Is Kerala an economically developed state?
The state of Kerala located in southern India has attracted global attention. Along with developed literacy rate, the state has attained a quality life without even any remarkable increase in agricultural production, industrial growth or investment. With a liberal and mixed economy, this state leads several other states in the country of India in terms of economic productivity as well as per capita Gross Domestic Product (G. D. P.). The Human Development Index of this state is the best in the nation. Kerala economy and business is often described as a "democratic socialist welfare state" by some economists. Though few of the major manufacturing plants and corporations are headquartered in this state, yet Kerala is said to have progressed more than the national average in terms of economy.
Major contributing factors in the economy of Kerala
Following are some of the major factors, which contribute to Kerala's economy:
- Foreign Remittances: Mainly depending upon foreign remittances, Kerala economy started to boom owing to the fact that almost 30 lakhs of the inhabitants of this state are working in Persian Gulf and other foreign countries. Survey says 1 out of every 6 employed people of Keala work abroad. A report published in the year 2008 shows that above 2.5 million of the total Gulf countries’ population are Keralites who send an annual amount of around U. S. D. 6.81 billion to their native state.
- Agriculture: Apart from that this state of south India produces around 97 % of the total pepper production in the country. The state even provides about 85 % of the nation’s total natural rubber. Some of the other major agricultural products of the state include cashew, coconut, coffee, tea as well as spices like cardamom, cinnamon, nutmeg and vanilla. Besides these, the state has got extensive fields used for the production of six hundred kinds of paddy.
- Tourism: The state being an exclusive place of backwaters and exotic sea beaches attracts tourist from national as well as international destinations. In addition to these, the beautiful hill stations, some of the renowned wildlife sanctuaries, national parks and Keralian architectural constructions help the state tourism to play a significant role in the economical development of Kerala.
- Infrastructure: With roads covering a total area of approximately 1, 45, 704Â kms, the state accounts for around 4.62Â km road per every 1000 people, which is much more than the national average of 2.59Â km. Increased by 5 % during the financial year of 2003 - 2004, these roads reflect the unique settlement style of the state. Apart from this, Kerala occupies the 2nd rank in regards to the generation of the diesel-based thermal power in India with more than 21% share in the national market.
- Alcohol: Alcohol forms one of the main contributor in the economy of this south Indian state. Kerala is the consumer of alcohol much more than any other Indian states. Post the banning of the shops of foreign liquors, Government of Kerala through K. S. B. C. (Kerala State Beverages Corporation) has got a monopoly over the sale of liquor in the state. The increasing sale of beer and liquor during the financial year 2010 – 2011 was estimated to reach around INR. 6, 700 crore. Thus, alcohol leads to an earning of high revenues since highest tax is levied by the state government on liquor.
Companies contributes to Kerala Economy and Business
To name a few of the Kerala companies listed in B. S. E. (Bombay Stock Exchange) that contributes to the development of business and economy in Kerala are:
- Accel Transmatic Ltd.
- V. T. Natural Products
- Cochin Minerals and Rutile Ltd.
- Dhanlaxmi Bank
- Eastern Traders
- E. S. A. F. Microfinance and Investments
- Federal Bank
- Geojit B. N. P. Paribas
- G. T. N. Textiles Ltd.
- Harrisons Malayalam
- Kerala Ayurveda Ltd.
- Kerala Solvent Extractions Ltd.
- Kitex Garments
- Manappuram General Finance and Leasing Ltd.
- Muthoot Capital Services Ltd.
- Muthoot Finance
- Nitta Gelatin India Ltd.
- Rubfila International
- South Indian Bank
- Sree Sakthi Paper Mill
- State Bank of Travancore
- Vertex Securities Ltd.
- V - Guard Industries Ltd.
