Kerala, TN used most of the money for debt repayments as well as social causes: Study

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, according to a study by Western Union, the world’s biggest money transfer firm.

Remittances from Indians working overseas stood at $69 billion in 2015, making it the biggest recipient of international remittances, according to the report titled ‘Remittances and its impact on financial inclusion and development in India’.

The study stated that the money coming in constitute 4 per cent of India’s gross domestic product. However, State-wise distribution differs. Remittances in Kerala constitute 36 per cent of the State gross domestic product.

As per data from Centre for Development Studies citied by the report, remittances to Tamil Nadu were estimated to be Rs. 61,843 crore in 2015. The figure is 6.8 times the money that the State received from the Central government as revenue transfer and 1.8 times the entire government expenditure.

The per capita income (average income earned per person) of the State was Rs. 66,635, without taking remittances into account, and Rs. 75,214 if they are taken into account. The number of persons applying for workers receiving emigration clearance in Tamil Nadu was 83,202 in 2014, according to the data.

Another Western Union study highlighted the positive impact of inward remittances on financial inclusion, poverty and social factors, such as health and education. This study had 52 respondents across states like Kerala, Tamil Nadu, Andhra Pradesh, Uttar Pradesh, Punjab and Delhi.

The report said 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. It also said that remittances 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.