Kerala gearing up for widespread economic distress

Winding up a business after 22 years of operation! Yes, COVID-19 has forced a reputed advertising firm in Kochi to shut shop. The firm is heavily dependent on revenues from gulf countries and financially constrained to outlive the COVID-19. When Gulf sneezes, Kerala catches a cold! COVID-19 is going to have a lasting impact on Kerala.

Prof. S. Irudaya Rajan of the Centre for Development Studies, Thiruvananthapuram, which publishes Kerala Migration Survey, estimates 2.5 million emigrants from Kerala across the world. Of this, 1.89 million live in the Gulf countries. Remittances from entire emigrants to Kerala make up to $16 billion. This is equivalent to 35% of the state income! Professor opines that emigrants returned to Kerala through Vande Bharat flights (0.15 million) is just like a trailer of the movie about to be released in December! He predicts the remittances from entire emigrants to Kerala to be lower by $2 billion this financial year. The economy of Kerala would be hit hard! He puts the returnees into three baskets - Normal returns, Distress returns and Returns for re-migration. We need to find ways and means to help all of them.

That’s not all. We have PepsiCo shutting its manufacturing unit in Palakkad. Trade unions had withdrawn a strike in April, demanding wage hike and better service conditions. But that has not settled the dispute it seems. The India exit of leisure motorcycling brand Harley-Davidson will impact two dealers in Kerala. The distress is not limited.

Meanwhile, Kerala won UN Award for Control of Non-Communicable Diseases. Another proud recognition for our healthcare system.

There is a nationwide protest by farmers & labour unions against the reform bills passed by parliament recently. It is yet to see any major repercussion in Kerala. The state government has decided to move Supreme court against Farm bills.

Economic distress all around, we are too consumed on gold smuggling, “Life Mission project” and so on.

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Location: Kochi, Kerala, India

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