Economy of Kerala
- This article deals with the economy of Indian state of Kerala
Culture | Economy | Geography | History | People | Politics | Society
Service industry dominates the Kerala economy [1]. Kerala leads many other Indian states and territories in terms of per capita GDP (74,620 INR States of India by size of economy[2]) and economic productivity and Kerala's Human Development Index is the best in India. According to the Global Hunger Index 2008, the severity of hunger situation in Kerala is "serious", which is better than the grade "alarming" received by many Indian states.[3] Kerala's low GDP and productivity figures juxtaposed with higher development figures than in most Indian states — is often dubbed the "Kerala Phenomenon" or the "Kerala Model" of development by economists, political scientists, and sociologists. This phenomenon arises mainly from Kerala's unusually strong service sector.[citation needed] Some describe Kerala's economy as a "democratic socialist welfare state". Some, such as Financial Express, use the term "Money Order Economy".[4] Kerala's economic progress is above the national average. But relatively few major corporations and manufacturing plants are headquartered in Kerala.
The 2011 census shows Kerala's HDI to be 0.920, which is higher than that of most developed countries.
Around 30 lakh Keralites are working abroad mainly in Persian Gulf; migration to where started with the Kerala Gulf boom. So the Kerala Economy is largely dependent on remittances.[5][6][7] S. Irudaya Rajan describes the situation as "Remittances from global capitalism are carrying the whole Kerala economy".[5] Unemployment recently dropped from a large 19.1% in 2003 to 9.4% in 2007 & only 4.2% in 2011 .[8] Underemployment, low employability of youths, and a 13.5% female participation rate are chronic issues.[9]:5, 13[10] One concern is that Kerala government is running some of the highest deficits in India.
Contents |
[edit] Macro-economic trend
This is a chart of trend of gross state domestic product of Kerala at market prices estimated by Ministry of Statistics and Programme Implementation with figures in millions of Indian Rupees.
| Year | Gross State Domestic Product |
|---|---|
| 1980 | 42,860 |
| 1985 | 75,200 |
| 1990 | 140,980 |
| 1995 | 387,620 |
| 2000 | 697,920 |
| 2005 | 1,025,080[11] |
The state's debt was estimated at 56 per cent of GDP in 2005.[12]
[edit] Agriculture
Kerala produces 97% of national output of pepper and accounts for 85% out of the area under natural rubber in the country.[13] Coconut, tea, coffee, cashew, and spices — including cardamom, vanilla, cinnamon, and nutmeg — comprise a critical agricultural sector. A key agricultural staple is rice, with some six hundred varieties grown in Kerala's extensive paddy fields.[14] Nevertheless, home gardens comprise a significant portion of the agricultural sector. Related animal husbandry is also important, and is touted by proponents as a means of alleviating rural poverty and unemployment among women, the marginalized, and the landless. Feeding, milking, breeding, management, health care, and concomitant micro-enterprises all provide work for around 32 lakh (3.2 million) of Kerala's 55 lakh (5.5 million) households. The state government seeks to promote such activity via educational campaigns and the development of new cattle breeds such as the "Sunandini".
[edit] Alcohol
Ironically one of Kerala's major social problems is also a huge revenue earner for the state. Kerala consumes more alcohol than any other state in India. The state government holds a monopoly over liquor sale in the state, after the state banned foreign liquor shops, through the government owned Kerala State Beverages Corporation (KSBC). Every year, liquor and beer sales have been rising and the total sales of liquor and beer during 2010-11 fiscal year is expected to be about Rs. 6,700 crore.[15]
The government applies the highest state tax in the country on liquor (around 150%). This earns it high revenues. Total revenue by way of taxes on the sale of liquor and beer was Rs.5,539 crore in 2009-10.
Rum is the favorite alcohol beverage for Keralites followed by brandy. [16]
[edit] Tourism
Kerala is an established tourist destination for both Indians and non-Indians alike. Tourists mostly visit such attractions as the beaches at Kovalam, Cherai and Varkala, the hill stations of Munnar, Nelliampathi, and Ponmudi, and national parks and wildlife sanctuaries such as Periyar and Eravikulam National Park. The "backwaters" region — an extensive network of interlocking rivers, lakes, and canals that center on Alleppey, Kumarakom, and Punnamada — also see heavy tourist traffic. Examples of Keralite architecture, such as the Padmanabhapuram Palace, Padmanabhapuram, are also visited. The capital city Thiruvananthapuram, Kochi(called as the "Queen of the Arabian Sea"), and Alappuzha(called the "Venice of the East"), are popular destinations. Tourism plays an important role in the state's economy.
[edit] BSE listed Kerala companies
- 1) Manappuram General Finance and Leasing Ltd
- 2) Muthoot Capital Services Ltd
- 3) Federal Bank
- 4) Dhanlaxmi Bank
- 5) South Indian Bank
- 5) ESAF Microfinance and Investments
- 6) Geojit BNP Paribas
- 7) Muthoot Finance
- 8) State Bank of Travancore
- 9) Harrisons Malayalam
- 10) Cochin Minerals and Rutile Limited
- 11) Cochin Minerals and Rutile Limited
- 12) Kerala Solvent Extractions Ltd
- 13) GTN Textiles Limited
- 14) Kitex Garments
- 15) Nitta Gelatin India Ltd
- 16) Eastern Traders
- 17) Rubfila International
- 18) Kerala Ayurveda Ltd
- 19) Vertex Securities Ltd
- 20) V-Guard Industries Ltd
- 21) Sree Sakthi Paper Mills
- 22) AVT Natural Products
- 23) Accel Transmatic Limited
[edit] Foreign Remittances
In a state of 32 million where unemployment approaches 20 percent, one out of six employed Keralite now works overseas. As of 2008, the Gulf countries altogether have a Keralite population of more than 2.5 million, who send home annually a sum of USD 6.81 billion,[17] which is more than 15.13% of Remittance to India in 2008. The largest number work in construction, although high literacy allows Keralites to secure office work. Foreign remittances augment the state’s economic output by nearly 25 percent. Migrants’ families are three times as likely as those of nonmigrants to live in superior housing, and about twice as likely to have telephones, refrigerators and cars.[18]
[edit] Infrastructure
Kerala has 145,704 km of roads (4.2% of India's total). This translates into about 4.62 km of road per thousand population, compared to an all-India average of 2.59 km. Virtually all of Kerala's villages are connected by road. Traffic in Kerala has been growing at a rate of 10–11% every year, resulting in high traffic and pressure on the roads. Total road length in Kerala increased by 5% between 2003-2004. The road density in Kerala is nearly four times the national average, and is a reflection of Kerala's unique settlement patterns. India's national highway network includes a Kerala-wide total of 1,524 km, which is only 2.6% of the national total. There are eight designated national highways in the state. Upgrading and maintenance of 1,600 km of state highways and major district roads have been taken up under the Kerala State Transport Project (KSTP), which includes the GIS-based Road Information and Management Project (RIMS). Kerala ranks second nationwide in diesel-based thermal electricity generation with national market share of over 21%.
[edit] See also
[edit] External links
[edit] Notes
[edit] References
|
|
|
||||||||||||||||||||||||||||||||||||||||
