A veteran Non-Resident Keralite (NRK) who has lived in the UAE for nearly five decades has called on the Kerala government to convert expatriate remittances into productive investments through the proposed Thiruvananthapuram–Kasaragod high-speed rail corridor.
In a letter to Chief Minister V. D. Satheesan, K. V. Shamsudheen, Chairman of the Pravasi Bandhu Welfare Trust, said the state should shift its diaspora community from being only remittance senders to long-term investors in Kerala’s development projects.
Proposal for bond-based funding model
Shamsudheen suggested raising funds through secured, redeemable, tax-free, non-convertible bonds targeted at Non-Resident Keralites. He compared the idea to the financing model used for the Konkan Railway project and said it could be linked to the ambitious rail corridor associated with “Metro Man” E. Sreedharan.
He added that similar initiatives had earlier received strong support from NRIs in the UAE when Konkan Railway bonds were introduced.
Huge remittance and savings base in Kerala
He highlighted the scale of Kerala’s overseas income, noting that Malayalis collectively send an estimated ₹2.3–2.5 lakh crore annually to the state, which accounts for nearly one-fifth of India’s total inward remittances.
He also pointed out that more than ₹3 lakh crore in NRE deposits is currently held in Kerala-based banks, earning relatively low returns instead of being invested in productive sectors.
Need for investment-driven growth
According to Shamsudheen, Kerala’s main challenge is not a shortage of funds but the lack of structured channels to convert household savings and diaspora wealth into long-term infrastructure and job-creating investments.
He said a significant portion of expatriate earnings continues to flow into assets like gold and real estate, rather than into sectors that generate employment and economic growth.
Alignment with government vision
He noted that the proposed bond model aligns with the state government’s broader policy direction of mobilising diaspora resources for development-focused investments.
Shamsudheen also urged the government to extend similar financing models to other large infrastructure projects in Kerala.
Unlocking Kerala’s diaspora potential
He described Kerala as a region with “untapped resources” rather than a lack of capital, stressing the need for an investor-friendly ecosystem that builds confidence among the global Malayali community and channels savings into development-led growth.
