The Importance of remittance

The remittance account about thirty five percent of NSDP (Net state domestic product) of Kerela for year 08-09.  The figure 35% of NSDP was really a surprise for me, so I did my research to understand this.  Before I write about my findings about remittance on Indian and global perspective, have a look at few more figures on importance of remittance for Kerela.

• Kerela has more than 27 emigrants per 100 household.
• Remittance are sufficient to wipe out more than 60% debt of state.
• Remittance were 1.74 times revenue receipt of state, 7 times of the transfer to the state from central government and 1.8 times of annual expenditure of Kerela.

Statistics are based on 2005 remittance, taken from a research paper.

While for few countries remittance as percent of GDP goes upto 45%, for India and few other countires remittance as percentage of GDP for year 2007 looks like this.

Remittance inflow in million $.

Top countries from where emigrants are sourcing money to their native country.

Now have a look at the remittance trend for India. Notice how the rate of increase of remittance is increasing. The remittance amount is in million US $. The detail can be found at World Bank published data.

I couldn’t lay my hands on remittance received by all the states within India, and how much remittance contribute to their NSDP. Will publish it when I get them.