Kerala sees record-breaking inflow from NRIs

Kochi: Annual remittances sent by Non-Resident Malayalis to Kerala have crossed ₹2 lakh crore for the first time. Simultaneously, NRI deposits in banks across the state have crossed ₹3 lakh crore.

This surge has given a substantial boost to Kerala’s economy, particularly by enhancing household spending and domestic consumption. While the rising value of Indian rupee has played a part, the increase is also driven by the growing number of Keralites migrating overseas and earning higher incomes.

Though Gulf nations continue to contribute the lion’s share of remittances, inflows from countries like the United States, United Kingdom, Canada and Australia are growing significantly.

As per the Reserve Bank of India (RBI) bulletin, Kerala accounts for 19.7% of the country’s total remittance inflows. Of India’s total foreign remittances of $118.70 billion (approximately ₹10.14 lakh crore), Kerala’s share is $23.99 billion or about ₹2 lakh crore—an average monthly inflow of ₹16,665 crore.
This represents a sharp rise from 2014, when annual remittances to Kerala were ₹1 lakh crore, averaging ₹8,333 crore per month.

Kerala has traditionally received about one-fifth of India’s total foreign remittance inflow. However, during the COVID-19 pandemic, its share dropped to 10.2%, while Maharashtra’s rose to 35%. Post-pandemic, Kerala’s numbers rebounded impressively, regaining its dominance as Maharashtra’s share declined to 20.5%. Tamil Nadu, by comparison, currently accounts for 10.4%. Collectively, these three states now receive 50.6% of India’s remittance volume.

According to the State Level Bankers’ Committee (SLBC), NRI deposits in Kerala banks stood at ₹2,93,622 crore as of March 2025. With average monthly inflows now at ₹16,665 crore, the total has crossed the ₹3 lakh crore milestone.
Commenting on this trend, banking analyst S Adikesavan noted that remittances and deposits are expected to keep growing. “Kerala must now implement forward-thinking projects to channel this capital towards long-term development,” he said.