The correct answer is C) Remittances.
Remittances are money that people living and working abroad send to their families and friends in their home country. They are a significant source of income for many developing countries, and Kerala is no exception. In 2019, remittances to Kerala totaled $17.3 billion, which was more than the state’s total revenue from taxes.
There are several reasons why remittances are so important to Kerala. First, they provide a significant source of foreign exchange. This helps to offset the state’s trade deficit and stabilize its currency. Second, remittances help to reduce poverty and inequality. They are often used to invest in education, healthcare, and other basic needs. Third, remittances can help to stimulate economic growth. They can be used to start businesses, invest in infrastructure, and create jobs.
Kerala’s large diaspora is a major source of remittances. The state has a long history of migration, and there are now large communities of Malayalis living in the Middle East, the United States, and other countries. These migrants often send money back to their families in Kerala, which helps to support the state’s economy.
Remittances are a vital source of income for many people in Kerala. They help to reduce poverty, stimulate economic growth, and stabilize the state’s economy. The state’s large diaspora is a major source of remittances, and the government has taken steps to encourage further migration and remittances.