UAE-based Pravasi Bandhu Welfare Trust has urged the Kerala government to tap the savings, skills, and business networks of Non-Resident Keralites (NRKs) to create jobs and support economic growth.
Trust chairman K.V. Shamsudheen made the suggestions in a memorandum submitted to Chief Minister V.D. Satheesan, proposing measures to channel NRI savings into infrastructure, industry, and other productive sectors.
The trust said more than ₹3 trillion was held in Non-Resident External (NRE) deposits in Kerala banks, earning less than 7% interest. It suggested mobilising part of these funds for investments that generate jobs and economic activity.
“Kerala receives an estimated ₹2.3-2.5 lakh crore in remittances from expatriates each year, accounting for nearly 20% of India’s inward remittances,” the memorandum said.
Mutual funds for NRKs
Mr. Shamsudheen suggested that the government-owned Cheraman Financial Services Ltd. (CFSL) launch professionally managed mutual fund schemes for NRKs. Expatriates could invest through systematic investment plans (SIPs) and receive regular income through systematic withdrawal plans (SWPs) after retirement.
The trust said this could help NRKs plan for retirement while directing part of their savings into Kerala’s economy.
Bonds for infrastructure
The trust suggested raising funds from NRKs for the proposed high-speed railway between Thiruvananthapuram and Kasaragod through a secured, redeemable and tax-free non-convertible bond.
Mr. Shamsudheen said the Konkan Railway’s use of tax-free bonds could serve as a model. He said he had promoted the bonds among NRIs in the UAE and witnessed strong investor participation when veteran technocrat E. Sreedharan led the project.
The trust also suggested a CIAL-style public limited company to raise equity from NRKs and residents.
Manufacturing and agro-processing
The memorandum called for incentives to FMCG companies such as Hindustan Unilever, Nestle, and Britannia to establish manufacturing units in Kerala. It also sought investment in processing and value addition of coconut, spices, rubber, mango, and jackfruit.
The trust said Kerala could develop coconut-based industries and tap Gulf demand for products such as jackfruit and tender coconut. It also called for expanding SME opportunities for Gulf returnees by using their skills, experience, and business networks.
The trust proposed developing tourism through better infrastructure, hospitality, safety, and visitor services.
It also urged the government to invite reputed foreign universities and colleges to set up campuses in Kerala. Mr. Shamsudheen said this could attract foreign students and reduce the number of students leaving the State for higher education.
The trust called for promoting Kerala’s healthcare sector and traditional systems such as Ayurveda, homeopathy, Siddha, and Unani to expand medical tourism. It also urged the government to promote IT, artificial intelligence, digital services, advanced manufacturing, and precision manufacturing to create jobs for the younger generation.
Published – August 13, 2026 12:33 am IST
