State crosses ₹2 lakh crore in remittances and ₹3 lakh crore in NRI deposits for the first time
Kochi: In a historic financial milestone, annual remittances from Non-Resident Keralites have crossed ₹2 lakh crore, while NRI bank deposits in the state have exceeded ₹3 lakh crore for the first time. This dual surge has injected fresh momentum into Kerala’s economy, boosting household spending and domestic consumption, reported onmanorama.com.
Kerala regains top spot in India’s remittance map post-COVID as diaspora wealth flows in.
The Reserve Bank of India (RBI) has reported that Kerala alone accounts for 19.7% of India’s total remittance inflows, with $23.99 billion (around ₹2 lakh crore) flowing into the state—averaging ₹16,665 crore per month.
This marks a sharp jump from 2014, when remittances were ₹1 lakh crore annually. Meanwhile, NRI deposits in banks across Kerala stood at ₹2.93 lakh crore as of March 2025, recently crossing ₹3 lakh crore
The rise is being attributed to the growing number of Keralites earning higher incomes abroad, with significant contributions from not only the Gulf countries but also from countries like the US, UK, Canada, and Australia. This broadening diaspora base is redefining Kerala’s financial landscape.
Post-pandemic recovery sees Kerala reclaim dominance in India’s foreign remittance scene.
During the pandemic, Kerala’s share of national remittances had dropped to 10.2%, while Maharashtra soared to 35%. However, the tables have turned—Kerala has bounced back, while Maharashtra’s share has fallen to 20.5%. Tamil Nadu holds 10.4%, making these three states responsible for over half (50.6%) of India’s remittance volume.
Experts say this financial windfall opens a critical window for long-term planning. “Kerala must now implement forward-thinking projects to channel this capital towards development,” said banking analyst S Adikesavan. With the monthly remittance average soaring and deposits reaching record highs, the state stands at a unique economic crossroads.
With NRI wealth flowing in at record levels, Kerala is poised to convert financial gains into developmental transformation.
