Special fund to help the returnee diaspora in Kerala
Published Date: Saturday, Apr 06, 2013
Return migration has been on rise in recent years due to recession as well as unfavourable situations in many destination countries. Return migration often associated with enriched skills rather than failure. But it also brings risk of adjustment in the home state. In the recent budget session the Kerala Finance Minister K.M. Mani, proposed a special fund to help the diaspora returning to the state. He said that "There are close to three million Keralites working abroad. Of late, the job scenario in Middle East is changing and forcing our people to return. To help such people, we are starting a scheme in which the diaspora can contribute,". The capital will be given in the form of loan with three percent interest to start viable business. If this scheme is managed well, it may help in boasting entrepreneurship.
It must be noted that Kerala is the highest remittance receiver among all Indian states. Most of the Non Resident Keralites who reside in Gulf countries send the maximum remittances. Economist Prof. K.P. Kannan of the Centre for Development Studies (CDS), Trivandrum estimates that 25% of the state’s revenues are accounted for by remittances as compared to only 3% for the country as a whole. However in recent times there is fear of massive return migration made the government to rethink and plan accordingly. Prof. Irudaya Rajan of CDS predicted a massive return migration in near future.
Every Non Resident keralite knows they have to return one day and the Gulf economy may not support for long. This resulted in increase of deposit in commercial banks in Kerala which rose to Rs.55,000 crore as in June last year, up from Rs.38,000 the previous year. The Government of Kerala tried to absorb this shock as much as possible with the proposal such as 'Malayalam Missions' in several countries to reconnect the second and third generation Malayalees with their home state.