Kerala facing economic crisis; 15 lakh expatriates have returned home, cash flow stagnating

Sunday 04 July, 2021 | 11:25 PM

THIRUVANANTHAPURAM: Statistics show that the return of expatriates due to Covid will lead to an economic crisis in Kerala which will be ten times more than the crisis created by the return of expatriates in 1990 following the Kuwait war. During the Kuwait war, 1.70 lakh Keralites returned home after losing their jobs. As of now, more than 15 lakh people have returned to the state due to Covid.

The state's commercial and industrial investments, co-operative investment, real estate, and construction sector depend on NRI investment. A decline in this will lead to a huge drop in financial transactions. The unemployment of returnees is also a huge challenge.

According to figures released by the government on June 18, more than 10 lakh expatriates have lost their jobs. It is not clear how many will be able to return. Most of the returnees are financially insecure at home.

Out of 10.45 lakh people who lost their jobs, only 1.70 lakh people have applied for the emergency assistance of Rs 5,000. Assistance has been provided to 1.30 lakh people. Proceedings are in progress on the remaining applications.