Remittances contribute to Kerala’s economy through:

The correct answer is D. Remittances contribute to Kerala’s economy through consumption expenditure, investment in housing, and support for small businesses.

• Consumption expenditure: Remittances are used to purchase goods and services, which helps to stimulate the economy. For example, remittances are used to buy food, clothing, and other household items. They are also used to pay for education, healthcare, and other services.
• Investment in housing: Remittances are used to build or improve homes, which helps to create jobs in the construction industry. They are also used to buy land, which can be used for commercial or residential purposes.
• Support for small businesses: Remittances are used to start or expand small businesses, which helps to create jobs and generate economic growth. For example, remittances are used to buy equipment, inventory, and other supplies. They are also used to pay for marketing and advertising.

In addition to these direct economic benefits, remittances also have a number of indirect benefits. For example, remittances can help to reduce poverty and inequality, improve education and healthcare, and promote social development.