Pradesh, and Tamil Nadu to varying degrees. This economic vulnerability is compounded by political factors, as states with strong leftist political representation like Kerala and West Bengal have historically faced challenges in developing domestic industries such as pharmaceuticals, automobiles, and construction, making them more dependent on external remittance flows rather than internal economic growth.
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யாரையும் வளர விடாது இந்த கம்யூனிஸ்ட்! | Dr. J S RajkumarAdded:
I want to start by saying India has more people working in the Gulf than any other country. We have 10 million 1 crore Indians are working in the Gulf countries. 1 crore.
And two or three states, especially Kerala, Uttar Pradesh, West Bengal, you will find so many people because I used to just chat. They would have cars there. You would just chat with people.
The remittances from the Gulf countries are huge.
>> [snorts] >> Now, I want you to look at this therefore the economic perspective. We track it. So, if you look at Kerala, do they have Hyundai? No. Nothing. Do they have large pharmaceutical companies like Gujarat? Nothing. Do they have automobile companies like Tamil Nadu?
Nothing. Do they have huge construction firms? Nothing. Because you know in Kerala the guy the Communist Party will never allow anybody to grow. That's classic of Communist Kerala and West Bengal. And I fear sometimes that our new Chief Minister, we have a very strong leftist representation. It's a different issue.
So, the money that Kerala makes, billions of dollars come in only as Gulf remittances. The janitors, the drivers, the waiters, the cooks, the Sabarimala all the Keralites, the lower end guys.
And now they're being replaced by West Bengal. And that money is not coming in to Kerala. The remittances from the Gulf have sharply dropped from February. West Bengal, Uttar Pradesh, large part of Kerala, to a smaller extent, but Tamil Nadu has been hit.
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