This Article is From Apr 30, 2018

Remittances Rising, But Falling Migration Concern For States Like Kerala

Experts have predicted at least a 10 per cent decline in remittances to Kerala, the state which for decades has received the highest remittances in India

Change in work policy in Saudi Arabia has affected workers from Kerala

Thiruvananthapuram: In Kerala's Thiruvananthapuram, 44-year-old Ameer Hamza, the only breadwinner for his family of five, is struggling to make ends meet for his family. He worked in Saudi Arabia for eight years as a migrant labourer, but was forced to return to Kerala this year, after the revamped Saudi Nationalisation Scheme was implemented -- a programme that focuses on employing Saudi citizens in private firms.

Ameer Hamza says he was forced to return without his six-month wages, or even the promised bonus -- over Rs 1 lakh. He has a loan of Rs 4 lakh to pay off.

"I took a loan from here and went to Saudi. I tolerated all the tough times there for my family. But I wasn't even been paid on time. I was packed off after their new law was implemented, without my wages. We as a family are now in deep trouble," Ameer Hamza says.

Though India, according to the World Bank, has seen an increase in remittances by 9.9 per cent after two consecutive years of decline, topping the global list on highest remittances received, there is worry looming at large for states like Kerala.

Experts have predicted at least a 10 per cent decline in remittances to Kerala, the state which for decades has received the highest remittances in India, valuing at around 36 per cent of the state income itself.

The reason, experts say, is reverse migration and decreasing trend in migration toward Gulf countries, worsened by declining oil prices and nationalisation policies of several Gulf countries.

Beyond the figures of remittances, thousands of families are struggling with the change in migration trends.

Sayeed Ali and four of his brothers, all in their early thirties, returned from the Gulf this year, unhappy with the wages. They don't want to return.

"Gulf is not what it used to be. First, we are told our pay will increase gradually, but we know it will not increase by even a paisa there now," says Sayeed Ali.

At least 2.54 million households are managed by remittances in Kerala, data shows. One person supports almost close to four people in the state. "In that case you can imagine that one-third of households in Kerala are having meals because of remittances. The current trend very clearly indicates that there is going to be a decline in migration."

"Our study for government of Kerala for 2018 is underway. And the way in which gulf migration and remittances are declining, Kerala needs to be well prepared."

While the Kerala government is awaiting a detailed survey on remittances and migration in 2018, Africa seems to be, strategically, their big new draw.

"Remittances are much more stable than FDIs (foreign direct investment) and crucial to India but while all kinds of incentives are given out for FDI, the central government has been totally neglecting the migrant community," Kerala finance minister Thomas Isaac told NDTV.

"They need to be made inclusive of India's development and not seen just as a source of remittance. While the Western market has improved, Saudi has been major culprit. We are looking at several other global markets, especially Africa and also focusing on job creation within the state, by partnering with our hugely experienced expats," Mr Isaac said.
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