Remittances are a key source of income for Kerala's economy. In 2003 for instance, remittances were 1.74 times the revenue receipts of the state, 7 times the transfers to the state from the Central Government, 1.8 times the annual expenditure of the Kerala Government, and 15 to 18 times the size of foreign exchange earned from the export of cashew and marine products. Gulf migrants, many of whom were from the working and the lower-middle classes, gradually gained social status. A myth was in the making: that of the 'Gulf man'. Gulf migrants were highly sought after as bridegrooms. Their attractive earnings, irrespective of their shortcomings, enabled them to marry into wealthy and respected families when they returned home. The Gulf Dream has also found its expression in Malayalam cinema and literature.
M. Mukundan's
Daivathinte Vikrithikal draws out in detail the socio-economic impacts of Gulf migration on the enclave of Mahe.
Impact of the 2026 Iran-Israel War According to international media reports, escalating military and political tensions in the Persian Gulf region involving Israel-US war on Iran, as well as allied regional states, have contributed to economic and labor market disruptions. The Gulf Cooperation Council (GCC) countries host millions of migrant workers, including approximately 9 million Indian nationals, who collectively send tens of billions of dollars in annual remittances. The reports note that heightened regional instability and security concerns have affected employment conditions, contract renewals, and workforce mobility, leading to the return of a number of migrant workers to India, particularly impacting regions such as Kerala. == Cultural shifts through consumerism in Kerala ==