Kerala CM: Centre is of no help on Gulf-returnee crisis

The Centre is not being helpful on the issue of the Keralites who are returning in significant numbers from the oil-dependent economies of the Gulf, Kerala chief minister Pinarayi Vijayan said.

“The issue of big numbers of people coming back from the Gulf is a big concern. The Kerala state government had submitted a proposal to the Centre but it is not being seen in a favourable light by New Delhi,” Mr Vijayan told reporters on the sidelines of a press conference here on Saturday.

“This is an issue which has to be tackled jointly by the Centre and the various states whose people are coming back from the Middle East region. The state government is therefore trying to work out how to handle the situation.”

Plummeting global crude oil prices is hitting Kerala in two big ways. Firstly, many people who are losing their jobs due to cuts effectuated by loss of profitability are returning home from the United Arab Emirates, Kuwait, Saudi Arabia, Bahrain, Qatar, and Oman. Secondly, because of reduced profitability, remittances being sent to their home states have registered a steep dive.

Despite lack of notable economic development, Kerala has a high human development index which is largely due to high income levels. A large part of this is owing to substantial remittances being sent home from abroad.

About 30 lakh Keralites work outside the state either in other Indian states or abroad, mainly in the Gulf. One in every third house in Kerala has someone staying in the Gulf. Constituting about a third of Kerala’s gross domestic product, remittances worth about Rs 1 lakh crore sent by the Keralites, is critical for the state’s economy.

The state government is understandably apprehensive of the low availability of money circulating in the economy, especially when Onam is about to begin from September 14.

This is that time of the year when people splurge on movable and immovable assets and consumer durables. Meanwhile, chief minister Vijayan presented his slew of achievements in the national capital on completion of hundred days of assuming power in the state. He also presented a future roadmap of development.