INDIA

S. IRUDAYA RAJAN

HIGHLIGHTS

• EMIGRATION FROM AND REMITTANCES TO INDIA

• MIGRATION AND REMITTANCES: KERALA EXPERIENCE

• MACRO IMPACT

Emigration Estimates

• High Level Committee on Indian Diaspora in 2001: 20 million (people of Indian origin and Non-Resident Indians): 16 million

• Ministry of Overseas Indian Affairs (MOIA) in its first annual report, 2004-2005 states that Indian Diaspora is about 25 million.

• MOIA in its latest annual report, 2012-13: 25 million in 183 countries.

Estimates of Non-Resident Indians

• High Level Committee, 2001• Gulf: 3.3 million• Europe: 0.2 million• Asia and Pacific: 0.2 million• Africa: 0.08 million• Central and South America: 7307• USA: 1.7 million; UK: 1.2 million; Canada: 0.9

million; South Africa 1.0 million (PIO+NRI)

Estimated Indian Migrant Stock, 2010Destination Countries NumberAustralia 209908Qatar 250649Sri Lanka 336352Kuwait 393210Oman 447824Canada 516508United Kingdom 657792Nepal 831432Bangladesh 1052775Saudi Arabia 1452927United States of America 1654272United Arab Emirates 2185919All Other Countries 1371256Total 11360823

MOIA-RUIM-CDS Estimates

• Based on our research in Kerala since 1998• Our estimate: 12 million workers• 6 million in the Gulf• UAE No 1, followed by Saudi Arabia• What do other data sources tell us about Gulf

Migration?• As per the latest MOIA annual report, 97% of

the ECR passport holders left for Gulf.

Trends in Workers Emigrated from India, 1985-2012

Workers Granted Emigration Clearance by Major States, 1993-2012

Labour outflows from India by destination 1988-2012

Trends in Remittances : 1975-2012

Remittance flows to India as Percentage of GDP 1990- 2012

Kerala Migration Surveys

• Kerala Migration Survey 1998

• Kerala Migration Survey, 2003

• Kerala Migration Survey, 2007

• Kerala Migration Survey, 2008

• Kerala Migration Survey, 2011

www.cds.edu

Emigrants, Return Emigrants and Non-Resident Keralites, 1998-2011

Number of Emigrants by Districts in Kerala, 2011

Population of Kerala and Emigration by Religion, 2011 ( in percent)

Number of Kerala Emigrants in the Gulf Countries, 1998-2011Number of Kerala Emigrants in the Gulf Countries, 1998-2011

Total Remittances for Kerala 1998-2013

Years Rs (Crores)

1998 13652

2003 18465

2008 43288

2011 49695

2013 60000

Total Remittances by Districts, 2011

Macro-Economic Impact of Remittances, 1998 - 2011

Indicators 1998 2011

Remittances 13652 49695

NSDP 53552 159144

Modified NSDP 67204 208839

Per Capita Income 16062 52084

Modified Per Capita Income 20157 67994

State Debt 15700 78239

Remittances as percent of NSDP (%) 25.5 31.2

Remittances as ratio of Revenue Receipt 1.9 1.6

Remittances as ratio of Transfer from Centre 6.9 6.2

Remittances as ratio of Government

Expenditure2.3 2.2

Remittances as ratio of State Debt 0.9 0.6

Remittances as ratio of Receipt from Cashew

Export10.4 30.4

Remittances as ratio of Receipt from Marine

Export16.7 29.8

Percent of Households with Emigrant and possession of Very Good or Luxurious houses

Annual Savings and Investment

MembershipAnnual Savings

Annual Investments

HHs with No Emigrants 16244 60304

HHs With Emigrants 32809 139919

Total 21991 91187

Monthly Food and Non Food expenses

Membership FOOD Non Food Expenses

HHs with No Emigrants

2850 3144 5994

HHs With Emigrants 3256 4425 7681

Total 2994 3597 6591

Annual Health and Education Expenses

MembershipAnnual Medical

Expenses

Annual Education Expenses

HHs with No Emigrants 6469 10688

HHs With Emigrants 12169 19186

Total 8538 13933

Direct Benefits of Migration• Savings and Investment

• Human Development (education and health)

• Unemployment and Poverty

• Standard of Living

• Reduce Inequality

Indirect effects of migration

• Reductions in Fertility• Political participation (financing political

parties and elections)• Philanthropy• Women empowerment• Knowledge and skills diffusion• Entrepreneurship and work culture