ABSTRACT

Gujarat is one of the few states in India which has experienced substantial international outmigration over a period of time, especially since independence. Many studies and reports have found that due to emigration, the state receives a substantial amount of remittance, which is one of the important factors for the socioeconomic transformation of the state. The main objectives of the present chapter are (a) to study the flow of remittance to emigrant households and its use pattern and (b) to study the perceptions of household members on possible impacts of emigration. The present chapter is based on primary data collected through a representative sample survey of 10,000 households covering the entire state of Gujarat. The chapter shows that the mean amount of remittance received by emigrant households is 135,979 rupees during the last year. About 90.0 percent of households reported that they spend the remittance on household consumption, while about two-fifths of households reported spending it on health care expenses. A significant amount of remittances is also sent by emigrants in terms of donations to social causes. Real estate is the preferred choice of investment, as 70.0 percent of emigrants reported investing in housing. More than four-fifths of respondents reported that due to emigration, there is an increase of economic as well as social status of the household. Overall, emigration in Gujarat seems to have a positive impact at various levels, like the individual, household and community levels, and therefore has important policy implications.