1. Why Kerala Not Buying Enough Cars
is Something INDIAN GOVT SHOULD
WORRY

2. • Data released by Motor Vehicle Department
(MVD) There is decrease in vehicle sales in
KERALA
• There are 2.4 million keralites working abroad
of which 85% are in GULF countries as per
Kerala Migration Study (KMS)

3. • CURRENT SITUATION IN GULF COUNTRIES
SINCE FROM LAST 2 TO 3 YEARS
Countries like IRAN, IRAQ, ISREAL, SAUDI
ARABIA are facing economic recession

4. Reasons;
Economic Recession
Political Imbalance
Policy Change
Migration Problem
Slump in Crude Oil Prices (Major)

5. IMPACT on Earnings
• Remittance from Gulf Countries to INDIA fell
2.2% to $35.9 billion first time in last six years
• According to world bank data Indians sent
$35.9 billion which is 2.1% less to previous
year out of which 50% is remitted from Gulf
Countries

6. IMPACT ON INDIA (chain reaction)
Indians are getting low wages
Indians remits less to their families
Consumption pattern
Standard of living

7. Sales
Production
Gross Domestic Product GDP

8. STRATEGIES OF GULF COUNTRIES AND
INDIAN ECONOMISTS FORECAST
• Gulf countries are adopting cost cutting
measures like halting of construction and
projects, Subsidy cuts, Migration policy.
• Analysts says INDIA could see further fall in
remittance from Gulf countries if oil prices
stay low.
• A 2015 govt data states Kerala has contributed
3.78% to India’s GDP and foreign fund is the
biggest contribution to it.