An Introduction to Kerala Economy

An Introduction to Kerala economy

Kerala is known as God’s own country. The state is located along the coastline to the extreme southwest of the Indian peninsula, flanked by the Arabian Sea on the west and the Mountains of the Western Ghats on the east. The state has a coastline of 580 km.

Kerala is one of the few states to have marketed its natural beauty successfully to the leisure tourism sector. The state’s unique heritage and cultural diversity have helped attract tourists from the world over. BBC Travel survey has rated Kerala as the top favourite tourist destination among foreign travellers.

It is a leading agricultural state in the country and the largest producer of rubber, pepper, coconut and coir. As per budget 2016-17, Government of Kerala proposed an outlay of US$ 116.74 million for the agriculture sector.

Kerala has a wide range of fiscal and policy incentives for businesses under the Industrial and Commercial Policy and has well-drafted sector-specific policies. Kerala stands 18th among Indian states in rankings based on Ease of Doing Business and reforms implementation, according to a study by the World Bank and KPMG.

Kerala Economy

Kerala has witnessed tremendous development especially from the economic point of view. Although Kerala economy is primarily based on agriculture, the strong historical significance and natural attributes of the state have resulted in the presence of several industries in Kerala.

Kerala has the following to its credit:

The highest Literacy rate in India.
Tourism has grown to be a front line Industry government backing and private management.
An efficient public transport system.
Information Technology is becoming a key area of economic excellence

Role of agriculture in Kerala economy:
The following are the features of the predominantly agrarian economy of Kerala:

Kerala is a major producer of Cash Crops like coconuts, rubber, tea, coffee, pepper, cardamom, cashew, areca nut, nutmeg, ginger, cinnamon, and cloves.
Coconuts bring the people their principal source of earning in agriculture. Nearly 70% of Indian output of coconuts is provided by Kerala. .
Cardamom is one of the major exports of India and the bulk of Cardamom comes from Kerala.

Role of industry in Kerala economy:
Industries of Kerala economy are hugely based on agriculture and marine products. Some traditional industries are:

Coir and coir products
Marine products
Handloom and handicrafts related to ivory, wood, bone carving, hand embroidery, cane works, coconut shell carving, and paddy straw picture making.
Village industries manufacture Khadi, fiber, Pottery, lime, paper, matches, gobar gas, cane, and bamboo.

The economy of Kerala, though small and agro-based, has a lot to look forward in future with the upcoming of IT and allied industries that are willing to exploit the yet-to-be tapped Resources.

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 fiscal year are expected to be about Rs. 6,700 crore.

The government applies the highest state tax in the country on liquor (around 150%). This earns it high revenues. Rum is the favorite alcohol beverage for Keralites followed by brandy.

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.

Banking:

Kerala is the single largest originator of Education loans for the country as a whole. Total disbursal of education loans amount to Rs 6,000 crore.

Infrastructure-2/”>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. 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%.

Kerala is a state in India that is known for its high literacy rate, low infant mortality rate, and high life expectancy. The state has a long history of social reform and has been at the forefront of many progressive movements in India.

The economy of Kerala is based on agriculture, industry, and tourism. Agriculture is the largest sector of the economy, employing about 50% of the workforce. The main crops grown in Kerala are rice, coconut, tea, and rubber. The state also has a thriving fishing industry.

Industry is the second largest sector of the economy, employing about 25% of the workforce. The main industries in Kerala are textiles, electronics, and Software. The state also has a number of small-scale industries, such as Food Processing and handicrafts.

Tourism is the third largest sector of the economy, employing about 15% of the workforce. Kerala is a popular tourist destination due to its beautiful beaches, lush forests, and ancient temples.

The social sector in Kerala is well-developed. The state has a high literacy rate, low infant mortality rate, and high life expectancy. The state also has a strong public Health system and a well-developed education system.

Kerala’s Human Development index is one of the highest in India. The state has made significant progress in reducing POVERTY and improving the Quality Of Life of its people.

Kerala’s Economic Development challenges include the need to diversify the economy, reduce the state’s dependence on agriculture, and improve infrastructure. The state also faces the challenge of providing EMPLOYMENT to its growing population.

Despite these challenges, Kerala’s economy is growing at a healthy rate. The state has a number of strengths, including a well-educated workforce, a strong social sector, and a favorable Investment Climate. Kerala is well-positioned to achieve further economic development in the years to come.

Here are some additional details on each of the subtopics:

History of the Kerala economy: The economy of Kerala has been shaped by its history. The state was ruled by the British for over 200 years, and this had a significant impact on the development of the economy. The British introduced cash crops, such as tea and coffee, to Kerala, and these crops became the mainstay of the economy. After independence, Kerala experienced rapid economic Growth. The state’s economy was based on agriculture, industry, and tourism. However, the economic growth of Kerala slowed down in the 1990s. This was due to a number of factors, including the Gulf War, the decline of the tea and coffee industries, and the rise of Globalization/”>Globalization-3/”>Globalization.
Economic structure of Kerala: The economy of Kerala is based on agriculture, industry, and tourism. Agriculture is the largest sector of the economy, employing about 50% of the workforce. The main crops grown in Kerala are rice, coconut, tea, and rubber. The state also has a thriving fishing industry. Industry is the second largest sector of the economy, employing about 25% of the workforce. The main industries in Kerala are textiles, electronics, and software. The state also has a number of small-scale industries, such as food processing and handicrafts. Tourism is the third largest sector of the economy, employing about 15% of the workforce. Kerala is a popular tourist destination due to its beautiful beaches, lush forests, and ancient temples.
Agriculture in Kerala: Agriculture is the largest sector of the economy of Kerala, employing about 50% of the workforce. The main crops grown in Kerala are rice, coconut, tea, and rubber. The state also has a thriving fishing industry.
Industry in Kerala: Industry is the second largest sector of the economy of Kerala, employing about 25% of the workforce. The main industries in Kerala are textiles, electronics, and software. The state also has a number of small-scale industries, such as food processing and handicrafts.
Tourism in Kerala: Tourism is the third largest sector of the economy of Kerala, employing about 15% of the workforce. Kerala is a popular tourist destination due to its beautiful beaches, lush forests, and ancient temples.
Kerala’s social sector: The social sector in Kerala is well-developed. The state has a high literacy rate, low infant mortality rate, and high life expectancy. The state also has a strong public health system and a well-developed education system.
Kerala’s human development index: Kerala’s human development index is one of the highest in India. The state has made significant progress in reducing poverty and improving the quality of life of its people.
Kerala’s economic development challenges: Kerala’s economic development challenges include the need to diversify the economy, reduce the state’s dependence on agriculture, and improve infrastructure. The state also faces the challenge of providing employment to its growing population.

What is the economy of Kerala like?

Kerala has a diversified economy with a strong focus on agriculture, manufacturing, and Services. The state is a major producer of spices, tea, and rubber, and it also has a thriving tourism industry. Kerala’s economy is growing at a healthy pace, and the state has a low poverty rate.

What are the main industries in Kerala?

The main industries in Kerala are agriculture, manufacturing, and services. Agriculture is the largest sector of the economy, accounting for about 30% of GDP. The main crops grown in Kerala are rice, coconut, tea, and rubber. Manufacturing is the second largest sector of the economy, accounting for about 20% of GDP. The main industries in manufacturing are textiles, electronics, and food processing. Services is the third largest sector of the economy, accounting for about 50% of GDP. The main services in Kerala are tourism, education, and healthcare.

What are the main challenges facing the economy of Kerala?

The main challenges facing the economy of Kerala are low productivity, high Unemployment, and a large Fiscal Deficit. The state government is working to address these challenges by investing in infrastructure, education, and healthcare.

What are the main opportunities for the economy of Kerala?

The main opportunities for the economy of Kerala are in the areas of tourism, manufacturing, and services. The state government is working to attract foreign investment and to develop new industries.

What is the future outlook for the economy of Kerala?

The future outlook for the economy of Kerala is positive. The state is expected to continue to grow at a healthy pace, and the government is working to address the challenges facing the economy.

Which of the following is not a major economic activity in Kerala?
(A) Agriculture
(B) Industry
(C) Tourism
(D) IT
Which of the following is the main Source Of Income for the people of Kerala?
(A) Agriculture
(B) Industry
(C) Tourism
(D) Remittances
Which of the following is the main export product of Kerala?
(A) Cashew nuts
(B) Coconut oil
(C) Tea
(D) Coffee
Which of the following is the main import product of Kerala?
(A) Petroleum products
(B) Machinery
(C) Fertilizers
(D) Food grains
Which of the following is the main source of employment in Kerala?
(A) Agriculture
(B) Industry
(C) Services
(D) Government
Which of the following is the main source of power in Kerala?
(A) Hydroelectricity
(B) Thermal power
(C) Nuclear power
(D) RENEWABLE ENERGY
Which of the following is the main mode of transportation in Kerala?
(A) Road
(B) Rail
(C) Air
(D) Water
Which of the following is the main language spoken in Kerala?
(A) Malayalam
(B) Tamil
(C) Kannada
(D) Telugu
Which of the following is the main religion in Kerala?
(A) Hinduism-2/”>Hinduism
(B) Islam
(C) Christianity
(D) Sikhism
Which of the following is the capital of Kerala?
(A) Thiruvananthapuram
(B) Kochi
(C) Kozhikode
(D) Thrissur