Kerala Economic Review 2014: State records growth rate of 6.49 per cent

Kerala has recorded a growth rate of 6.49 per cent in the last fiscal, which is above the national average.

Written by Shaju Philip | Thiruvananthapuram | Updated: March 12, 2015 10:57 pm

The Kerala Economic Review 2014, presented in the assembly on Thursday, said the state has recorded a growth rate of 6.49 per cent in the last fiscal, which is above the national average (4.04) and the second highest among South Indian States.

It said the state’s growth rate was above that of Karnataka (5.79 per cent) and Andhra Pradesh (5.97 per cent). The southern state which has the highest growth rate is Tamil Nadu (7.48 per cent).

According to the review, the service sector continues to dominate the Kerala economy which is heavily depended on overseas remittance. Segments such as transport, communication, trade, hotels, banking and insurance, and real estate have performed well.

In highly-literate Kerala, which is on a fast track towards urbanization, unemployment and mental illness is much above the national average.

The state has undergone the highest level of urbanization in its history during 2001-2011 with a percent increase of 83.82 over the previous decade. Kerala was positioned in the 19th rank in the level of urbanisation among Indian states as per the 2001 Census. But as per date of census 2011, Kerala was ranked 9th.

Generally, increase in the rate of urban population is the result of over concentration of population in the existing cities especially in metropolitan cities. But in Kerala, the main reason for the growth of urban population is the increase in the number of urban areas and also urbanization of the peripheral areas of the existing major urban centres.

The report said the effectiveness of investments in infrastructure development is considerably reduced since the scarce resources are spread too thinly throughout Kerala.

Although the state has been registering a high growth rate for quite some times now, it records the highest unemployment rate. Only small states of Nagaland and Tripura have a higher unemployment rate than Kerala. Unemployment in Kerala is found to be over three times the all India average. In Kerala, unemployment rate is much higher among females as compared to males despite remarkable women empowerment and poverty alleviation initiatives.

In mental illness and mental retardation, Kerala suffers much above the all India average. As per the census of 2011, 0.20 per cent of the Kerala population is suffering from mental illness and 0.20 per cent of population suffers from mental retardation compared to a national average of 0.06 per cent and o.12 per cent, respectively.

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  1. A
    Anuradha Kalhan
    Mar 12, 2015 at 8:56 pm
    The thing with Kerala's data generally and specially on mental illness, unemployment and female unemployment etc is that that Kerala keeps its statistical records in far greater order and with greater rigor than other states. In most other states mental illness is neither recognized nor recorded let alone treated. Pretty much the same for unemployment.That is a product of Kerala's literacy and social/ public aen.
    1. P
      Mar 16, 2015 at 6:23 am
      Mental illness is real. See the pandemonium in Kerala embly. If they represent the Kerala people, what other proof is needed to acknowledge the mental health!
      1. F
        Faizel Mootheril
        Mar 12, 2015 at 10:01 pm
        @Anuradha Kalhan, I totally agree with you. I get the feeling that data in Kerala is much more accurate than a majority of other states in India. It is ridiculous to suggest that Kerala has high unemployment rate when sources listed in Wikipedia suggest 4.2% in 2011. The following are direct quote from a 2011 article in Deccan Herald site. "The last count shows that about 25 lakh migrant labourers are working in Kerala and their numbers are growing at an incredible pace of 10 per cent annually.� They drain out Rs 17,000 crore annually from the state by way of wages alone! In contrast, nearly 22.8 lakh Keralites are working abroad and nearly 10 lakh are in other states, says the study quoting a State Planning Board’s statistical reports for 2011. It shows that Kerala labour market needs at least 5 lakh workers more to maintain the balance between demand and supply. " -
        1. H
          Sep 2, 2015 at 6:21 am
          Kerala changed after gulf boom. Previous to that people went to Bombay. Then Madras. The trend was to seek employment outside Kerala. Expectedly, the strikes and bandhs have turned Kerala into a paradox. Is it really educated in that sense ? Many students study outside Kerala. There are no train facilities to Kerala for Keralites who visit. Even Coimbatore has better trains. Kerala politicians have taken the people for a big ride for years. Equality and socialism are undoubtedly the best hallmark of Kerala. Drinking habits and unwanted controversies are taking the state backwards. God given forests should be maintained. Wish all Keralites well.
          1. H
            Harish Kiran
            Mar 12, 2015 at 9:27 pm
            The Perpetual Paradox.
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