India's exports have started showing signs of slow revival after prolonged duration of a downward spiral. One of the reasons for the subdued export performance has been the global recession and absence of a diversified export basket. The national and international trend had its impact on the State's export scenario as well and the export performance of Kerala has also not been that promising during 2015-16. The State gets affected considerably by the international developments as it has a significant number of expatriate population. Non- Resident Keralites have been a strong pillar of growth for the State. The political and economic developments in the world, the indigenization drive in the Gulf countries, oil crisis and changing labour market trends have affected the non- resident keralites. From the policy perspective, the State has clear limitations in dealing with the national and international developments affecting the external sector.