With regard to under developed and developing nations like India, migration of people to various developed nations plays vital role in the national development. Migration is immensely recognized as an important component for the achievement of social and economic development of a nation. Rapid increase in the number of emigrants from Kerala to Gulf countries since 1970s, has led to significant economic transformation in the state such as higher level of income, consumption and acquisition of properties, reduction of poverty etc. In Kerala, northern region supply large number of emigrants to Gulf nations. The present study focuses on analyzing the impact of migration to GCC countries on Kerala economy with special reference to migrants in Malappuram district. The study reveals that majority of the emigrants give preference for education of their children in their consumption followed by preference for health related issues. The study concludes that proper remedial measures should be identified for settling emigrants who are returning back to Kerala and investment habit among emigrants should be encouraged.