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Module I and IV Kerala Economy

The document discusses the structure of Kerala's economy, including its sectoral composition and changes over time. It notes that Kerala has transitioned from a traditional agrarian economy to a more modern service-based economy. The tertiary/service sector now contributes the most to Kerala's GDP at 70.3%, while the primary/agriculture sector's contribution has declined and now stands at 9.5%. Within sectors, the tertiary sector has seen the highest growth rate in recent years at around 11-18%, while the primary sector has grown more slowly or declined.

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0% found this document useful (0 votes)
3K views60 pages

Module I and IV Kerala Economy

The document discusses the structure of Kerala's economy, including its sectoral composition and changes over time. It notes that Kerala has transitioned from a traditional agrarian economy to a more modern service-based economy. The tertiary/service sector now contributes the most to Kerala's GDP at 70.3%, while the primary/agriculture sector's contribution has declined and now stands at 9.5%. Within sectors, the tertiary sector has seen the highest growth rate in recent years at around 11-18%, while the primary sector has grown more slowly or declined.

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Ashin Anish
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Module I and IV- Kerala economy

Ma Economics (University of Calicut)

Studocu is not sponsored or endorsed by any college or university


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Module I : Structure of Kerala Economy


Structural composition – Primary, Secondary and Tertiary Sectors – changes over
the years NSDP, GSDP and PCI. Contribution of productive vs. service sectors. Poverty
profile in Kerala.
1.1 Introduction
The State of Kerala, located in the south-west part of India formed in November 1,
1956 as part of the linguistic reorganisation of the Indian States by merging the three
Malayalam-speaking regions -the princely states of Travancore and Cochin and the
Malabar district of the Madras Presidency. Its land area is 38,863 sq. km, stretching 580
km in length and 30-130 km in breadth and is bordered by Karnataka to the north and
northeast, Tamil Nadu to the east and south, and the Arabian Sea on the west.
Thiruvananthapuram is the state capital. Kochi and Kozhikode are other major cities.
According to a survey by ‘The Economic Times’ five out of the ten best cities to live in India
are located in Kerala.
While in terms of area, Kerala forms only 1.275% of India, its population (in 2011)
of 33.3 million accounts for 2.76% of India’s population. Population density in Kerala is 859
persons per sq. km, one of the highest in the country (Third). This high population density
is often camouflaged by the spread of a lush green biotic environment. Moreover, the
population is spread across the State and as such there are no big urban agglomerations.
The biggest city of Kerala, Kochi (often referred to as Cochin), has a population of only
about 0.27 million. Kerala has three predominant religions. Christians and Muslims
account for a greater share than seen in other Indian States and even all-India. In the 2001
Census, they accounted for 19 per cent and 24.7 per cent of the population, respectively,
with the Hindus mostly contributing the rest. Christianity and Islam, as practised in Kerala
are specifically Keralite.
Ecology plays an important role in the Kerala economy by providing a diversified
natural resource base, enabling a large degree of occupational diversification.
Geographically, the region comprises three zones namely low land, mid land and high
ranges. The low land, where the population density is the highest, consists of sandy and
fertile soils of the river valleys, lakes and backwaters, providing the basis for fishing, rice
and coconut cultivation and horticulture. In the midland region, coconut, rice, cassava,
arecanut and cashew, along with rubber, pepper, and ginger on the slopes predominate.
The high ranges, where the population density is the lowest, and which once consisted
almost wholly of natural evergreen tropical forests, gave way to plantations of tea, coffee
and rubber during the colonial times. Over the past century, the high ranges have also
received migrant peasants, big and small, from the midland and coastal tracts.
The agro-climatic conditions in Kerala suit the cultivation of both cash crops and
food crops. Under the colonial initiative, however, given an enabling legislative framework
and market conditions, cash crops came to predominate. Agriculture forms the raw
material base for a number of agro-processing industries, such as coir, cashew, wood and
edible oil. These industries continue to occupy an important place, especially in terms of
employment. A small segment of large modern industries based on minerals, chemicals
and engineering have also come up, along with an increasing segment of small and
medium industries, some based on modern technology and management. A striking
feature of Kerala’s development experience is the growth of the service sector. Historically
too, this sector has been more pronounced in Kerala than in the rest of the country. The
largest shares of and employment are generated in the service sector. Kerala’s economy
is no longer predominantly agrarian. Kerala has an active political society compared to the
rest of India. There is a high degree of political activism, the consequences of which are
subject to differences of opinion. No single party has been able to form a Government of
its own since the formation of Kerala. Currently, two coalitions have been ruling the State;
neither of them having managed to win a consecutive term. While one is led by the Indian

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National Congress, the other is led by the Communist Party of India (Marxist). There are
also parties that do not belong to either of the two coalitions, but these are yet to gain any
electoral representation in the State Assembly.
1.2 Structural Composition in Kerala Economy
Kerala completes more than 56 years of her experience as a state as well as a
regional economy in 2013. Kerala has experiencing a wide variety of change in its
productive sectors and other dimensions of the economy. Kerala economy changed from
a traditional backward agrarian economy to modern growing economy. Kerala economy
faces structural changes since its formation in 1956. While the real sectors remained as
sluggish in growth rate, the service sector achieved a high growth path. There will be
changes not simply in traditional indicators like State Domestic Product and Per capita
Income but also in other socio-economic indicators.
1.3 Sectoral Distribution of Gross State Domestic Product
During 2011-12, the contribution from primary, secondary and tertiary sectors to the
GSDP at constant prices (2004-05) was 9.48 per cent, 20.22 per cent and 70.30 per cent
respectively. At current prices, the primary, secondary and tertiary sectors contributed
15.11 per cent, 21.05 per cent and 63.22 per cent respectively to the GSDP during 2011-
12 This difference in sectoral share between constant and current prices shows that
inflationary trends in the primary sectors are much higher than in the secondary and
tertiary sector.
While analysing the sectoral distribution of state income it is seen that the
contribution from primary sector has been decreasing and while that of the tertiary sector
has been increasing. The contribution of secondary sector remained almost stagnant.
Sectoral distribution of GSDP during 1960-61to 2011-21 are shown in the Table 1.1

Table 1.1
Sectoral Distribution of GSDP at Constant Prices
S Sectoral Shares
e 1 1 1 1 2 2 2 2
c 9 9 9 9 0 0 0 0
t 6 7 8 9 0 0 1 1
o 0 0 0 3 0 9 0 1
r - - - - - - - -
s 6 7 8 9 0 1 1 1
1 1 1 4 1 0 1 2
P 5 4 3 3 2 1 1 9
ri 6 9 9 2 5 2 1 .
m . . . . . . . 4
a 0 4 2 2 3 0 0 8
r 3 3 0 0 6
y
S 1 1 2 2 1 2 2 2
e 5 6 4 0 9 0 0 0
c . . . . . . . .
o 2 3 3 3 5 7 1 2
n 7 2 0 0 3 2
d
a
r
y
T 2 3 3 4 5 6 6 7
e 8 4 6 7 5 7 8 0

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r . . . . . . . .
ti 8 2 4 4 2 3 8 3
a 0 5 0 0 1 0
r
y
T
1 1 1 1 1 1 1 1
o
0 0 0 0 0 0 0 0
0 0 0 0 0 0
t 0 0
a
. . . . . . . .
0 0 0 0 0 0
l 0 0
0 0 0 0 0 0 0 0
Source: Department of Economics and Statistics

1.4 Growth of the Sectors


The analysis of annual sectoral growth in GSDP showed that tertiary sector
recorded the highest rate of growth of 11.81% in 2011-12 at constant price (2004-05)
followed by secondary sector (7.03%) and primary sector (-0.73%).They are given in Table
1.2.
At current prices, the tertiary sector recorded a growth rate of 17.96 %, primary
sector 15.48% and secondary sector 15.18% in the year 2011-12.
Table 1.2
Sectoral Growth Rate at Constant Prices (In %)
Sect Sectoral Growth Rate
ors 2008 2009 2010 2011
-09 -10 - -
11(P 12(Q
) )
Prim 2.18 -0.55 -5.06 -0.73
ary
Seco 0.30 7.35 8.38 7.03
ndar
y
Terti 8.07 11.6 10.2 11.8
ary 7 6 1
Total 7.22 9.17 8.05 9.51
Source: Department of Economics and Statistics
1.5 Changes in State Domestic Product
There is a definite change in the amount and rate of growth of SDP at both constant
and current prices. The constant price shows the original picture of the real growth of
goods and services it is shown in Table 1.3. Not simply there is change in absolute amount
of SDP; but there are changes in the growth rate of SDP indicator at constant prices which
is given in Table 1.4.
Table 1.3
State Domestic Product at Constant Prices
Years SDP(in crores)
1950-51 334 (at 1960-61 Prices)
1960-61 432 (at 1960-61 Prices)
1970-71 629 (at 1960-61 Prices)
1970-71 1,254.64 (at 1970-71 Prices)
1980-81 1,571.33 (at 1970-71 Prices)
1980-81 3,822.73 (at 1980-81 Prices)

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1990-91 5,262.34 (at 1980-81 Prices)


1993-94 23,851.07 (at 1993-94 Prices)
1995-96 26,947.47 (at 1993-94 Prices)
1999-00 32,716.15 (at 1993-94 Prices)
2000-01 33,565.16 (at 1993-94 Prices)
1999-00 62,034.31 (at 1999-00 Prices)
2000-01 64,818.47 (at 1999-00 Prices)
2004-05 84,950.67 (at 1999-00 Prices)
2005-06 92,741.77 (at 1999-00 Prices)
2010-11 1,91,866.76 (at 2004-05 Prices)
2011-12 2,10,107.17 (at 2004-05 Prices)
Source: Various Issues of Economic Review
Table 1.4
Growth Rate in SDP
Period Growth Rate
1970-79 to 79-80 (at 1980-81 1.97%
Prices)
1980-81 to 89-90 (at 1980-81 2.87%
Prices)
1990-91 to 99-00 (at 1980-81 6.12%
Prices)
2000-01(at 1993-94 Prices) 2.6%
2001-02 (at 1993-94 Prices) 2.8%
2002-03 (at 1993-94 Prices) 7.3%
2003-04(at 1993-94 Prices) 7.3%
2005-06(at 2004-05 Prices) 10.09%
2010-11(at 2004-05 Prices) 8.05%
2011-12 (at 2004-05 Prices) 9.51%
Source: Various Issues of Economic review

According to the statistics published by the Department of Economics and Statistics,


the quick estimate of gross state domestic product (GSDP) at factor cost at constant prices
(2004-05) was Rs. 2, 10,107.17crore in 2011-12 as against the provisional estimate of Rs.
1,91,866.76 crore during 2010-11, registering a growth rate of 9.51 percent in 2011-12
compared to 8.05 percent in 2010-11. At current prices, it was estimated at Rs.
315205.crore (quick estimate) in 2011-12 against the provisional estimate of Rs.
269473.79crore in 2010-11. (See Table: 1.5)
29 Table 1.5
State Domestic Product and Per Capita Income of Kerala
Income (In Crore) Growth Rate (%)
Item
2009-10 2010-11 2011-12 2010-11
(P) (Q) (P)
GSDP
a)At Constant Price 177571.35 191866.76 210107.17 8.05
(2004-2005)
b) At Current Price 231998.67 269473.79 315205.67 16.15
NSDP
a)At Constant Price 157122.70 170236.91 186997.59 8.35
(2004-2005)
b) At Current Price 206069.79 239425.85 280870.84 16.19

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PCI (Rs)
a)At Constant Price 51897 55667 60536 7.26
(2004-2005)
b) At Current Price 67804 78183 90816 15.31
Source: Department of Economics and Statistics. P: Provisional, Q: Quick Estimate
1.6 District-wise Gross State Domestic Product
District wise distribution of Gross State Domestic Product at factor cost at current
prices shows that Ernakulam District continues to have the highest income of र 44129.38
crore in 2011-12 as against र 37836.28 crore in 2010-11 registering a growth rate of 16.6
per cent. At constant (2004-05) prices, this amounts to र 30286.66 crore during 2011-12
compared to र 27596.61 crore during 2010-11. But the district Wayanad is in lowest
position with the income of र 6294.25 crore in 2011-12 as against र 5376.12 crore in
2010-11 registering a growth rate of 17.08 per cent. At constant (2004-05) prices, this
amounts to र 3926.95crore during 2011-12 compared to र 3620.08 crore during 2010-11.
The highest growth rate in GSDP at constant price (2004-05) is with the district
Pathanamthitta (10.08) in 2011-12 and lowest in the same year is shown by the district
Idukki (7.66). The details are given in Table 1.6 below.
Table 1.6
District-wise Distribution of Gross State Domestic Product (र Lakhs)
District GSDP at Factor Growth Rate (%)
Cost
At At At At
Current Constant Current Prices Constant Prices
Prices Prices

2010-11 2011-12 2010-11 2011-12 2011-12


(P) (Q) (P) (Q)
hiruvananthapuram 2871463 3358011 2100157 2309934 16.94
Kollam 2041190 2385361 1427520 1559333 16.86
Pathanamthitta 1098843 1286345 785578 863525 17.06
Alappuzha 1723815 2015165 1241826 1361875 16.9
Kottayam 1880383 2202442 1324493 1450284 17.13
dukki 1037411 1210983 667287 716116 16.73
Eranakulam 3783628 4412938 2759661 3028666 16.63
hrissur 2570599 3010494 1889958 2082359 17.11
Palakkad 2082266 2433089 1453581 1582894 16.85
Malappuram 2152352 2519438 1491032 1624188 17.06
Kozhikode 2331326 2732062 1676121 1839750 17.19
Wayanad 537612 629425 362008 392695 17.08
Kannur 1956146 2293771 1394441 1528965 17.26
Kasaragod 880344 1031041 613013 670134 17.12
GSDP 26947379 31520567 19186676 21010717 16.97

Source: Economic review 2012. P - Provisional, Q - Quick Estimate


1.7 Per Capita State Income
As per the quick estimates in 2011-12, the per capita gross state domestic product
at constant (2004-05) prices was Rs.60, 536 against the provisional estimate of Rs. 55,667
in 2010-11, a growth of 8.75% in 2011-12. At current prices, the per capita GSDP in 2011-

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12 is Rs. 90816 registering a growth of 16.16% over the estimate of Rs. 78183 in 2010-11.
(See for details Tables: 1.7 and 1.8)
Table: 1.7
Per Capita Income at Constant Prices
Years Per capita Income (in Rs.)
1950-51 247 (at 1960-61 Prices)
1960-61 259 (at 1960-61 Prices)
1970-71 298 (at 1960-61 Prices)
1970-71 594 (at 1970-71 Prices)
1980-81 621 (at 1970-71 Prices)
1980-81 1,508 (at 1980-81 Prices)
1990-91 1,815 (at 1980-81 Prices)
1993-94 7,988 (at 1993-94 Prices)
1995-96 5,748 (at 1993-94 Prices)
1999-00 10,409 (at 1993-94 Prices)
2000-01 10,809 (at 1993-94 Prices)
1999-00 19,736 (at 1999-00 Prices)
2000-01 20,448 (at 1999-00 Prices)
2004-05 25,687 (at 1999-00 Prices)
2005-06 27,746 (at 1999-00 Prices)
2010-11 55,122 (at 2004-05 Prices)
2011-12 60,536 (at 2004-05 Prices)
Source: Various Issues of Economic review

Table 1.8
Growth Rate in PCI at Constant Prices
Year Growth Rate
1994-95(at 1993-94 6.61%
Prices)
1995-96(at 1993-94 -32.50%
Prices)
1996-97(at 1993-94 56.35%
Prices)
1997-98(at 1993-94 1.02%
Prices)
1998-99(at 1993-94 5.955
Prices)
1999-00(at 1993-94 5.81%
Prices)
2000-01(at 1993-94 4.41%
Prices)
2010-11(at 2004-05 7.26%
Prices)
2011-12(at 2004-05 8.75%
Prices)
Source: Various Issues of Economic review
1.8 District-wise Per Capita Income
Growth rate at current prices does not eliminate the inflationary impact. When
district level growth rate at constant prices, we compared the “real” GSDP growth rate may
be observed as the inflationary impact has been eliminated. Table.1.9 shows that in 2011-

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12, the districts of Thrissur, Thiruvananthapuram, Pathanamthitta and Ernakulam had a


much higher growth rate than the average growth in per capita income. Idukki and
Wayanad showed much lower growth in per capita income than the state average of
8.75% in 2011-12.
The analysis of district wise per capita income shows that Ernakulam district stands
first with the per capita income of र 89131 at constant (2004-05) prices in 2011-12 as
against र 81768 in 2010-11. The Malappuram district stands the bottom position with the
per capita income of र 39005 at constant (2004-05) prices in 2011-12 as against र 36068
in 2010-11. The district wise per capita income with corresponding rank and growth rate is
given in Table 1.9
Table 1.9
District-wise Per Capita Income at Constant (2004-05) Prices
2011-12 Rank
(P) र
65419 4
56132 10
66940 3
60989 6
69259 2
60127 7
89131 1
64629 5
55365 11
39005 14
58498 9
44123 13
59354 8
50122 12
60536
Source: Department of Economics & Statistics P: Provisional Q: Quick
1.9 Contribution of Productive Vs Service sectors
The primary and secondary sectors together form the commodity producing or
productive sectors of the economy while the tertiary sector constitutes the non commodity
producing or the service sector.
There has been a lot of discussions are carried out related with relative importance
and contributions of these two sectors namely productive and service sectors in Kerala
economy. There is no doubt that the productive sector in Kerala is relatively stagnant or
even it declined in its contribution to the economy. Some writers argued that the paradoxes
in Kerala’s development are closely associated with the spurt in the service sector

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development. It is because of this reason there is the reduction in poverty rate compared
to the national average and also high urbanisation has occurred in Kerala. The primary
and secondary sectors together contributed 81.2% to the GSDP at constant price in 1960-
61 while it declined to 29.7% in 2011-12. This change is shown in the Table: 1.10. Beyond
doubt we can say that the service sector is the driving seat of the Kerala economy since
1980’s. The growth rate of the service sector is also much higher in Kerala economy
compared to the commodity producing sectors.
The growth of the service sector is actually at the expenses of the commodity
producing sectors. As a result there are lot of problems occurred in the Kerala economy.
The agriculture sector is in a setback. There should be reduction in food grains production,
fall in work participation rate, hike in unemployment rate especially educated
unemployment, and movement of people to outside Kerala. Now the service sector
oriented growth of the Kerala economy is questioned in relation to its long run
sustainability. There is over dependence for other states for Kerala’s day today food items.
Within the productive sector the industrial sector shows a stagnant growth rate.
Table: 1.10
Contribution of Productive & Service sectors to GSDP at Constant Prices (In %)
Period Productive Sector Service Sector
1960- 81.2 28.8
61
1970- 65.8 34.2
71
1980- 63.60 36.40
81
1993- 52.55 47.45
94
2000- 44.80 55.20
01
2010- 31.19 68.81
11
2011- 29.70 70.30
12
Source: Department of Economics & Statistics
1.10 The concept of Poverty
Poverty is a plague as it is prevalent in almost all countries in the world and it has
many faces and dimensions. Therefore it is difficult to define the concept poverty in
precise. Poverty is always defined according to the conventions of society in which it
occurs. But in the recent years, the concept of poverty has been refined and made more
comprehensive. The New World requires better and more scientific ways to assess the
concept of poverty in the society. Now its multidimensional aspect is recognized and uses
a multidisciplinary approach to assess poverty. Poverty is not simply a social phenomenon
but also include economic, political, historical, geographical and cultural aspects.
Various attempts have been made by societies to define poverty. In human terms
poverty means little to eat and wear, and in economic terms the poverty means the inability
to attain a minimum standard of living. It is natural to view poverty as the failure to meet

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the basic requirements to maintain a minimum standard of living. This minimum standard
of living may vary from society to society. While biological requirement and nutritional
norms provide the most elementary concept of a minimum standard of living, modern
understanding of poverty requires other factors such as school enrolment, infant mortality,
immunization, malnutrition, women empowerment, overall standard of living, asset holding
etc.
Poverty can be defined as a social phenomenon in which a section of the society is
unable to fulfill even its basic necessities of life. In India the generally accepted definition
of poverty emphasizes minimum level of living rather than a reasonable level of living. In
economics there are two important classification of poverty; Absolute Poverty’ and
‘Relative Poverty’.
1.11 Absolute Poverty and Relative Poverty
Absolute Poverty is the sheer deprivation or non-fulfillment of bare minimum needs
of existence- of food, shelter, health or education. It is based on the absolute needs of the
people and people are defined as poor when some absolute needs are not sufficiently
satisfied. Hence according to this type poverty is treated as deprivation. Most of the
developing countries are experiencing such type. An absolute poverty line is based on the
cost of minimum consumption basket based on the food necessary for a recommended
calorie intake.
Relative Poverty is related with high income countries, where people are poor
because they cannot maintain or equivalent to others in the society. There should be
differences in living standards among the people. It reflects economic distress, despair and
dissension that stem from serious inequalities in income and wealth .The relative poverty
line varies with the level of average income. Relative poverty is based on inequality and
differences in standard of living. According to the relative concept of poverty, people are
poor because
From this classification we know that poverty is not inequality. Poverty is only one of
the evil consequences of inequality. Whereas poverty is concerned with the absolute
standard of living of a part of the society i.e.; the poor, inequality refers to relative living
standards across the whole society.
1.12 Poverty Line
Poverty line is the most widely used measure for assessing poverty. Under this
method, people are counted as poor when their measured standard of living is below a
minimum acceptable level-known as Poverty Line. The poverty line in India is defined as
‘the level of private consumption expenditure, which ensures a food basket that would
supply the required amount of calories’. Actually in India the Planning Commission
estimates the poverty on the basis of Calorie intake. By considering age, sex, activity etc.,
Indian Council of Medical Research (ICMR) proposes 2400 calorie intake for the rural
person per day and 2100 calorie per person per day in urban. The calorie requirements in
the rural areas is higher because people engaged in heavy work more in rural areas than
in urban areas.
Poverty may be defined as the inability to attain the minimum standard of living in a
society. The poor are those who are unable to achieve basic facilities like food, safe
drinking water and shelter, access to information, education, health care, social status,
political power or even the opportunity to develop meaningful connections with other
people in the society. This condition is absolute poverty. Relative poverty is the condition of
having fewer resources or less income than others within a society or country or compared
to worldwide averages.
The existing poverty measure of Planning Commission of India is based on the
recommended nutritional requirements of 2400 calories/person/day in rural areas and

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2100 calories/person/day in urban areas. The official percentage of population below


poverty line is estimated based on the household consumer expenditure survey carried out
by National Sample Survey Organization (NSSO). Former methods of poverty estimation
viz; URP method of estimation and MRP method of estimation have been replaced by
Tendulkar method of estimation from NSSO 66th round onwards.
1.13. Poverty Estimation of Kerala after its Formation.
Compared to innumerable poverty estimates at the national level, only a very limited
number of estimates at the state level are available. However, some national estimates
provide state wise data of poverty from which the extent of poverty in Kerala is available.
According to Dandekar and Rath estimates, the poverty in Kerala is highest. To their
estimates 90.75 and 88.89 percent of the rural and urban population were respectively
below the poverty line during 1960-61. These figures were said to be an exaggerated
figures as the estimation did not take into account certain locally significant items like
tapioca, banana, coconut and fish.
The study of C.D.S came as a sharp reaction against the findings of Dandekar and
Rath. According to C.D.S estimates, 47 percent of the rural and 54 percent of the urban
population were undernourished during 1961-62.
Ahluvalia has estimated the state wise rural poverty ratio for the period 1957-58 to
1973-74.According to him 59.6 percent, 57.8 percent, 62 percent and 49.3 percent of the
rural population Kerala were below poverty line during 1957-58, 1960-61, 1970-71 and
1973-74 respectively.
Mahendra Dev has estimated the state wise poverty ratio on the basis of NSS data
for the period 1961-62 to 1986-87. His study is based on the monthly percapita
consumption expenditure of Rs.15 at 1960-61 prices. The estimate shows that during
1961-62, 49.7 percent of the rural people were below poverty line in Kerala. For the year
1970-71this percentage was 61.8 and this has declined to 20.9 percent during 1986-87.
Gourav Datt and Martin Ravallion have estimated the state wise poverty ratio for
the year 1983 on the basis of NSS data. They have considered monthly percapita
consumption expenditure of Rs.89 as the poverty line. They found that 37.76 percent of
urban and 39.07 percent of the rural people were below poverty line in Kerala in the year
1983.Thus the authors estimated that 38.82 percent of the total populations in Kerala were
below poverty line.
Table 1.11
Poverty in Kerala and India
und Poverty Rate (%) Poverty Rate (%)
(Kerala) (India)
59.73 54.88
52.22 51.32
40.42 44.48
31.79 38.86
25.43 35.97
12.72 26.10
15.00 27.50
66 12.00 29.80

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Source: Planning Commission, 2011 and NSSO Data


According to the Planning Commission’s estimate, 59.73 percent of the total Kerala
population was lived below poverty line during 1973-74 while it was only 54.88 % in all
India level in the same period. In the initial years of its formation the poverty ratio is high
compared to the all India average and later it comes down.
1.13 Poverty in Kerala
The existing poverty measure of Planning Commission of India is based on the
recommended nutritional requirements of 2400 calories/person/day in rural areas and
2100 calories/person/day in urban areas. The official percentage of population below
poverty line is estimated based on the household consumer expenditure survey carried out
by National Sample Survey Organization (NSSO). Former methods of poverty estimation
viz; URP method of estimation and MRP method of estimation have been replaced by
Tendulkar method of estimation from NSSO 66th round onwards.
The state specific poverty line 2009-10 for Kerala is fixed at monthly per capita
income of Rs. 775.30 which is above the poverty line of other states.The number of
persons below poverty line for Kerala is exhibiting a downward trend. It is possible to
achieve a zero poverty State in Kerala.
Till 1973-74, the incidence of poverty in Kerala, both rural and urban, was higher
compared to that in the rest of the country. In 1983-84, however, the relative position of
Kerala vis-à-vis India was reversed – the incidence of poverty in Kerala dropped below the
Indian average. This was possible because both rural and urban poverty in Kerala
declined steadily throughout the last four decades, and more sharply compared to the
decline in the country as a whole.

1.14 Trends in Rural and Urban Poverty in Kerala

Kerala has made substantial progress in reducing the incidence of both rural and
urban poverty.The percentage of rural population below poverty line was 59.19 percent
and urban poverty was 62.74 percent during 1973-74, but in India, 56.4 percent of the rural
and 49.00 percent of the urban population were lived below poverty line during the same
period .The combined poverty ratio was 59.79 percentage for Kerala and 54.44 percent for
India.
These figures declined to 12 percentage for rural people and 12.1 percentage for
the urban in Kerala for the period 2009-10 and with a combined poverty ratio of 12
percentage. In the same period the rural and urban poverty for India is 33.8percentage
and 20.9 percentage respectively with a combined poverty ratio of 29.80percentage. See
Table1.12 for details regarding this.
Table 1.12
Head Count Index of Poverty in Kerala and India
Rural Urban India
India
56.40 49.00

53.10 45.20

45.60 40.80
39.10 38.20

50.10 31.80

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27.10 23.60

28.30 25.70

33.80 20.90

Source: Planning Commission, GOI.


The magnitude of urban poverty has been increasing due to stagnation in
manufacturing industry resulting in lower income for urban dwellers. Due to rapid increase
in land price and construction costs, a good number of the urban people in Kerala are
forced to live in slums. Availability of drinking water and sanitation facilities is grossly
inadequate. Urbanization is an important aspect in the process of economic and social
development and is associated with many problems such as migration from villages to
towns, relative cost of providing economic and social services in the towns of varying
sizes, provision of housing for different sections of the people, provision of facilities like
water supply, sanitation, transport and power, pattern of economic development, location
and dispersal of industries, civic administration etc.
Only one-fourth of households in slums have electricity. The composition of the poor
has been changing. While rural poverty is getting concentrated in the agricultural labour
and artisan household, urban poverty results in casual labour households.

Reference
1. Centre for Development Studies – Poverty Unemployment and Development Policy -
Trivandrum
2. CDS and Kerala State Planning Board – Human Development Report Kerala -2007.
3. V.K. Ramachandran on Keralas Development Achievements. In Sen & Dreeze – India
Selected Regional Perspectives. - Oxford
4. Kannan. K.P – Health and Development in Rural Kerala. KSSP Kozhikode.
5. Kunhikannan. T.P & Aravindran K.P : Health Transition in Rural Kerala. KSSP Kozhikde
6. K. C. Sakaria et.al Kerala is Gulf Connections. –CDS Thiruvandapuram.
7. Various Issues of - Economic Review, Census Report, Statistics for Planning.
8. Rajan K (Ed) – Kerala Economy : Trends during the post Reform period – Serials
Publications

Multiple Choice Questions

1. The biggest city in Kerala is;


(a) Thiruvananthapuram (b) Kochi (c) Kozhikode (d) None
2. The productive sector include:
(a)Agriculture (b) Industry (c) Both (d) None
3. The total land area of Kerala is:
(a) 37,863 Sq Km (b) 36,863 Sq Km (c) 39,863 Sq Km (d) 38,863 Sq Km
4. In the size of land area Kerala was in the :

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(a) 20th position. (b) 25th position. (c) 21st position. (d) 15thposition.
5. The contribution of Primary sector to the GSDP in Kerala in 2011-12 is:
(a) 9.48 (b) 20.22 (c) 70.30 (d) None
6. The growth rate of Kerala’s primary sector in 2011-12 is:
(a) -0.73% (b) 7.03% (c) 11.81% (d) None
7. According to the 2011 census Kerala’s population is;
(a) 3,18,87,677 (b) 3,33,87,677 (c) 3,40,17,677 (d) 3,13,87,677
8. The district with highest GSDP in Kerala in 2011-12 is:
(a) Thiruvananthapuram (b) Ernakulam (c) Kozhikode (d) Wayanad
9. The growth rate of Kerala economy in 2011-12 is:
(a) 8.7 (b) 7.8 (c) 6.9 (d) 9.51
10.The growth rate of per capita income in the Kerala economy in 2011-12 is:
(a) 8.75 (b) 6.33 (c) 6.9 (d) 8.33
11. The contribution of the tertiary sector to the Kerala economy in 2011-12 is:
(a) 17.33 (b) 11.06 (c) 20.13 (d) 70.33
12.The largest contributor to the state economy in 2011-12 is:
(a) Primary (b) Secondary(c) Tertiary (d) None
13.The Poorest district in Kerala is::
(a) Ernakulam (b) Wayanad (c) Malappuram (d) Idukki
14. The Kerala state was formed in:
(a)1954 (b) 1955 (c)1956 (d)1957
15.The Lowest growth rate was shown by the district in Kerala in 2011-12 is:
(a) Ernakulam (b) Wayanad (c) Malappuram (d) Idukki
16.The District with highest PCI in Kerala is:
(a) Ernakulam (b) Wayanad (c) Malappuram (d) Idukki
17.The District with lowest PCI in Kerala is:
(a) Ernakulam (b) Wayanad (c) Malappuram (d) Idukki
18.The contribution of productive sector in Kerala is:
(a) 29.70% (b) 70.30% (c) 48% (d) 58%
19.The poverty ratio of Kerala in 2009-10 estimate is:
(a) 12.1% (b) 12% (c) 29.80 (d) None
20.The urban poverty ratio of Kerala in 2009-10 is:
(a) 12.1% (b) 12% (c) 29.80 (d) None

Answer Key
1. (b) Kochi

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2. (c)Both
3. (d) 38,863 Sq Km
4. (c) 21st position
5. (a) 9.48
6. (a) -0.73%
7. (b) 3,33,87,677
8. (b) Ernakulam
9. (d) 9.51
10.(a) 8.75
11. (d) 70.33
12.(c) Tertiary
13.(b)Wayanad
14.(c)1956
15.(d)Idukki
16.(a) Ernakulam
17.(c)Malappuram
18.(a) 29.70%
19.(b) 12%
20.(a) 12.1%

Module IV Feature of Development Sectors


a) Agriculture: Cropping pattern – Area and production of major crops – Paddy, Coconut,
Rubber - Land Reforms in Kerala, an overview.
b) Industry: Ownership and types of industries, traditional and modern.
c) Trade: Imports and Exports, major items.
d) Education:- Features of primary, secondary, higher & professional Education in Kerala -
New Challenges.
e) Health: Changes in the Health Profile of Kerala – Emerging issues.

Introduction

In the developmental process of a county various sectors in the economy has to


play a crucial role. In the modern world not only agriculture and industry are important but
also the external sector, education sector, health sector etc are to be worked together to

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get the momentum of development. In Kerala also these sectors are providing enough
dynamism for its growth and development.

(A) Agriculture

No doubt that Kerala has a glorious past in agriculture sector. Kerala is known for
its lush green landscape, its dense forest cover, abundant water bodies, long coastline and
its environment friendly culture. In 1960-61 the contribution of the primary sector to the
GSDP is 56% while it falls into 9.1% in 2011-12 (constant prices). The share has been
falling steadily over the years. There has been negative growth in this sector in all the
years of the XI th Plan except in 2008-09. In 2011-12 the growth rate of the sector is
-0.7%. The low availability of land and the high cost of other factors of production (farm
labour, fertilizer, etc), the excessive dependence on volatile international commodity prices
and the vagaries of the monsoon have resulted in low farm viability. However, this sector is
very significant from the point of view of rural livelihood options, food security, and raw
material for the food processing industries and for exports. It is this sector which gives
character to the State and various initiatives have been taken to promote crop
development, animal husbandry and fisheries in Kerala.
Performance of Agriculture Sector
The growth performance of the agriculture sector has been fluctuating across the
plan periods. It witnessed a negative growth rate of 1.3 percent in XI th Five Year Plan
while a positive growth of 1.8 percent in X th Plan period. The quick estimate of 2011-12
indicated a negative growth of 1.6 percent over the previous year. The provisional estimate
of agricultural income of the state again shows a negative growth of 4.5 percent during
2010-11.The crippling growth rate in agriculture as against a reasonably robust annual
growth rate of GSDP of the State is a cause of concern.
The agriculture in Kerala has undergone significant structural changes in the form of
decline in share of GSDP from 26.9 Percent in 1990-91 to 9.1 percent in 2011-12,
indicating a shift from the agrarian economy towards a service sector dominated economy.
The annual growth rate of agricultural income and share of agricultural GSDP for the last
five years are shown in Table 4.1.
Table 4.1
Annual Growth Rate in Agricultural Income &Share of Agricultural GSDP in Kerala
(Base 2004-05) *Provisional ** Quick
Year Rate of change over previous year Share of Agriculture and
Allied Sectors in GSDP
7-08 -2.2 13.2
8-09 2.1 12.7
9-10 -3 11.5
0-11* -4.5 10.1
1-12** -1.6 9.1

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Source: Directorate of Economics and Statistics


Reviving the agriculture sector require a quantum increase in productivity from the
current levels. This in turn requires technological breakthrough given the limited supply of
land and other structural rigidities, addressing low level of mechanization, shortage of
irrigation facilities, treatment of soil acidity and multiple nutrient deficiencies, plant health
management, remunerative prices and poor extension services.
Cropping Pattern in Kerala
Cropping pattern means the proportion of area under different crops at a particular
point of time. A change in cropping pattern implies a change in the proportion of area
under different crops. Kerala is one of the states in India where land is put to more
intensive use than anywhere else, mainly because of the lower per capita availability of
land in the state. Kerala’s cropping pattern is characterised by the domination of non-food
crops or cash crops like rubber, coconut, pepper, arecanut, cashew nut, spices and
plantation crops, which together account for more than 50% of the cropped area in the
state. The agro climatic condition of the state is also infavour to the cash crops. Under
colonial period the Britishers initiate the plantation crops and the Rajas of Travancore also
promotes such crops to tap the European capital, technology and man power. In cropping
pattern Kerala resembles with the agricultural economy of Sri Lanka.
Land Use Pattern
Data on land use pattern of Kerala for the year 2011-12 is given in Table 4.2. Out
of a total geographical area of 38.86 lakh hector, net sown area is about 53 per cent. The
net sown area has declined by 1.5 percent in the current year over 2010-11. The share of
total cropped area in the total geographical area is 68 percent. It marked an increase of
14296 hector during 2011-12 over the previous year while the net area sown declined by
31375 ha over the previous year. The share of land under non-agricultural uses out of total
geographical area is 10 per cent in 2011-12. There is an increase in the area under current
fallow (1028 ha) and increase in the area under fallow other than current fallow (5727 ha)
during 2011-12. The area under cultivable waste also increased by 3772 ha and barren
and uncultivated land declined by 2021 ha.
Table 4.2
Land use Pattern of Kerala (Area in Hector)
Classification of Land 2010-11 2011-12

Total Geographical Area 38862687 3886287


Forest 1081509 1081509
Land put to non agricultural uses 384174 399924
Barren & uncultivated land 19573 17552
Permanent Pastures and Grazing Land 153 85
Land under miscellanious tree crops 3690 3366
Cultivable waste 91665 95437
Fallow other than current fallow 51943 57670
Current Fallow 76028 77056
Net area sown 2071507 2040132
Area sown more than one 575954 621625
Total cropped area 2647461 2661757
Cropping intensity 128 130

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Source: Directorate of Economics and Statistics

Trend in Area, Production and Productivity of Crops and Performance

In Kerala total food grain production reached to 0.6 lakh MT during the respective
year. Data regarding the area, production and productivity of important crops grown in
Kerala are shown in Table 4.3 and Out of a gross cropped area of 26.6 lakh ha. in 2011-
12, food crops comprising rice, pulses and tapioca occupy 10.8 per cent. Kerala state
which had a low base in food production is facing serious challenges in retaining even this
meagre area. Kerala agricultural economy is undergoing structural transformation from the
mid seventies by switching over a large proportion of its traditional crop area which was
devoted to subsistence crops like rice and tapioca to more remunerative crops like banana
and plantations.

Table 4.3
Area, Production and Productivity of Principal Crops

SL No. Crops Area (Ha) Production (MT)


2010-11 2011-12 2010-11
1 Rice 213187 208160 522
2 Pulses 3824 3668 29
3 Pepper 172182 85335 45
4 Ginger 6088 6908 33
5 Turmeric 2391 2970 61
6 Cardamom 41242 41600 79
7 Arecanut 99834 104548 99
8 Banana 58671 59069 483
9 Other Plantains 49129 48747 353
10 Cashew nut 43848 54052 34
11 Tapioca 72284 74498 240
12 Coconut * 770473 820867 52
13 Coffee 84931 84413 65
14 Tea 36965 37028 57
15 Rubber 534230 539565 770
Source: DES
* Production of coconut in million nuts and productivity in numbers
During 2011-12, the area under rice declined by 5027 ha. In the case of pepper, the
area declined from 1.7 lakh ha in 2010-11 to 0.9 lakh hector in 2011-12. Area under
coconut was 7.7 lakh hector in 2010-11. But it increased to 8.2 lakh ha during 2011-12. All
the major crops except rice and pepper showed increase in area in 2011-12. Similarly
production of all major crops increased in 2011-12 except pepper. Substantial increase in

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production of rice is reported to the tune of 9 percent in 2011-12. In the case of coconut 12
percent increase in productivity is also reported.
With the use of the index numbers it is easier to know the trends over time with
respect to area, production, productivity of prominent crops. Index of area under food
grains reveals again a declining trend. The deteriorating trend is more visible in the case of
cereals. Area under pulses also shows a consistent fall during 2010-11 and 2011-12
periods. Despite of it, production and productivity levels improved in the respective
periods. Area under coconut, plantation crops, vegetables and fruits, cashew and tapioca
shows an increasing movement. Index of production of all these crops are expanded
during the period. The productivity index of cashew fell drastically during 2011-12 due to
rise in area coupled with comparatively small increase in production. Details are given in
Table 4.4.
Table:4.4
Index of Area, Production and Productivity of Prominent Crops in Kerala Base-
Average of Triennium ending 1993-94
Si No Crops 2009-10 2010-11

A All crops 87.88


Food Grains 43.07
Total Cereals 44.03
Pulses 19.95
C Non-Food Grains 88.58
Oil Seeds (Coconut) 89.07
Fibers(Cotton) 8.05
plantation Crops 117.1
Spices & Condimental 107.12
Fruites & Vegitables 71.76
Cashew nuts 44.82
Tapioca 55.11

A All crops* 97.73


B Food Grains 56.3
Total Cereals 56.84
Pulses 20.94
C Non-Food Grains 103.86
Oil Seeds (Coconut) 113.67
Fibers(Cotton) 6.49
plantation Crops 181.68
Spices & Condimental 143.21
Fruits & Vegetables** 99.97
Cashew nuts 38.36
Tapioca 96.03

A All crops 111.21


B Food Grains 130.71
Total Cereals 129.1
Pulses 104.97
C Non-Food Grains 117.24
Oil Seeds (Coconut) 145.98

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Fibers(Cotton) 80.58
plantation Crops 155.15
Spices & Condimental 133.69
Fruits & Vegetables 139.31
Cashew nuts 85.59
Tapioca 174.27
#Provisional *Production of Food and Non Food Grains **Production is not available for the year 2011-12
Source: Compiled from the Data of DES
Crop Wise Analysis
Rice
The area under rice has been declining consistently over the last several years.
After a long period of continuous decline, area under rice increased from 2.29 lakh ha in
2007-08 to 2.34 lakh ha in 2008-09 and sharply declined by 20828 ha in 2010-11 period
over to the previous year. During 2011-12, the area under rice declined by 5027 ha, but the
production has increased by 0.5 lakh MT. The production is increased due to increase in
productivity. The productivity increased to the tune of 11.5 percent. The Area, Production
and Productivity of HYV of Rice 2009-10 to 2011-12 can given in Table 4.5
Table 4.5
The Area, Production and Productivity of HYV of Rice 2009-10 to 2011-12
A Area Hector
2009-10 213706
2010-11 198222
2011-12# 194734
B Production MT
2009-10 564217
2010-11 498180
2011-12# 545498
C Productivity Kg/Ha
2009-10 2640
2010-11 2513
2011-12# 2801

#Provisional
In area wise the highest in Palakkad with 84058 Ha and lowest in Kozhikode with 883
Ha in 2011-12 estimate. In the case of production also the same districts keep the highest
and lowest position with 218063 MT and 1929 MT respectively. While in productivity
Pathanamthitta tops with 3208 Kg/Ha and Ernakulam in the bottom with 2140 Kg/Ha.
Coconut
Coconut based farming is the main stay of farmers of the State with a coverage of
8.2 lakh ha which occupies 40.2 per cent of the net cropped area. During 2010-11, area
and production of coconut in the State were declined by 1.2 percent and 6.7 percent
respectively. In 2011-12, the situation has improved with 6.6 percent expansion of area
and 12.4 percent upsurge in production over the previous year. The productivity levels of
coconut in Kerala also improved (5.5%) significantly.
The implementation of massive replanting of root wilt affected palms with seedlings
of elite palms could be improved immediately campaign mode. Generation of technologies
for different agro ecological situations may improve the level of adoption. Integrated
farming system with due emphasis on multi-tier cropping systems needs to be promoted in
different agro ecological situations for improving income of the farmers. Effective

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harvesting machines also need to be developed for promotion. Restructuring of the cluster
development programme is also essential for more effectiveness. The initiatives of the
Coconut Development Board for the skill development and formation of producers
societies is expected to address a basic issue in coconut development. Restructuring of
the cluster development programme is also essential for more effectiveness. The isolated
attempts of production of dwarf coconut seedlings and hybrids need to be scaled up
substantially with the support of Research and Development institutions. The
strengthening of procurement of coconut as well as promotion of Neera are essential for
the survival of the crop. In India, coconut is grown in an area of 2039.1 million ha.
producing 14006.5 million nuts with a per hectare productivity of 6869 kg of nuts in 2011-
12. Kerala’s share in area as well as production of coconut in the country is declining over
time. Kerala stands top by contributing 42.4 percent of total production of the crop in the
country. The Area, Production and Productivity of Coconut in Kerala and India is given in
Table:4.6.
Table:4.6.
The Area, Production and Productivity of Coconut in Kerala and India
SI.No. Year Area(000'Ha) Production(Million
Nuts)
Kerala India Kerala
1 2007-08 819 1903 5
2 2008-09 788 1895 5
3 2009-10 779 1900 5
4 2010-11 770 1896 5
5 2011-12 821 2039 5
Source: DES, CMIE and CDB
Pepper
In Kerala, the area under pepper is estimated at 0.85 lakh ha and production at 0.38
lakh MT during 2011-12. It is noted that the production has declined by 16.1 percent in the
respective period caused by erratic weather condition in growing regions and also on
account of structural issues. Insect pest problem of erythrina(standard),weather viability,
absence of alternate standards, poor productivity, fluctuating prices etc. compounded the
declining production.
The domestic price of pepper shows an upward trend from the mid of twenties and
reached to र 418.58 per kg in October 2012 and further declined in र 378.04 per kg. in
February 2013. Revitalization of pepper is essential for improving the livelihood of farmers.
A convergence approach is to be followed for implementing schemes by the Spices Board,
State Horticulture Mission and the Department of Agriculture. Reorientation of pepper
development scheme is required to regain the supremacy of the crop covering technology
and market support, revival of pepper samithies, good quality planting materials and
promotion of alternate standards.
During 2011-12, in India a total quantity of 26,700 tonnes of pepper valued
Rs.878.13 crore have been exported as against 18,850 tonnes valued र 383.18 crore in
the last year. Pepper production in India during 2011-12 is estimated at 48 thousand
tonnes. This stagnant nature of pepper production in recent years is mainly due to low
productivity and disease affected pepper gardens.

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World pepper production during 2011-12 was estimated at 298.4 thousand tonnes
compared to 329.7 thousand tonnes in 2010-11 period which shows a decline of 31.3
thousand tonnes. Vietnam holds the first position with 33.5 percent share of world pepper
production and where India contribute 16.1 percent share with 2nd rank.
Cashew
Area under the crop in Kerala, has been declining steadily from 1.25 lakh ha. in
1988-89 to 0.44 lakh ha. in 2010-11. During 2011-12, there is 23.3 percentage increase in
the area (0.54 lakh ha) and the production also surged to 0.37 lakh MT from 0.35 lakh MT
in 2010-11. The share of Kerala in the area under cashew in the country has come down
from 23 per cent in 1987-88 to 5.4 percent in 2011-12 and the corresponding decline in
share of production is from 31 per cent to 5.3 percent. Area and production are increasing
steadily in other producing states in the country. Even though the major share of area
under cashew comes from Andhra Pradesh (19.5%), Maharashtra is the leading producer
with 32.2 percent share in production during 2011-12; Maharashtra’s share was only 10
per cent in 1990-91. Kerala holds 4th position in cashew production.
In spite of operating special schemes for expansion of area under cashew, the
coverage has been steadily declining during the last two decades except in 2011-12.
Productivity of the crop, which was around 900 Kg./Ha., during late eighties has also
started declining from 1995-96 onwards, reaching 562 Kg/Ha., during 1998-99 and
thereafter hovering around 800 kg. In 2011-12, it further declined by 14 per cent (680
Kg/Ha.) over the previous year. Details are given in Table:4.7.
Table:4.7
The Area, Production and Productivity of cashew in Kerala and India
Year Area(000'Ha) Production(000'MT) Productivity(Kg/Ha)
Kerala India Kerala India Kerala
58.38 868 52.4 665
53.01 893 42.33 695
48.97 923 35.82 613
43.85 945 34.75 653
54.05 991 36.7 692
Source: DES, Cashew Export Promotion Council of India
Plantation Crops
Plantation crops in general are either export oriented or import substituting and
therefore assume special significance from the national point of view. It is estimated that
nearly 14 lakh families are dependent on the plantation sector for livelihood. Each of the
four plantation crops of South India has its distinct characteristics and economic problems.
Consequent to the removal of quantitative restrictions on import, plantation crops in
general are facing the threat of low quality imports.
Kerala has a substantial share in the four plantation crops of rubber, tea, coffee and
cardamom. These four crops together occupy 7.02 lakh ha, accounting for 34.4 percent of
the net cropped area in the state. Kerala’s share in the national production of rubber is

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87.3 per cent, cardamom 79 per cent, coffee 22 per cent and 7 percent in tea during the
year 2011-12.
Rubber
In Kerala the coverage under the crop in 2011-12 was 5.39 lakh ha, higher by 5335
ha. over the previous year. The production of natural rubber in Kerala during the period
was 7.89 lakh tonnes indicating 2.4 percent increase over the previous year. In 2011-12,
the productivity increased slightly to 1462 Kg/ha from 1442 Kg/ha in 2010-11. 87.3 percent
of total rubber production in the country was from Kerala in the current year of 2011-12.
The production of natural rubber in the country was 9.04 lakh tonnes in 2011-12,
registering a 4.9 per cent increase compared to 2010-11. The growth in production was
attributed by favourable climate and attractive price. India continued to be in the first
position in the world in productivity during 2011-12 also which increased to 1841 kg/ ha
from 1806 kg/ha during 2010-11 in terms of yielding area. The total consumption of natural
rubber in 2011-12 was 9.64 lakh tonnes with a growth of 1.8 percent as against 9.47 lakh
tonnes during 2010-11. The import of Natural Rubber in the country up surged to 2.14 lakh
tonnes in 2011-12 from 1.90 lakh tonnes in 2010-11. While export of Natural Rubber during
2011-12 declined to 27145 tonnes from 29851 tonnes in the previous year.
The global Natural rubber production was also marked an increase of 5.75 lakh
tones in 2011-12 and estimated at 109.74 lakh tonnes, which was 103.99 lakh tonnes in
the previous period. All the major producing countries reported increase in crop, led by
Thailand with a share of 30.9 percent share in the total world production, followed by
Indonesia (27.2%) and Malaysia (9.1%). India holds only 4th position (8.1%) in this regard.
Coffee
The area under coffee in Kerala was 0.84 lakh ha out of 4.09 lakh ha in the country
during 2011-12, which works out to around 21 per cent. The percentage share of area
under coffee is highest in Karnataka ( 56.1%). The share of Kerala in production is around
22 per cent during 2011-12. Major variety grown in Kerala is Robusta with a share of 97.1
per cent in planted area. Production of coffee during the year was only 0.68 lakh MT
against 3.14 lakh MT for the country. Productivity of the crop in terms of bearing area in
Kerala is 808 kg/ha which is lower than the national level of 852 kg/ha during 2011-12.
Even though the area under coffee registered a slight decline during the period, the
production has recorded 3.8 percent increase as against the previous year. Domestic
coffee production for the year 2011-12 is more than 0.12 lakh tonnes compared to the
previous year. Among the States, Kerala stands next to Karnataka which produces 70.4
percent of total coffee production.
Global coffee production during 2011-12 was estimated at 131.9 Million bags
compared to 134.2 Million bags in the previous period. The decline in crop was reported
from South American countries mainly Brazil (-4.6 Million bags) and Columbia (-0.7 Million
bags). Brazil’s position remained top in the world coffee scene with a share of 33 percent
even there is a fall in the crop during the period. Vietnam occupies 2nd position with 15.2

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percent share and Indonesia (6.3%) retained its 3rd place in the world coffee production.
India slipped to seventh position (4%) , despite increase in production.
Tea
Against the total area of 5.8 lakh ha under tea in the country Kerala accounts for
only 0.37 lakh ha 2011-12. Area under South India is estimated as 1.2 lakh ha in the
period. In respect of total production of tea in India, the share of Kerala is 6.9 percent in
2011-12. There is a slight increase in production of tea in Kerala and it ranged from 0.57
lakh MT in 2010-11 to 0.58 lakh MT in 2011-12.
During 2011-12, slight increase in world tea production was reported i.e., 4217.1
M.kg. compared to 4162.5 M.kgs in the previous year. This increase was recorded from
the two major producing countries, viz. China (74.9 M.Kgs) and India (21.9 M.kgs). In
India, tea production during 2011-12 was placed at 988.3M.kgs against 966.4 MKgs in the
previous year. During this period, the share of India is 23.4 percent in the World tea
production, occupying 2nd position after China (36.8% ).
Cardamom
Kerala accounted for a major share (78.8% ) in the total cardamom production in
the country. Karnataka and Tamilnadu contributed 14.7 percent and 6.5 percent share
respectively. In Kerala, the area under cardamom is 0.42 lakh ha comprising 59.2 percent
of total area of crop in the country during 2011-12. The production has increased from 0.08
lakh MT to 0.10 lakh MT in the respective year.
The price of cardamom in domestic market was Rs.1013 per kg. in 2010-11, which
further declined Rs.614 per kg. in 2011-12 and slightly increased to Rs.677.59 per kg in
February 2013. Remunerative prices are required for the development of crop in the state.
During 2011-12, India produced 12.98 thousand tonnes of Cardamom with an
increase of 2.60 thousand tonnes compared to 10.38 thousand tonnes in the last year.
Area under cardamom in the country is 0.71 lakh ha during this period.
Land Reforms in Kerala
Land reforms being the State subject, considerable options have been left to the
State governments. The Land reforms in Kerala is one of the most radical and egalitarian
measures resorted by the government of Kerala in the agricultural front. It was considered
as an important feature of the Kerala’s unique development experience and a model to
other states of India. Of the three regions that made Kerala state in 1956- Travancore,
Cochin and Malabar- Malabar had the greatest struggle over land rights where the most
oppressive land tenure systems exist.
Objectives of land Reforms in Kerala
1. Abolition of intermediaries between the state and the tiller.
2. Conferment of security of tenure on cultivating tenants.
3. Regulation of rent.
4. Consolidation of holding.
5. Establishment of cooperative farming.
Different Land Reform Measures after the Formation of the State
After the formation of the Kerala state on 1st November 1956 by rejoining
Travancore, Cochin and Malabar the tempo of land reform measures was accelerated.
1. The Kerala Stay of Eviction Proceeding Act (1957): This act was intended to
maintain the status quo in land relations till comprehensive reform measures could be
undertaken.
2. The Kerala Land Tax Act (1957): This act was to extend the basic tax system of
assessment to Malabar which up till then was part of the erstwhile Madras state. This act

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removed most of the tenure disparities arising from the modus operandi of the different
modes of land revenue and generally helped the cultivators.
3. The Kerala Conservancy Act: It was enacted to check encroachment on
government lands.
4. The Kerala Relinquishment Act: It legalise the relinquishment of lands by owners
in fovour of the government.
5. The Kerala Agrarian Relations Bill: This was the most revolutionary measure in
the field of land reforms that the state had ever undertaken. This was necessitated
because of the failure of the initial measure.
6. The Kerala Agriculturists Debt Relief Act (1958): Helped to the agriculturists who
are in debt.
7. The Kerala Tenants Improvement Act (1958): This act benefited the agriculturists
of the whole state, provided compensation at the rate of 15 times the net annual yield for
trees planted by tenants and the actual value for permanent structures put up by them,
even if there was a contract to the contrary stipulated in the deep providing lease or Otti.
8. The Kerala Agrarian Reforms Act (1960): This act widened the definition of
plantations, and consequently contiguous land interspersed with agricultural land within
the boundaries of the plantations were made part and parcel of the plantations and those
Kudiyans who had homesteads in the plantation area were brought under the mercy of the
plantation owner. The act exempted the land belonging to religious, charitable and
educational institutions of public nature, or a public trust from the purview of the ceiling.
The definition of small holder was broadened and he was defined as one who had rights in
less than 10 acres of double crop wet land but possessed only less than 5 acres of land.
Under this act compensation is provided to landlords who surrender the surplus land to the
state. This act was not effectively implemented as the Kerala High Court declared it to be
unconstitutional.
9. The Kerala Land Reforms Act (1963): This act came into force on 1-4-1964 and
enacted by the Congress Government. The Kerala Land Reforms Act superseded The
Kerala Agrarian Reforms Act, 1960 implemented by the first communist ministry. The
Kerala Land Reforms Act is the foremost of the land legislation. The Kerala Land Reforms
Act laid down that no family or adult unmarried person shall own or hold more than 12
standard acres subject to a minimum of 15 acres and a maximum of 37 acres. The 1964
Act reduced the maximum area into 36 acres.
It gave absolute fixity of tenure to the tenants of a Kudikidappu and fixity of tenure
to others subject to the landlord’s right of resumption for personal cultivation. Resumption
was allowed only for extension of any place of public religious worship and for the
construction of residential buildings by land owners actually needed it and for self-
cultivation. The tenants were given the right of purchase of the superior interest in their
holdings. According to this act the enhancement of rent was left to contracts between the
landlords and tenants. The act also created land boards and land tribunals for
implementing the various provisions of the act. Special protection was given to the
landlords who owned small holdings keeping in view that the interests of the tenants do
not suffer. The act retained certain conditions for eviction such as gross neglect and
mismanagement on the part of tenant or for the landlord’s direct operation of the land for
himself.
10.The Kerala Land Reforms (Amendment) Act (1969): The Kerala Land Reforms
Act, 1963 failed to give maximum benefits to the Kudikidappukars and actual cultivators of
land. By taking into account the actual difficulties in the implementation of the act, the
Kerala government has introduced another revolutionary bill which is termed as the Kerala
Land Reforms (Amendment) Bill. This bill was passed in 1969 and came into force in 1st
January 1970 with the following objectives.
(a) To grant more benefits to tenants and Kudikidappukars.

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(b) To include certain classes of cultivators who do not fall within the category of
tenants.
(c) To provide for the compulsory vesting of the rights of the landlords and other
intermediaries with the government on a date to be notified by the government.
(d) For the assignment of those rights to the cultivating tenants and to provide for the
constitution of a new fund of not less than Rs. 10 million called the Kudikidappukars’
Benefit Fund.
In order to implement the provisions of the bill, land tribunals are established in
each and every Taluk in the state.
Measures of Land Reforms in Kerala
The measures of land reforms in Kerala include abolition of intermediaries, tenancy
reforms and land ceiling.
(1) Abolition of Intermediaries
The Land Reforms Act has abolished once for all landlordism and intermediary
tenures in the state. The elimination of the intermediaries was a pre-requisite for the
reorganization of agriculture. Therefore top priority was given to abolition of these
intermediaries. With the abolition of intermediaries lakhs of ‘Kudiyans’ and
‘Kudikidappukars’ became the land owners and the exploitation by the land lords was put
to an end. The property rights of the landlords were acquired by the state on the payment
of the compensation. With the disappearance of the semi-feudal land ownership system,
the cultivators now breathe the air of freedom and equality.
(2) Tenancy Reforms
The progress of implementation of land reforms has been commendable in the
state. The provisions relating to the tenancy reforms and the purchase of Kudikidappu
Rights have been almost implemented in full. The Land Tribunals received more than 86
lakhs of application from tenants and ‘Hutment’ dwellers. Since the commencement of the
implementation of land reforms, about 16 lakhs out of 25 lakhs ‘Kaivasakudiyanmars’ had
secured ‘Janmavakasam’. Lakhs of tenants have not been paying rent because they have
become defacto owners of the land they till. Evictions and other type of exploitation have
become merely stories of the past.
(3) Land Ceiling
The land ceiling prescribed in the Kerala Land Reforms Act 1969 is 5 standard
acres for the adult unmarried person, or a family consisting of two or more adult members
but not more than five, with one additional standard acre for each additional member in
excess of five. In case of companies and associations, the ceiling is 10 standard acres. As
the social conditions, productivity of land, nature of the crop grown etc vary in different
parts of the state, on an average one and half ordinary acres are considered equivalent to
one standard acre. The maximum a family can own is fixed at 20 ordinary acres. The
excess land would be taken over by the government for distribution among landless
labourers and other weaker sections of the community.
Achievements of Land Reforms
1. Absentee landlordism was abolished.
2. Change the structure of ownership and operation of land holdings.
3. Surplus land is distributed to the people.
4. All tenants and hutment dwellers have been made owners of the land.
5. Reduce inequality among the people.
6. Helped to social justice.
7. Reduce poverty among the people.
8. Reduce the number of landless people.
9. Fair rent was fixed.
10.Land ceiling was fixed.
11. Improve the status of the tenants.

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Defects of Land Reforms


1. It leads to the subdivision and fragmentation of land holdings.
2. Reduction in total agricultural land
3. Still the slogan ‘Land to the tiller’ is not achieved
4. Land is transferred to non farmers especially to teachers, layers. Shop keepers,
Layers, political leaders etc.
5. No substantial improvement in production and productivity.
6. Agricultural land is changed into non agricultural purposes.
7. Change in cropping pattern.
8. Misinterpret land reform laws.
9. Delay in redistribution of surplus land.
10.Political interference.
(B) INDUSTRY
History of Industrialisation in Kerala
From the days immemorial, traditional industries like mat 'weaving, handlooms,
bamboo products etc. were popular in different parts of Travancore, Cochin and Malabar.
The first textile factory was started at Quilon in 1881 by an American group. Subsequently,
coir, tea and rubber factories flourished in different parts. While we trace the industrial
development of Travancore, The golden era of Kerala’s industrial development was the ten
year period ending 1947, when Sir C.P. Ramaswamy Iyyer ruled the state of Travancore
as its Diwan. He realised the fact that capital and skilled labour are not sufficiently
available in Travancore or nearby states and hence he invited outsiders to start industries
in Kerala. Even foreign companies reacted favourably to the call given by him. For
instance ‘Alakan’ a Canadian Company expressed their willingness which led to the
starting of ‘Indian Aluminium Company’ at Eloor. The other major industries started during
the days of Sri C.P. were Travancore Sugars and Chemicals Limited, Ogale Glass factory,
Fertilisers and Chemicals Travancore Limited (FACT), The Indian Rare Earths (IRE)
Travancore Rayons, Travancore Titanium Products Limited (TTP), Travancore Cements,
Travancore Electro-Chemicals Industries, The Punalur Paper Mills, Kerala Ceramics,
Indian Aluminium Company, Luxmi Starch western Indian Plywood etc. The important
industries flourished in Cochin State were Coconut oil and Textiles. One of the important
textile mills in Cochin State was Pushpagiri Weaving Mills started at Trichur in 1908, the
present Sitaram Textiles.
An industrial survey was conducted in 1909 by Cochin state government, followed
by an economic survey in 1920. The survey committee suggested the starting of an
Industrial Advisory Board. As per this recommendation, the Board was constituted but
soon after it was merged with
the Economic Development Committee formed in 1925. Just like Cochin State, Malabar
also earned good amount of foreign exchange from the export of coconut oil. Another
important industry popular in Malabar was soap industry. While we trace the
industrialization of Malabar or even North Kerala, the works of Basel Mission deserves
special reference.
Started only by the middle of the 19th century, Kerala, the progressive land with
immense opportunities for investors, bestows an investor-friendly environment with well-
structured policies and pioneering initiatives. The world-class infrastructure and the
support make way for a successful venture. Among the leading commercial and trading
centres of India, Kerala offers good environment for setting up any industry. Finally
creating centres of educational excellence, harnessing the multiplier effects of IT-related
investments and high value service sector activities will enable both employment
generation and capitalise on its comparative factor advantages. Kerala, notwithstanding its
breathtaking scenic beauty, skills of its people and high quality of human resources, is
nowhere near realising its full economic potential.

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In Kerala, the Department of Industries and Commerce is headed by a Principal


Secretary to Government. This department is responsible for promoting/ sponsoring,
registering, financing and advising industries in the state. The department and its agencies
also guide the entrepreneurs in the selection of appropriate industrial ranges in the private,
public, joint and co-operative sectors. Directorates of industries and Commerce, Handloom
and Textiles, Coir Development, Mining and Geology and 72 Public Sector undertakings
fall under this department. Visit Kerala's position is 12th in the industrial ranking among the
major 16 States in India. It was reported that about 22.5 % of the total income of the State
came from the secondary sector during 1980-81, which was only 17% during 1970-71. The
industrial sector of Kerala employed 15% of the total workers against the national average
of 9%.
Industries in Kerala:
Kerala, with all its limitation, is putting efforts for speedy Industrial Development in
the state. Traditional industries are handloom, cashew, Coir and Handicrafts where the
persons employed are from weaker sections of the community. Other important industries
are Rubber, Tea, Ceramics, Electric and Electronic Appliances, Telephone Cables,
Transformers, Bricks and Tiles, Drugs and Chemicals, General Engineering, Plywood
Splints and Veneers, Beedi and Cigar, Soaps & Oils, Fertilizers and Khadi and Village
Industry Products. The modern industries in Kerala are Metal, Shipping, Softwares,
Electronics, Automobiles, Real Estate, and Tourism. etc. There are a number of
manufacturing units for production of precision instruments, machine tools, petroleum
products, paints, pulp paper, newsprint, glass and non-ferrous metals. Principal export
products are Cashew Nut, Tea, Coffee, Spices, Lemon Grass Oil, Seafood, Rose Wood
and Coir. The land of Kerala is endowed with a number of deposits of good quality china
clay and beach sands containing a variety of valuable minerals. Heavy mineral sands and
china clay contribute more than 90 percent of the total value of mineral production in the
state. Kerala possesses one of the world class deposits of mineral sands in the coastal
tracts between Neendakara and Kayamkulam. Gold occurs in Kerala both as primary and
placer deposits and the known occurrences are mainly in Wayanad and Nilambur regions.
State Level Public Sector Enterprises
The Public Sector Undertakings, administered by Industries Department of
Government of Kerala. The situation that prevailed in many of the PSEs were pathetic
resulting in disgruntled workers, abysmally low productivity, severe liquidity crunch,
unprofessional management, corruption and nepotism. Growth and development of PSUs
are taken as the essential part of the political and economic struggle in the present neo-
liberal policy period. Special mention is necessary about the role of Trade Unions and
Officers’ associations in achieving results. The details of the PSEs are given below
State level PSEs under Industries Department as on 31-03-2012
1. Number of PSEs-44
2. Sector wise PSEs: 9 in Textiles, 8 in Traditional and welfare,7 in Chemical,6 in
engineering, 4 each in Development& Infrastructure and Electrical equipments, 3 in
Electronics, 2 in Ceramics& Refectories and 1 in Wood & Agro based sectors
3. Profit Making Units-20, Mainly in Chemical, Development& Infrastructure and
Electricals.
4. Loss making units-24, Mainly in Textile and Traditional industries.
5. Total Turnover during 2011-12 is Rs.3148.22 crore
6. Net Profit during 2011-12 is Rs. 245.8 Crore.
7. The Highest turnover is made by Kerala State Electronics Development
Corporationof Rs.302.10 Crore and the lowest by Texfed of Rs. 0.22 Crores in 2011-
12.

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8. The highest profit making PSEs is Kerala Minerals and Metals Ltd of Rs.150.10
Crores and the Highest loss making PSEs is Travancore Titanium Product Ltd of
Rs.24.16 Crores in 2011-12.
Joint Stock Companies
The total number of Joint Stock Companies in Kerala as on March 2012 is 19521 of
which nearly 93 percent are private limited and 7 percent are Public Limited. During 2011-
12, 2823 Companies were newly registered which included 2757 private limited and 66
public limited companies
Major Industrial Locations in Kerala
Most of the industrial and commercial establishments in Kerala are concentrated in
the coastal zone. Among the coastal districts, Ernakulam and Trivandrum have fairly large
number of industries along the coast, followed by Alappuzha, Kollam, Kozhikode, Kannur,
Kasargod and Malappuram. Eloor- Edayar- Ambalamugal area is the major industrial area
located in the coastal zone in the city of Kochi in Ernakulam District along the banks of the
Cochin backwaters. Major industries in Kerala are:
1. Fertilizer and Chemicals Travancore Ltd.(FACT)
2. Kochi Refineries Ltd.(KRL)
3. Hindustan Organic Chemicals (HOC)
4. Cominco Binani and Cochin Shipyard are located in Kochi availing the advantage of
the port facilities.
5. The world famous Chavara placer deposits of the Kollam district support three major
mineral industries in Kerala viz.
6. The Indian Rare Earths Ltd. (IRE)
7. Kerala Minerals and Metals Ltd. (KMML) at Chavara (Kollam)
8. The Travancore Titanium Products (TTP) at Veli (Trivandrum).
These units are situated closer to the sea. The Excel Glass factory situated near
Cherthala utilizes the silica sands of the coastal zone of Alappuzha district for the
manufacture of glass. Most of the seafood and coir industries in Kerala are located in the
coastal area and are concentrated in Alappuzha district. There are 101 seafood factories in
the coastal zone with a freezing capacity of approximately 1868 t /day, of which 47 are
approved by the European Union. Besides, there are 210 peeling sheds and 217 ice
plants. Cashew processing industries, a traditional enterprise in the state are mainly
situated in the coastal area of Kollam district. There are about 300 large and medium scale
industries and 1,66,000 small scale industries, most of them are located in the coastal
area.
Industrial Growth in 2011
It had been a satisfying year for industry and allied sectors in Kerala. During 2011-
12, Kerala recorded a growth rate of 6.39%. The contribution of the manufacturing sector
to GSDP at constant and current prices during 2011-12, was 6.39 %t and 13.46 %
respectively.The income from manufacturing sector to GSDP and is growth rate are given
Table 4:8
Table 4:8
Growth of Manufacturing Sector in Kerala (GSDP) (Bas Year 2004-05)
Source: Dept. of Economics and Statistics
According to the latest estimates available on the Index of Industrial Production
(IIP), the index of mining, manufacturing and electricity registered growth rates of 1.8
percent, 0.2 percent and 2.8 percent respectively during second quarter of 2012-13 as
compared to the growth rate of (-) 4.1percent, 3.4 percent, and 10.5 percent in these
industries in second quarter of 2011-12. The key indicators of construction sector, namely,
cement production and steel consumption have registered growth rates of 5.1 percent and
2.3 percent respectively during second quarter of 2012-13. In Kerala, the manufacturing
sector recorded a decline in growth rate of nearly 13.5 percent in GSDP at current prices

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during 2011-12 compared to the growth of almost 15 percent in the previous year. A drastic
decline can be observed in the growth rate of manufacturing during 2009-10 and after that
there was an increase and again declined during 2011-12.
Traditional Industries
Traditional industries form the back bone of industrial development of Kerala
providing employment on a massive scale with minimum capital investment. But traditional
sectors are operating at a low level of productivity and workers draw very low income. The
traditional industries in Kerala particularly coir, handlooms, khadi, bamboo-based,
handicrafts, artisanal and village (cottage) industries etc. are plagued by problems of high
cost production, low quality, absence of diversified product range, inappropriate technology
and incapacity for professional marketing and export. Increased mechanization, large
scale of production and global competition in quality and price pose the threat of massive
redundancies in these high employment sectors of Kerala, which may result in poverty and
social problems.
To attract private sector investment badly needed in these sectors, a special
scheme of investment subsidy with adequate incentives will be implemented, so that our
reliance on cooperatives heavily dependents financially on the government for investment
(often to the extent of 95% or more) will be reversed. Agencies created primarily as apex
organizations and for marketing of traditional industry products like coir, handloom, khadi,
cottage industry products, handicrafts etc. will be given programme funding rather than the
non- conditional grants and share participation given in the past in order to avoid wastage
of scarce Government resources on high overheads and to ensure delivery of their
services (particularly marketing) in the most cost effective manner, using private sector
finance and initiative at the retail level.
The development and production of value added, diversified and innovative
products from traditional industries are proposed to be done by a cluster based approach
which will ensure the critical mass for forward integration. Marketing, both domestic and
global, is to be promoted by developing brand equity for Kerala’s traditional industry
products. Research and development to create new processes and appropriate machinery
will be funded on a project-to-project basis with the provision for success fees linked to
effective commercialization and commissioning.
(a)Coir Industry
Coir Industry is the largest agro based Traditional & Cottage industry in Kerala and
is concentrated mainly in the rural areas. It provides livelihood to nearly 3.75 lakh people,
of which women constitute 80 per cent. Government has given more emphasis on Coir
Industry by considering the special features and problems being faced by it. India’s export
of coir accounts for a value of Rs.1052.63 crores during 2011-12 and Kerala’s share is 80
per cent. Among the items of export coir fiber, coir pith, coir yarn, coir geo-textiles,
handloom matting and rubberised coir have shown increase. Coir Geo-textiles has been
identified as a major coir product with huge market potential in the multi disciplinary geo-
textile engineering applications.
The industry is mainly organized in the cooperative sector with 804 registered
primary cooperative societies of which only 410 are working as on 2007. COIRFED is the
apex society. The major portion of coir yarn produced by coir societies is marketed by
COIRFED. Kerala State Coir Corporation (KSCC), Foam Matting’s India Ltd(FOMIL),
National Coir Research & Management Institute(NCRMI), Exporters, Coir Co-operatives,
Coir yarn producers, product manufactures and workers are the major stake holders of the
Coir industry. The welfare activities are implemented through the Kerala State Coir
Workers Welfare Fund Board. The Co-operative Sector as well as Private Players
dominates the Coir Industry in Kerala.

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The export of coir and coir products from India during the year 2011-12 was 410854
MT valued at Rs.1052.63 crore as against the export of 187567 MT valued at 592.08 crore
in 2007-08. This recorded an increase of 119 per cent in quantity and an increase of 78
per cent in terms of value over the export achieved during 2007-08. Among the items of
export from India, curled coir, coir fibre, coir pith, coir rope, coir yarn, coir other sorts coir
geo-textile, handloom mattings, Power loom Mats & rubberized coir have shown an
increase both in terms of quantity and value when compared to the previous year. The
items such as coir rugs & carpets have shown a decrease both in terms of quantity and
value over to the previous year. The items handloom mats & tufted mat have shown an
increase in value even though the quantity has decreased. Government has been
providing adequate financial support to the development of the sector. Coir Kerala-2012 –
‘an International event on Coir and Natural Fiber Products’ aimed at exploring and
expanding the international market was conducted at Alappuzha, in which buyers from 32
countries participated. U.S.A is the largest importer of coir products from India followed by
Germany, U.K, France, Netherlands, Italy and other European countries.

Under Regulated Mechanization of Coir Industry scheme, during 2011-12 as many


as 97.77 lakh number of husk procured by spending an amount of Rs. 136.92 lakh,
purchased 18348.12 tonnes of fibre at a cost of Rs.5701.97 lakh and produced 15408.2
tonnes of yarn worth Rs.3286.39 lakh, through coir co-operative societies. During 2012-13,
the State Govt. has provided financial outlay to the tune of Rs.100.7crore under plan of
which Rs. 44.55 crore has been expended as on 31st January2013. This sector, achieved
100 per cent financial targets in 2011 and 2012.
Geo-textiles and other innovative products from the biodegradable coir yarn are to
be developed and made acceptable for civil engineering and other varied applications
where massive potential demand exists both in India and abroad. Entrepreneur
development, research and technology up-gradation programmes along with substantial
private investment in the coir sector (now dominated by cooperatives) will be facilitated.
Appropriate technology will be introduced to enhance productivity and maintain the
competitive edge of Kerala coir, now seriously threatened by other fibres including
polymers and coir products from the other states. Quality improvement, value addition,
innovation, technology up-gradation, diversification and export-oriented growth capitalising
on the eco-friendliness of coir will constitute the development strategy for the coir sector.
Problems
1. Acute shortage of fibre and unprecended increase in the price of fibre
2. Husk collection for commercial purpose is not effective
3. Prevalence of underemployment.
4. Traditional method of retting and fibre extraction leads to health and environmental
issues.
5. Low productivity, low investment, low level of managerial skill, lack of basic
infrastructure facilities, absence of R & D.
6. Competition from synthetic and cheaper substitutes.
7. Non-professionalized management system in co-operatives.
(b) Handloom Industry
The Handloom Sector in Kerala stands second to the coir sector in providing
employment among the traditional industries of the State. It provides employment to about
50000 of which 40 percent are women. The Handloom Industry in the State is mainly
concentrated in Thiruvananthapuram and Kannur District and in some parts of Kozhikode,
Palakkad, Thrissur, Ernakulam, Kollam and Kasaragod Districts. The Industry is dominated
by the Co-operative sector covering with 94 percent of total looms. The remaining six per
cent of Handlooms units are owned by Industrial entrepreneurs. The Co-operative sector

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consists of factory type and cottage type societies. There were 591 registered Primary
Handloom Weavers Co-operative Societies in the State as on March, 2012, indicating
almost a 8 per cent decrease from the previous year, of which 166 are factory type and
425 are Cottage type societies. All of these are in working condition as at the end of
financial year 2011-12.
The major varieties of products produced in the handloom sector of the State are
dhothis, furnishing material, bed sheets, grey saree and lungi. The productions of these
items contribute 67 per cent of the total production of handlooms. About 80 percent of the
major items are produced in the southern region followed by the North (12 per cent). Of
the total production, nearly 95 per cent is contributed by the co-operative sector.
The total production of handloom cloth shows an increase of about 5 percent from
26.68 Million metres in 2010-11 to 27.89 Million metres in 2011-12. But the total value of
production shows an increase of about 6 percent from Rs.190.96 crore to Rs.202.14 crore
during the period. The total number of weavers employed increased from 52386 in 2010-
11 to 51590 in 2011-12. The number of women employed is also increased from 20909
during 2010-11 to 21632 in 2011-12. The total employment decreased from 96.65 lakh
man days in 2010-11 to 90.32 lakh man days in 2011-12
Hantex and Hanveev are two state level agencies dealing with the procurement and
marketing of handloom fabrics. Kerala State Handloom Weavers Cooperative Society
(HANTEX), the apex organization of the cooperatives established for the supply of raw
materials for the primary weaver's society and for the marketing of their products. There
are 152 sales depots, two weaving factories two garment units and one cloth processing
unit under Hantex. Kerala State Handloom Development Corporation Ltd (HANVEEV)
providing services (especially marketing) to individual weavers, are the principal
development agencies assisting the Department of Handlooms and Textiles, which is
outside the purview of the cooperative fold, is acting as a link between the weavers and
consumers and to eliminate the middlemen. The company has strength of 65000
registered weavers in its various units. To promote handloom industry the Government
made two initiatives one for encouraging the use of handloom cloth uniforms by school
children the second called Kerala ‘Thanimaykku Kaithari’ to encourage Government
officials to wear handloom clothes on at least one working day in a week.
Achievements
These include the establishment of Indian Institute of Handloom Technology at
Kannur, establishment of hank yarn production centres at Kannur, Alappuzha and Thrissur
co-operative spinning mills, Registration of the products such as Kuthampully saree,
Kasargod saree and Balaramapuram saree and fine fabrics under Geographical Indication
Act 1999 and setting up of 20 clusters and 21 Group projects with the support of GOI.
Assistance has been given to the propagation of handloom mark scheme. A new project
“Keralathanimakku kaithari” was introduced. New technology developed with the help of
IIHT, Salem for pre-loom process and new designed products have been introduced.
Handloom Industry provided employment to almost 1 lakh weavers.
Problems
1. Handloom sector lacks modern infrastructure facilities required for competing
international markets.
2. At present this sector depends on other states for quality yarn, pre loom activities
like dyeing and post loom processing, consequently the cost of production is
comparatively high.
3. Competition from cheap power loom fabrics from other states/ countries, is affecting
local handloom producing units.

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4. Productivity of power loom is 10-12 times more than that of handloom; power looms
can easily replicate products of handloom sector. Hence technology up gradation of
handloom production is urgent.
5. Due to low wages, workers/weavers look for alternate jobs.
6. Lack of value added and diversified products.
7. Inefficiencies in the system, particularly in the cooperative sector
(c)Bamboo Industry
Bamboo/Reeds industry is one of the age-old traditional industries of the state. The
Kerala State Bamboo Corporation Ltd. was established in 1971 in Kerala with main
objectives to develop & promote industries based on bamboo, reed, cane and rattan. It is
an ISO 9001-2000 certified Company now. Kerala State Bamboo Corporation’s main
activity is collection of good quality reeds from Government forests and distributing these
reeds to the registered mat weavers of the Corporation, throughout the State of Kerala, on
credit basis and procuring woven mats made of these reeds at reasonable prices, thus
providing employment and regular means of livelihood to these weaver sections of the
society. Bamboo mats, Bamboo ply, Flattened board, Flooring tiles are the main products.
The Hi Tech Bamboo Flooring Tile Factory was commissioned in February 2011 at
Nallalam, Kozhikode with a view to manufacture Hi-Tech Bamboo Flooring Tiles using
Bamboo as the main raw material using imported Chinese Technology. There are four
Feeder/Primary Processing Units at Palakkad, Kadampuzha, Mananthawady and
Nadapuram.
Considering the major scope for development of bamboo in Kerala both as a raw
material for the traditional handicraft sector as well as for modern industry (as in China), a
special programme is proposed for cultivation of bamboo, creation of new designs for
innovative products in the handicrafts sector along with the appropriate skill development,
promotion of bamboo-based modern industries supported by technology adaptation and
development by R & D organizations.
(d) Khadi & Village Industries.
Khadi & Village Industries Board carries out its activities through cooperative
societies, registered institutions and departmental units by availing financial assistance
from State Government, Khadi Commission and Nationalized Banks. The Board has been
promoting Sericulture through SERIFED which has opened a cocoon market in Palakkad
and a SILK EXCHANGE facility in Kasaragod.
The khadi sector has at present most of the problems indicated for traditional
industries including handloom, but in a more acute form. As the production process is
totally manual, one unit of khadi cloth needs several times the man-days needed by the
mechanized textile sector and 4 times of that of the handloom sector. At present there is a
mismatch in production between the spinning and weaving sectors in Kerala, which is
proposed to be rectified by expanding the weaving sector by retraining of trainable
spinners as weavers and providing new looms to them. Innovative designs in keeping with
consumer demand including in silk, permissible mechanization, standardization of quality,
incentives for private sector production of ready made garments from khadi cloth, efficient
marketing through private outlets with common branding and facilitation of global exports
are envisaged.
Khadi and Village Industries play a substantial role in generating employment in
rural areas with minimum investment. These industries use eco friendly, local resources
and generating higher employment opportunities. The Kerala Khadi and Village Industries
Board is a statutory body vested with the responsibility of organising, developing and
promoting Khadi and Village Industries in the state. Co-operative societies, registered
institutions and departmental units carry out the activities of the Board, by availing finance
assistance from State Government, Khadi Commission and Nationalised Bank. The Board
has achieved 100 per cent financial targets in 2011 and 2012.

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Problems
1. Unhealthy competition from substitute products
2. Shortage of quality raw material
3. Attitudinal change of the people
4. High price and inefficient marketing.
5. Too much dependence on government support
6. Lack of product diversification.
(e)Handicrafts.
Handicraft industry is one of the traditional industries of Kerala, providing
employment to Artisans. Eighty percent of these artisans are from socially and
economically backward classes. Kerala has the tradition of making beautiful handicrafts
with ivory, bamboo, palm leaves, seashells, wood, coconut shells, clay, cloth, coir, metals,
stone, lacquer ware etc. and the artists are experts in making beautiful flower vases, ash
trays, ornamental plates, jewel boxes, miniature boats, elephants, idols, kathakali masks
and embroidery works, Coconut Shell carving, straw picture making, cane work, bamboo
and reed weaving, ivory carving, bell metal casting, screw pine and mat weaving are the
major handicrafts in the State. Many antique handicraft treasures can be seen in palaces,
old heritage homes and museums in the State.
Treating the handicrafts sector on par with the other traditional industries for
incentives and concessions, cluster-based development, common facilities, mechanized
production to reduce costs, targeting the global market and promotion of entrepreneurs in
the business of production and marketing of handicrafts are the corner stones of the
handicrafts development policy. An innovative approach of attracting outsourced
production contracts for the ethnic handicrafts of other countries and regions will be
attempted, considering Kerala’s strengths of comparatively low cost production and high
quality of workmanship in handicrafts. Skill development training and common facility
centres for the provision of commonly needed but expensive equipment and
professionalisation of marketing and export through the public and private sectors are also
integral to this strategy.
Handicrafts Development Corporation and Artisans Development Corporation are
the major promotional agencies of the industry. The Artisans Development Corporation is
giving assistance to artisans in the trade of pottery, copper, bronze, gold smithy, carpentry
etc. Kerala State Handicrafts Apex Cooperative Society (SURABHI) formed to support
handicrafts in the State has 103 primary cooperative societies to market their products
through a network of 16 sales showrooms across the country. SURABHI is the apex
organization of primary handicrafts co-operatives established with a view to uplift the
artisans by marketing the product produced by the primary co-operatives and
implementing welfare schemes with the assistance from State and Central Governments.
Handicrafts Development Corporation of Kerala is engaged in procuring and
marketing handicraft products by giving fair returns to artisans through SMSE Institute and
Kairali emporia spread all over India. At present it is having a net work of 19 such sales
emporia. HDCK also owns a Common Facility Service Centre (CFSC) at
Thiruvananthapuram where lots of artisans are provided with the facilities for the
development of crafts. The Kerala Artisans Development Corporation (KADCO) is one of
the State agencies to provide assistance to artisans for establishing production units,
promoting marketing of products and providing employment opportunities through
schemes of trade fairs and marketing centres.
Problems
1. Lack of modernization, value addition, new designs, good marketing and promotion
strategies to match changing market conditions.
2. Inadequate marketing facilities for sale of products.
3. Shortage of capital.

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(f)Cashew Industry
Cashew is an important commercial horticulture crop of India and a traditional
industry in Kerala mainly concentrated in Kollam District and is mainly controlled by private
sector.. India is the biggest producer, processor and exporter of Cashew in the world. The
industry has a long history of employing large numbers of workers in decentralised units.
The industry is highly labour intensive and employs more than 3,00,000 workers. The
unique feature of this Industry is that majority of the workers are women from lower
economic strata of the society and skills of these workers do not include any
entrepreneurial capacities. Many of the workers are barely literate.
Kerala has a long tradition both in cashew cultivation and cashew nut processing.
Though the production of raw cashew nuts in Kerala shows an upward trend, during 2010-
11 it has increased from 66000 MT in 2009-10 to 71000 MT. The total export of cashew
kernels from Kerala during 2010-11 was 49692 MT valued at Rs.1417.28 crore. It showed
a decreasing trend of 3.2 percent in quantity and 4.7 percent in value. Nearly 54 percent
of total exports of India is from Kerala. The Kerala State Cashew Development
Corporation KSCDC and Cashew workers' Apex Cooperative Society are the two State
agencies engaged in the cashew processing sector in Kerala. In KSCDC there are about
15000 workers and majority of them are women. KSCDC exports cashew kernels and
cashew shell liquid. Raw nuts are mainly imported to supplement the local availability.
There are about 4000 workers under CAPEX. As part of product diversification effort of
KSCDC has come upon the innovative product of cashew based noodles, which remains
to hit the market.
Achievements
1. Modernization of Cashew factories.
2. Value added products were produced.
3. Continuous Employment was given to workers of KSCDC & CAPEX with
good ESI facilities and other benefits.
4. Branded products were established in domestic and international markets
5. A wide variety of Cashew Grafts was supplied to farmers and institutions
through KSACC.
Major Issues of the sector
1. The rate of growth of production of raw nuts in India and Kerala is very low
and the productivity per hectare is also low. Area and production under
cashew crop has declined.
2. Cashew factories work at low level of capacity utilization and productivity.
3. Raw nut producing countries started processing kernels and they entered the
world market posing a serious threat to Kerala.
4. Global market also witnessed growing demand for substitute nuts and
kernels in the place of cashew.
5. The price of kernels which is controlled by market agents in New York
undergoes wide fluctuations.
6. The commission system of cashew processing is growing to the advantage
of workers as well as State agencies.
(g)Beedi Industry
Beedi Industry in Kerala is concentrated in Kozhikode, Kannur and Kasaragod.
The Kerala Dinesh Beedi Workers Central Co-operative Society Ltd. was the only
agency in the State to promote beedi industry in the organized sector. During the period
under review, the society concentrated on the upliftment of units for the diversified
products for the rehabilitation of about 7000 beedi workers under the society. The

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society distributed Rs.466.03 lakh as Relief Pension to beedi workers and Rs.600.00
lakh as gratuity to the workers who retired from service from the year 2006-07 to
30.09.2009.
As part of product diversification programme, the Society started a Dinesh
Garment unit, Dinesh Umbrella unit and Dinesh Foods. Dinesh Garment unit, Thana,
Kannur provided employment to 150 workers. During 2010-11, the profit of the unit was
Rs.57.58 lakh and the sales turnover was Rs.6.52 lakh. Two more units of Dinesh
Garment at Chala , Kannur and Cheruvathur, Kasargod which will provide employment
to 250 workers were initiated functioning with training to workers and the development
activities of Dinesh Coconut milk unit is also started.
(f)Small-Scale Industry (SSI)
Small-scale Industry has emerged as a major determining factor in the growth of
our economy in terms of employment generation. The sector contributes maximum
production for domestic and export markets and produces variety of products ranging from
traditional to high tech. Out of the total number of registered working SSI units 195960
units, 41305 units are promoted by women, 6834 by SCs, 1414 by STs and 146407 by
others. The additional investment made by the SSI units during 2006-07 (up to 1.10.2006)
is Rs.8815 lakh and the employment provided is 12352. Out of the total 195960 units
registered so far in the State, the number of units identified as sick as on March 2007 is
7586. Among the sick units, 2376 units are registered for revival and 1280 units are
revived. The District Industries Centres revived eight sick units at Kollam, four at Wayanad,
two at Kannur and one at Thrissur during 2006-07.
Problems of Small Scale Industries
1. Industrial Cluster Development Approach for the Growth of SSI sector is not at
the desired level.
2. Land for the development of industry as visualized couldn’t be acquired in time
due to high cost of land, lack of available unused land, legal hurdles and
environmental issues. Land–man ratio is the lowest in Kerala among the other
states.
3. Lack of infrastructure facilities especially energy.
4. SSI sector received less priority under decentralized planning process.
5. Flagship Programme on promoting ancillary production has not taken off yet
6. due to the inertia of the implementing department
7. The progress in revival of sick industrial estates is also not satisfactory.
The Industrial sector in Kerala consists mainly of traditional industries and modern
industries. Besides we now have new emerging areas like Information Technology (IT) and
IT Enabled Services (ITES) and bio-technology. Since the bulk of industrial workers in the
state are employed in traditional industries like Coir, Cashew, Handlooms and Beedi and
Cigar making, top priority has to be given to revive, modernize and strengthen them to
face the increasingly competitive market conditions. At the same time considering the large
stock of educated unemployed, the development of modern industries has also to be
encouraged. There is also a need to promote skill development to equip the unemployed
to get gainful employment. Though private capital and entrepreneurs are willing to start
new industries in the state they are confronting certain constraints like non-availability of
land for industrial purpose, high land prices, lack of adequate infrastructure like roads and
power, and, bureaucratic delays in getting government clearance on projects. Besides,
objections from environmental activists and misgivings about some uncertainty in industrial
relations add to woes of private investors in Kerala. We are trying to remove these
constraints as fast as possible.

Traditional industries over the last few decades have witnessed substantial
informalisation of production. In some of the traditional industries cooperative societies

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have been set up in large numbers with government assistance. But the onset of policies
of liberalisation, stagnant demand, curtailment of state support on account of fiscal
squeeze, failure to modernise production processes and also to diversify and improve
quality of production have combined to push the traditional industries in to serious crisis.
As a result, the condition of the workers has remained abysmal with low wages, uncertain
employment, unhygienic conditions of work environment and weakening of collective
bargaining strength of the working class and their trade unions. Therefore, it is imperative
for the state to formulate an appropriate policy to tackle these problems facing the
traditional industries and then to promote their development. The absence of timely state
support will affect thousands of workers, mostly women workers who constitute the main
work force in some of these traditional industries. Taking the distress that has been caused
to the traditional industries by the recent global economic crisis, the Planning Board held
discussions with industry representatives. In the light of that, we have provided substantial
plan funds during 2008-09 to give relief to these industries.
Modern Industries in Kerala
(1)IT/ITEs
The exponential growth witnessed during the past 10 years in the IT/ITEs industry
has influenced the growth of the economy. The Indian IT/ITEs industry has been growing
at a very healthy rate of 30 percent per annum. The industry has helped in creating large
scale employment opportunities for technically qualified professionals as well as non-
technical personnel in low end activities like back office operations, call centres,
transcription services etc. This industry helps to protect environment and can attain goal
with low investment. Today this industry is providing employment to over 1.6 million people
across the country, grossing total revenue of Rs.1, 60,000 crores per year, from exports
and domestic sales put together.
Government of Kerala is keen to play a catalytic role for the development of IT/ITEs
industry within the State, as it is ideally suited for such a densely populated State, having
vast multitude of highly qualified and experienced human resources, uniformly spread
across the State. Unlike the rest of the country, the State is also blessed with quality social
infrastructure and excellent physical connectivity, evenly distributed across the fourteen
districts of the State. Due to certain inherent strengths of the State, Kerala is uniquely
placed to emerge as a major IT destination in the country, though it has had a late start.
With the industry galloping at a healthy CAGR of about 25 percent there is enough
opportunity available for the State to capture a fair share of the growing IT/ITEs business.
Kerala State Information Technology Mission (KSITM), Indian Institute for
Information Technology and Management-Kerala (IIITMK), Technopark, Infopark, Cyber
Park and Kerala State Information Technology Infrastructure Ltd. (KSITIL) are the major
agencies involved in the implementation of Information Technology schemes in the State.
Technopark, Trivandrum is an autonomous Society under Travancore, Cochin
Literary, Scientific and Charitable Societies Act established on July 1990, promoted by the
Government of Kerala for providing infrastructural facilities of world class quality for IT and
ITES Industries. It is India’s first technology park and among the three largest IT parks in
India today. This is the first CMMI level 4 assessed Technology Park. Spread over 330
acres, and about 4 million sq. ft of built-up space, Technopark hosts over 267 IT and ITES
companies, including several CMMI Level 5, CMMI Level 3 and ISO 9000 certified
companies with around 37000 employees. The total land available with Technopark is
about 771.54 acres. Total investment during 2011-12 is Rs. 3000 crores and
corresponding turnover is Rs. 2850 crore. Total export during 2011-12 is Rs.2800 crore.
Cyberpark
Cyberpark is registered as a society under the Societies registration Act XXI of
1860, on 28th January 2009, promoted by government of Kerala under the Information
Technology Department and governed by a General Body. The purpose of Cyberpark is to

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provide a friendly, cost effective and top of the line infrastructure to the IT/ITEs investors,
there by acting as a catalyst for the social and infrastructure development of the region
with a vision to provide employment opportunities and a substantial contribution to
economic development of the state especially the Malabar Region. The total land available
for Cyberpark is about 167.52 acres. The total investment upto March 2012 amounts to
Rs. 5.58 crore.
Infopark
Infopark Kerala is a society registered under Travancore Cochin Literary Scientific
and Charitable Society Act XII of 1955 and fully owned by government of Kerala. The main
objectives include creation of state-of-art infrastructure facilities such as space for IT/ITEs
companies, supply of power, water, connectivity etc. Since its inception in 2004, Infopark
has created over 34 lakhs sq. ft of IT space and has provided employment to over 18000
professionals through around 125 IT companies who have taken space in the Parks. Total
investment as on March 2012 is Rs. 1500 crore and the turnover upto March 2012 is Rs.
1150 crore. The export upto March 2012 is Rs.1100 crore. At present Infopark has the
following IT Parks.
1. Infopark Kochi – Phase I - 100 acres in Kakkanad, Ernakulam
2. Infopark Kochi – Phase II - 160 acres in Kunnathunad, Ernakulam
3. Infopark, Thrissur - 30 acres in Koratty
4. Infopark, Cherthala - 66 acres in Pallippuram, Alapuzha
(2)Electronics Industry in Kerala

The state has the availability of skilled and semi-skilled workers for the electronics industry.
The Electronic Hub proposed at Kochi is a prestigious project of Government of Kerala to promote
electronic hardware manufacturing units and assembling units, R&D centres and for supporting
infrastructure for the same. The Electronic Hub is a high priority area, which will promote a large
number of small, medium and large scale industries in the state and will form a National Investment
& Manufacturing Zone (NIMZ) for production of electronic hardware items. The self-contained
Electronics Technology Park at Technopark, Trivandrum, has been instrumental in attracting global
electronics manufacturers. The key Plyers in elecrronics industry in Kerala are: Traco Cable
Company Ltd, Transformers and Electricals Kerala Ltd (TELK), Kerala State Electronics
Development Corporation Ltd.(Keltron)
Traco Cable Company Limited commenced operations in 1964, manufacturing high quality
cables and wires in technical collaboration with Kelesey Engineering Co Ltd, Canada. TRACO
currently meets the needs of public sector undertakings in India, such as, railways and the
electricity boards of various states. The company has its head office at Kochi with factories at
Ernakulam, Kannur and Thiruvalla.
TELK was incorporated in 1963 under an agreement with the Government of Kerala, Kerala
State Industrial Development Corporation and Hitachi Limited, Japan. TELK manufactures
transformers, bushings and tap changing gears. The factory and corporate office is located at
Angamally, near Kochi.
Founded in 1973, Keltron is a state-owned electronic enterprise, employing around 1,800
people and has 10 production centres. Keltron provides technical manpower to major organisations
such as Oil and Natural Gas Corporation Limited (ONGC). The company’s products are aerospace
electronics, security & surveillance systems, intelligent transportation systems, strategic electronics
products, IT solutions, IT infrastructure solutions, process automation, ID card project, power
electronics, electronic components and TE units. Keltron is headquartered in Thiruvananthapuram
and has training centres in 30 locations across Kerala.

(3)Real Estate
The real estate business in India and Kerala is experiencing a boom. This boom is
spread across the country and hence the economy has managed to grow faster than 8%

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per year because of increasing real estate market trend. Easier access to bank loans and
higher earnings are some of the pivotal reasons behind the sudden jump in Indian real
estate. The growing IT revolution, increase in population and higher density, flow of huge
FDI in Indian real estate market, pressure from the residential real estate sector, growing
retail and tourism sector and the promotion of SEZ etc provide a favoring atmosphere for
the growth of real estate business and the skyrocketing of land prices in India especially in
Kerala. The important factors affecting demand for land in Kerala are growth of population,
changes in inheritance system, development of commercial cultivation, income and tastes,
migration of workers, inflow of remittance from abroad etc. Among the Indian states,
Kerala experience a rampant increase in land transactions and prices since the 1990’s.
The phenomenon of the real estate boom was rampant in the early 90’s in important cities
and urban centers, but towards the latter part of the 90’s, the boom is especially spreading
to semi urban and even in rural areas. Kerala being a land scarce and high density of
populated state, scarcity of land for alternative and competing uses results in unhealthy
and speculative types of land transactions in the state. As a result of greater demand for
land due to the population pressure, spread of commercial cultivation with crops of
perennial nature, Kerala was is one of the states in India with highest land value. The price
of land should have further increased in Kerala as a result of increase in the inflow of
remittances from outside. As more and more area getting privately owned and greater
demand for land due to factors mentioned above, number of market transfers of land has
been steadily increasing. In Kerala, the contribution of real estate sector to GSDP is a
significant one and it is increasing which is shown in the Table 4.9
Table 4.9
Share of Real Estate to GSDP at Factor Cost (2004-05 to 2006-07)
At Constant Prices (1999-2000)
SI.
No
Indu 2006-07 (Q)
stry 2004- 2005-
of 05 06
origi (P)
n % GSD % GSD %
GSD P P

1. Real 8174. 8.9 9072. 9.2 9657. 9


estat 78 36 41
e
2. Total 9207 100 9881 100 1068 100
GSD 4.98 7.08 32.7
P
Source: Department of Economics and Statistic, Govt. of Kerala P: Provisional, Q: Quick
Estimate
As per the available data, the contribution of real estate to GSDP increases steadily from
2004 to 2007 (at constant prices). Its share increased from 8174.78 crores (8.9%) in 2004-05 to
9657.41 crores (9%) in 2006-07.
(4)Tourism Industry in Kerala
Kerala state situated on the tropical Malabar Coast of southwestern India is
one of the most popular tourist destinations in the country. It is named as one of the ten
paradises of the world by the National Geographic Traveler Kerala is famous especially for
its ecotourism initiatives. Its unique culture and tradition coupled with its varied
demography, has made Kerala one of the most popular tourist destinations in the world.
Kerala is an established tourist destination for both Indians and non-Indians alike. Kerala is

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popular for her beaches, backwaters, mountain ranges and wildlife sanctuaries. The city of
Kochi ranks first in the total number of international and domestic tourists in Kerala. Other
popular attractions in the state include the beaches at Kovalam Cherai and Varkala;
backwater tourism and lake resorts around Vembanad Lake, Kumarakom and Alappuzha;
hill stations and resorts at Munnar, Wayanad,Nelliampathi, Wagamon and Ponmudi and
national parks and wildlife sanctuaries at Periyar and Eravikulam National Park. The
“backwaters” region - an extensive network of interlocking rivers, lakes, and canals that
centre on Alleppey, Kumarakom and Punnamada also see heavy tourist traffic. Heritage
sites, such as the Padmanabhapuram Palace, Hill Palace, and Mattancherry Palace are
also visited. The city of Kochi ranks first in the total number of international and domestic
tourist arrivals in Kerala.
Development of Tourism as an Industry
Since its incorporation as a state, Kerala's economy largely operated under welfare-
based democratic Socialist principles. This mode of development, though resulted in a
high Human Development Index and standard of Living among the people, lead to an
economic stagnation in the 1980s (growth rate of 2.3% annually ) This apparent paradox
— high human development and low economic development — lead to a large number of
educated unemployed seeking jobs overseas, especially in the Gulf countries. Due to the
large number of expatriates, many travel operators and agencies set shop in the state to
facilitate their travel needs. However, the trends soon reciprocated with the travel agencies
noticing the undermined potential of the state as a tourist destination. First travel agency in
Kerala, Kerala Travels was founded by Col G.V. Raja of the Travancore royal family along
with P.G.C. Pillai .
Until the early 1980s, Kerala was a relatively unknown destination, with most
tourism circuits concentrated around the north of the country. Aggressive marketing
campaigns launched by the Kerala Tourism Development Corporation—the government
agency that oversees tourism prospects of the state—laid the foundation for the growth of
the tourism industry. Kerala strongly realized the importance of Tourism during the mid
80’s. Tourism was recognized as an industry in Kerala in 1986 – vide an order dated July
11, 1986. Kerala was the first state to declare tourism as an industry. The first tourism
policy of the state was announced in 1995 underlining the importance of Public- Private
Partnership. The Tourism Policy of Kerala stated as its main aim “to serve as a guiding
force to make maximum use of Kerala’s tourism potential and also to make it an ideal
instrument of social and economic growth”. By the early 2000s, tourism had grown into a
fully fledged, multi-billion dollar industry. Over the last five year plan period priority has
been given to the development of Responsible Tourism with the objective of improving the
standard of life of the locals. Tourism has come a long way since capturing new markets
with its innovative products and marketing strategies. India Government bestowed industry
status on tourism only in 1992. Kerala Tourism subsequently adopted the tagline God's
Own Country in its advertisement campaigns.
The year 2011-12 has recorded an impressive growth in tourism sector.
International Tourist arrival had declined due to the impact of Global Economic crisis in the
previous years. But the year 2012 marked a significant improvement. The number of
foreign tourists in Kerala in the year 2011-12 is 732985 against 659265 in 2010-11. It
shows an increase of around 11 per cent over the previous year. During 2011-12 Kerala
has the distinction of nearly 12 per cent of the total foreign tourist arrivals to India. The
number of domestic tourists in Kerala in the year 2011-12 was 9381455 against 8595075
in 2010-11. It shows an increase of over 9 per cent over the previous year.
Thiruvananthapuram and Ernakulam are the two leading districts recording foreign tourists
arrivals to Kerala for the last few years. For the domestic tourist’s arrival to Kerala,
Ernakulam and Thrissur are the leading districts. Ernakulam is the leading district in

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domestic and foreign tourists’ arrival while as Pathanamthitta is the least attractive
destination among tourists.
Tourism contributes 9 percent of State’s GDP. Tourism industry is a major
contributor of foreign exchange earnings of the State. The foreign exchange earnings
during the year 2011-12 is Rs. 4221.99 crore. The total revenue generated during the
same period is Rs. 19037 crore (direct and indirect). It provides considerable employment
opportunities for semi skilled workers in the trade, hospitality and transport sector. It
indirectly encourages local manufacture of traditional goods. It stimulates ayurvedic
practices in the state and serves to showcase Kerala’s environment friendly and high
human development indicators to the rest of the world.
Potential Industries in Kerala
The State is endowed with a variety of natural resources in the area of Agriculture,
Information Technology, Bio Technology, Fisheries, Dairy Sector, Forest, Food, Processing,
Rubber and Chemical Industries, etc. Kerala being a consumer State, a number of
demands based items having scope for development especially in the field of Electronics,
Electrical, Fruit Processing, etc., can be identified for industrial development. Repairing
and Servicing Industries are now catching up demand and the economy of the State
largely depends on these sectors. Industries in the area of Software development,
Biotechnology, Simple Chemical and Engineering goods also can flourish in the State
using Modern Technology, skill and quality service to customers. Considering the immense
potential, resources and infrastructure facilities available, there exists scope for
development of a number of industries in the State. The state is endowed with a large
number of Agricultural products like Coconut, Tapioca, Plantains, Cashew, Coffee, Tea,
Rubber, Fruits like Pineapple, Mango, Pappaya, Spices and Forest products etc.
Livestock, Milk and Milk products also can prosper in the State. There has been oft-
repeated mention that most of the resources available in the State has not been utilized for
industrial purposes to the optimum level due to divergent socioeconomic factors and
constraints. Due to improved training facilities available and the better infrastructure
facilities for that, there exist prospects for a number of skill-based industries. With the
setting up of KINFRA Parks for Information Technology, Textile, Food Processing, Fish
Processing, Coir, Rubber, Electronic, Export Promotion, TV & Video etc., infrastructure
resources improved substantially, in recent years, that would act as an impetus for a
healthy and sound industrial growth. Electric power that would be generated by the
commissioning of various ongoing projects would take care of the future demand –
undoubtedly a healthy symptom for growth of industries based on the Resources and
Demands. A list of items of industries, having scope for development in the State is given
below:
I. Agricultural Products
1. Refined Coconut Oil
2. Coconut Milk/Cream
3. Desiccated Coconut
4. Arecanut Processing
5. Coconut Shell Products (Handicraft Item)
6. Coconut Shell Powder
7. Coir Products
8. Spices and Curry Powder
9. Modern Rice Mill
10. Tapioca Chips
11. Banana Powder
12. Coffee Powder
13. Flower Mill
14. Dehydrated Green Pepper

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15. Copra Processing.


II Fruit and Vegetable Products
1. Ready to serve Fruit Beverages
2. Vegetable Pickles
3. Fruit Preservation
4. Jack Fruit Processed Products
5. Ice Cream
6. Mushroom Processing
7. Banana Powder
III. Rubber Based
1. Rubber Moulded Goods
2. Centrifuged Latex
3. Rubber Mats
4. Rubberised Coir Products
5. Rubber Sheets
6. Rubber Chappals
7. Rubber Wood Treatment
8. Wood Seasoning, Panel, Doors etc.
9. Wooden Furniture
IV Chemical/Mineral
1. Mineral Water
2. Tyre Retreading
3. Corrugated Paper Boxes
4. Woven Sacks
5. Water for Injection
6. Washing Soap
7. Detergent Powder
8. Plastic Moulded Items
9. Anodising
10. Plastic Reprocessing
11. Paints and Primer
12. Perfumes and Lotions
13. Toilet Soap
14. Surgical Cotton
15. Printing Ink
16. Cycle Tyre and Tubes
17. Disposable Cups and Plates
18. Water Storage Tank
19. PVC Chappals
20. Screen Printing
21. Prefabricated Building Materials
22. Decoration of Glass and Ceramic Wares
23. Glazed Tiles
24. Marble Cutting and Polishing
25. Stoneware Pipes
26. Spectacle Frames
27. Cement Concrete Blocks
28. Chalk Crayons
29. Computer Stationery Items
30. Prawn Culture
31. Aqua culture
32. Ornamental Fish

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V Mechanical
1. Agriculture Implements
2. General Engineering and Fabrication
3. Automobile Repairing and Servicing
4. LPG Cooking Range
5. Interior Decoration
6. Industrial Knives
7. Stainless Steel Watch Strap
8. Steel Furniture
9. Fibre Glass Products
10. Artificial Jewellery
11. Aluminum Doors and Windows
12. Rolling Shutter
13. Wheel Balancing (Automatic)
VI Electrical/Electronics
1. Emergency Lamp
2. Inverters
3. Uninterrupted power supply (UPS)
4. Electronic Toys
5. CFL Ballast
6. Small Transformers
7. Uruli Roaster
8. Other electronic items
9. PVC Wires
10. Tube light fittings
11. Auto & GLS Lamps
12. Computer Software
13. Voltage Stabilizer
14. Bottle Coolers
B DEMAND BASED
1. Cattle Feed
2. Poultry Feed
3. Bone Meal
4. Fish Meal
5. Readymade Garments
6. Sanitary Napkins
7. Artificial and Fresh Flower Bouquet
8. Hosiery Items
9. Umbrella
10. Biscuits
11. Fish Processing
12. Fish Pickles
13. Meat Processing
14. Other Meat Products.
C SKILL BASED INDUSTRIES
1. Bell Metal Products
2. Synthetic Gem Cutting and Polishing
3. Diamond Cutting
4. Flower Nursery
5. Soft Toys
6. Beauty Parlour
7.Electronics Items (Rep. & Servicing Centre)

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8. Orchid Culture
9. Wooden Handicrafts
10. Aranmula Kannadi
11. Carved Furniture
12. Handicraft Items made out of Sea Shells
13. Block Printing
14. Thazhapai/Kutta/Muram etc.
15. Fashion Designing
17. Leather Chappals.
18. School Bags (Rexine)
19. Children Shoes.
20. Dog Belts.
21. Screen printing.
22. Simple Chemical items like liquid soap, Phenoil etc.

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(C) TRADE

Kerala has a long glorious history of trade with other countries in the world.
But the direction and composition of the trade is changed a lot in years. Now the
over dependence on horticulture and marine exports is risky as global commodity
prices are beyond Kerala’s control. Diversification of exports to include high value
knowledge based goods and services will spread the risk as well as improve
inward flows to the State.
Similarly, Kerala is known more for semi skilled emigrants, the one major
exception being highly skilled nurses. Efforts should be made to increase the skill
and employability of all Keralalites so that they may benefit from global
opportunities. The benefits gained in being a globally sought after tourist
destination can be further enhanced through a variety of measures which ensure
that Kerala remains a clear, eco friendly and safe destination, with not only a rich
historical and cultural tradition but a State which offers tourists world class
recreation facilities.
Being the major gateway to Kerala, the lion’s share of trade operations in
the State is being conducted through Cochin Port. Items of trade include pepper,
cashew, coir and coir products, tea, cardamom, ginger, spices and spices oil and
marine products. Total traffic handled by the Cochin Port during 2011-12 was
200.91 lakh MT and that of 2010-11 was 178.72 lakh MT, registering an increase
of 12.4 per cent.
Major items of Exports
Total quantity of exports through Cochin Port during 2011-12 increased to
43.11 lakh MT from 34.04 lakh MT in 2010-11, a rise of 27 per cent in quantitative
terms and 22 per cent in value terms. All commodities, except tea and coir
products, exported through the Cochin Port showed an increasing trend during
2011-12. Exports of cashew kernels increased by 11 per cent, sea foods by 22 per
cent, spices by 41 per cent and coffee by 36 per cent. Exports of tea has
decreased slightly (by 0.21 per cent) and that of coir products by 6.5 per cent. The
major exports of commodities through Cochin Port during 2010-11 to 2011-12 are
given in the Table 4.10.
Table 4.10.
The major exports of commodities through Cochin Port during 2010-
11 to 2011-12
Commodity 2010-2011 2011-2012
Quantity Value Quantity
Tea 111366 436.14 111137
Cashew Kernels 64298 1500.08 71187
Sea Foods 169408 1780.3 207107
Coir Products 131046 406.93 122521
Spices 81079 300.89 114669
Coffee 84792 689.2 115359
Miscellaneous include 27662061 11807.19 3568925
POL
Total 3404050 16920.73 43101905
Source: Cochin Port Trust
Major items of Imports

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Imports through Cochin Port continued to increase and reached a level of


157.80 lakh MT in 2011-12. The main items of import include fertilizers and raw
materials, food grains, iron and steel and machinery, newsprint and raw cashew
nut. Import of iron and steel and machinery which increased by 82.5 per cent in
2010-11 sharply decreased by 78.6 per cent in 2011-12. Import of fertilizers and
raw materials decreased by 30.5% during 2011-12. The commodity wise import
through Cochin Port during 2010-11 to 2011-12 is given in Table: 4.11
Table: 4.11
Commodity Wise Import through Cochin Port during 2010-11 to 2011-
12(Quantity in MT)
Commodity 2010-2011 2011-2012
Quantity Growth Rate (%) Quantity Gr
Fertilizers& raw 619750 -0.3 430797
materials
Food grains 8797 0 17058
Iron, Steel& Machinery 204122 82.49 43724
Newsprint 119862 40.49 132725
Cashew nut 317259 10.35 252771
Miscellaneous 13198910 3.71 14920069
Total 14468700 4.59 15780086
Source: Cochin Port Trust
Exports of Cargo both coastal and foreign, from Cochin Port increased in
2011-12 by 23.4 per cent and 28 per cent respectively. Coastal exports increased
to 14.86 lakh MT in 2011-12 from 12.04 lakh MT in 2010-11 while foreign exports
marked an increase from 22.00 lakh MT in 2010-11 to 28.25 lakh MT in 2011-12.
Both coastal and foreign imports increased by 7.3 per cent and 10 per cent
respectively during 2011-12 (see Table 4.12)
Table 4.12
Cargo Handled at Cochin Port during 2009-10 to 2011-12 (In Lakh MT)
Export Import
2009-10 2010-11 2011-12 2009-10 2010-11
12.83 12.04 14.86 42.65 48.21
23.13 22 28.25 95.68 96.47
35.96 34.04 43.11 138.33 144.68
Source: Cochin Port Trust
Marine Products
Contribution of Kerala towards India’s marine exports in 2011-12 showed a
markable increase over the earlier period both in quantity and value, an increase
by around 18 per cent. Marine exports of Kerala during 2011-12 stood at155714
MT with a value of Rs. 298833 lakh as against 124615 MT valued at Rs. 200210
lakh in 2010-11. Export details of Marine Products of Kerala compared to all India
in Quantity and Value for years 2007-08 to 2011-12 are given in Table 4.13
Table 4.13
Export Trend of Marine Products – India & Kerala 2007-08 to 2011-12
India Kerala Kerala’s share in %
Quantity (Tonnes) Value(Rs Lakh) Quantity (Tonnes) Value(Rs Lakh) Quantity

541701 762092 100318 143091 18.52

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602835 8607.94 100780 157218 16.72


678436 1004853 107293 167002 15.81
813091 1290147 124615 200210 15.33
862021 1659723 155714 298833 18.06
Source: The Marine Products Export Development Agency (MPEDA)
Cashew
The percentage share of Kerala in cashew kernel export of India, both in
value and quantity had been declining since 2006-07. Of the total exports of
cashew kernels from India in 2011-12 Kerala’s contribution in quantitative and
value terms stood around 52 per cent. This was 53.5 per cent and 52. 5 per cent
respectively in 2010-11 (see Table:4.14). The major markets for Indian Cashew
Kernels during 2011-12 were USA, UAE, Netherlands, Japan, Saudi Arabia, UK,
France, Spain and Germany.
Table: 4.14
Export of Cashew Kernels – Kerala & India (2007-08 to 2011-12) (Qty:MT,
Value :Rs.crore)
Kerala* India Share of Kerala (%)
Quantity Value Quantity Value Quantity
69298 1395.02 114345 2289.02 60.6
63730 1716.52 109523 2988.4 58.19
61698 1635.79 108120 2905.82 57.06
56578 1478.67 105755 2819.39 53.5
69149 2299.67 131760 4390.68 52.48
*Export through Cochin Port.
Source: The Cashew Export Promotion Council of India
The export of cashew nut shell liquid/cardanol from India during 2011-12
was 13575 MT, valued at Rs.59.46 crore (US $12 Million). There was an increase
of 12.7 per cent in quantity, 76 per cent in Value in Rupee terms and 67.3 per cent
in US $ terms compared to the export of 12051 MT of cashew nut shell liquid
valued at Rs. 33.77 crore (US $ 7.4 Million) during 2010-11
Import of cashew nuts into India during 2011-12 was 809371 MT valued at
Rs.5337.76 crore and that of 2010-11 was 529370 MT having a value of
Rs.2649.56 crore. Import through Cochin Port during 2011-12 was estimated as
252771 MT, a decline of 20.3 per cent against 2010-11
Coffee
Coffee Production in India during 2011-12 was estimated at 320000 MT.
Though this amounts only to 4.5 per cent of the World’s coffee production, India
exports 70-80 per cent of its output. Indian coffee exports in quantity terms was
324052 MT valued at Rs.4544 crore in 2011-12.
Kerala produced 68350 MT of coffee during 2011-12 (while neighbouring
states like Karnataka produced 226355 MT and Tamilnadu 18390 MT) and
exported 115359 MT valued at Rs. 1146.29 crore. This export through Cochin Port,
registered an increase of 36 per cent over 2010-11. Export of coffee in 2010-11
was 84792 MT valued at Rs. 689.20 Crore.
Tea
Exports of tea through Cochin Port during 2011-12 was 111137 MT valued
at Rs 464.7 Crore. The quantity of export is less than that of 2010-11, (111366

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MT). However, due to a fall in the price of tea in 2011-12, the value earned was
only Rs. 436.2 crore.
Coir and Coir Products
Exports of Coir and coir Products from India recorded an increase of 28 per
cent in quantity and 30 per cent in value during 2011-12. This is a very high level
of exports and the highest that has ever been achieved. The total export was
410853.90 MT valued at Rs.1052.63 crore.
However, exports of coir and coir products through Cochin Port continued
to decrease in 2011-12 also. Quantity of exports in 2010-11 was 131046 MT
valued at Rs. 406.9 crore. This decreased to 122521 MT valued at Rs. 400.5 crore
in 2011-12. Items of export include coir mat, coir yarn and other coir products.
China is the major importer among 112 countries for coir and coir products from
India, its share being 30.2 per cent.
Spices
Export of spices from India during 2011-12 has registered an increase of 9
percent in quantity and 43 percent in value. Exports which was 525750 MT with
value of Rs. 6840.71 crore (US$1502.85 million) in 2010-11 reached a level of
575270 MT and Rs. 9783.42 crore (US$2037.76 million) respectively in 2011-12.
Kerala exports spices mainly through Cochin and Thiruvananthapuram
ports. During 2011-12 spices exports through Kerala ports was 97079.26 MT
valued at Rs. 3200.32 crore. Compared with 2010-11, there is an increase of
23345.88 MT in quantity (32 per cent) and Rs.1315 crore in value (70 per cent).
This rate of increase in quantity as well as value is an all time record . Pepper,
cardamom, chilli, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek,
other seed spices, garlic, tamarind, nutmeg & maize, other miscellaneous spices,
curry powder/mixture, spice oils and oleoresins and mint products are main items
exported through the ports of Kerala.
During 2011-12 export of all spices except celery, other miscellaneous
spices, spice oils & oleoresins and mint products have recorded increase, both in
quantity and value, over the previous year. Export of pepper increased from
16294.97 MT (valued at Rs. 330.61crore) in the year 2010-11 to 24016.94 MT
(valued at Rs.797.10 crore) in 2011-12. Export of pepper which was declining
since 2008-09 began to revive in 2011-12. About 90% of pepper export from India
is contributed by Kerala both in quantity and value. Item wise export of spices
through Cochin and Trivandrum ports in Kerala in 2011-12 is furnished in Table:
4.15.
Table: 4.15.
Item wise export of spices through Cochin & Trivandrum Ports in Kerala in
2011-12

SI.No. Item 2011-12


Quantity (MT) V
1 Pepper 24016.94 7
2 Cardamom(Small) 3611.15 2
3 Chilli 21568.42 2
4 Ginger 5962.77 9
5 Turmeric 10350.17 1
6 Coriander 3030.28 2
7 Cumin 1282.48 2

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8 Celery 497.24 4
9 Fennel 288.08 3
10 Fenugreek 763.84 7
11 Other Seed Spices 263.19 3
12 Garlic 217.26 2
13 Tamarind 1799.95 1
14 Nutmeg& Maize 2251.76 1
15 Other Misc. Spices 6655.18 4
16 Curry powder/Mixture 8098.46 1
17 Spice Oils& Oleoresins 6397.45 1
18 Mint Products 9.43 2
Total 97079.26 3
Source: Spices Board
(D) EDUCATION IN KERALA
Kerala has achieved a well developed educational system through the
progressive State policies in education, community involvement in developing and
sustaining village schools and Madrassas, efforts by Missionaries and indigenous
Christian organizations and efforts by various associations formed by other
communities (like SNDP by the Ezhava Community and NSS by the Nair
Community). Their efforts to establish schools and enroll children have played a
significant role in shaping the educational progress of the Kerala state.
Modern Education in the former Travancore State began with the
Proclamation of 1844 by the Maharaja of Travancore that those educated in
English school would be given preference in Public Service. Government
established the Raja's Free School at Thiruvananthapuram as early as 1834 and it
was the first school to import English education in the former Travancore State. In
the former Cochin State, the Govt. comes in to the field of education in 1818 with
the Proclamation, by which there established 33 Vernacular schools. The study of
English language was helped by the missionary Rev. Dawson who opened on
English school at Mattancherry in 1818. Thereafter, English schools were opened
at Thrissur, Thrippunithura and Ernakulam. In 1868, the first batch was presented
for the Matriculation examination. In Malabar area, the Local Boards Act of 1834
helped the establishment of schools. Later, the Elementary Education Act enabled
the establishment of several Elementary schools and grant-in-aid was paid to
Private schools by the District Educational Councils. From 1939 onwards, the
disbursement of grant-in-aid to private schools was done by the District
Educational Officers. The progressive educational policies of enlightened rulers of
the erstwhile states of Travancore and Cochin and the educational activities
initiated by the Christian Missionaries and other social organizations yielded
remarkable development in the field of education in the State even before
Independence.
The Private Secondary School Scheme was introduced in Travancore-
Cochin from 1st December 1951 onwards. Payment to the teachers of private
schools was mace direct from the treasury from that date. Payment to non-
teaching staff of private schools was mode by management till 31st June 1959.
The Kerala Education Act and Kerala Education Rules come in to force with
effect from 1st June 1959. The post of the Director of Public Instruction was
included in IAS cadre from the year 1960-61. The Examination Section which was
functioned as port of the Directorate of Public Instruction was separated and

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Commissionarate of Govt. Examinations (Pareeksha Bhavan) was started with


effect from 1st Oct. 1964 under the Directorate of Public Instruction. The Director
of Public Instruction has been continuing as the Commissioner for Govt.
Examinations since 1964. During the year 1956-57 there were 10,079 institutions
under the Education deportment in the Kerala State. These consisted of 17 Arts
and Science colleges in the Cochin and Malabar areas, two training colleges at
Thrissur and Kozhikode, one post graduate training college at Thrissur, one
Physical education college at Thiruvananthapuram, 762 High school, 1589 Middle
schools, 6699 Primary schools, 87 Training schools, 7 Music and Fine arts
schools, 5 schools for the physically handicapped, 33 Fisheries schools, 13
Nursery and Kinder Garden schools, 6 Technical schools, 2 Certified schools, 460
Basic schools, 32 Social Education Centers and 363 other special schools. Of
these, 2129 were Govt. institutions and the remaining 7950 were under private
management.
At present, there are 12271 Schools consists of 6712l L.P. Schools, 2951
U.P Schools and 2608 High Schools in the State. Of these, 4492 are Government
Schools (2551 LP, 957 UP and 984 HS), 7282 are Private aided Schools (4003 LP,
1870 UP and 1409 HS) and 497 are Private Unaided Schools (158 LP.124 UP and
215 HS). In addition to these, there are 102 Teachers Training Institutes, 43
Special Schools for the handicapped children and 8 Anglo Indian High Schools.
During the year 1956-57, the enrolment of students was 2709271. It
increased steadily and reached a maximum of 5901101 in 1990-91. There
onwards the trend was reversed. The present enrolment is 4881585. The
percentage of women to the total number of teachers significantly increased during
the last five decades. It was 41% in 1956-57,50% in 1976-77 and 68% in 2002-03.
There is a slight decrease in the drop out rate during the last 5 years, which is an
encouraging feature.
In accordance with the National Policy of Education (1986), District Institute
of Education and Training (DIETs) were established In 14 districts of the State. The
main function of DIETs is to provide academic and resource support at district level
for the success of various program being undertaken in the field of primary and
adult education.
The Vocational Higher Secondary Education was introduced In the State
during 1983-84. It is designed to prepare skilled work force in the middle level in
one or more group of occupations, trade or job after matriculation at 10+2 stage of
Education. The objective of the course is to enhance individual employability to
provide an alternative for those pursuing higher education without particular
Interest or purpose. Consistent with the National Policy of Education (1986),
Government have decided to de-link Pre degree Courses from Colleges in a
phased manner and to Introduce 10+2 system in High schools of Kerala.
Accordingly, Higher Secondary Course was introduced during the year 1990-91 as
a step for reorganizing the secondary and collegiate education. The above two
courses are functioning in High Schools by upgrading the classes, but the
Administrative control is vested with separate Directorates.
The District Primary Education Program (DPEP) introduced in the State
during 1994-95 was discontinued and a new scheme - Sarva Siksha Abhliyan
(SSA) has now been started to universalize Elementary education by community
ownership of the school system. The State Council of Educational Research and
Training (SCERT) was established in the year 1994 as an autonomous
organization by reorganizing the State Institute of Education (SlE) to provide

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academic support to General Education in the State. The Director of SCERT is the
head of the Organization. It has a general body with the Hon'ble Minister for
Education as chairman. A governing body with Secretary to Govt.(Gen.Edn) as
Chairman and the Director of Public Instruction as Vice-Chairman supervises the
functioning of SCERT.
In brief, there was enormous expansion of educational facilities in the State
since Independence. The development of Education over the years was
tremendous.
As literacy development is concerned; Kerala has the distinction of being a
historic state in India so far. Kerala’s literacy rate is comparable to the most
advanced regions of the world. Kerala’s literacy rate which was only 47.18% in
1951 has almost doubled to 93.91% in 2011. Male, female literacy gap which was
21.92% in 1951 has narrowed down to 4.04% in 2011.
The School Education
There were 12644 schools in Kerala during 2011-12. Out of these 4620
were government schools, 7161 aided schools and 863 unaided schools. In the
state, during 2011-12, 56.66% of total schools were aided schools, 36.5%
government schools and 6.8% unaided schools. Compared to government upper
primary and high schools more number of LP schools are functioning under
government sector. Aided schools outnumber government schools in all sections.
Malappuram District has the largest number of schools (1472) in the State
followed by Kannur (1293) and Kozhikode (1237). Malappuram District has also
the largest number of government (546) and unaided schools (145) in the State.
But largest number of aided schools is functioning in Kannur district (961). In the
State 946 schools are offering syllabus other than the one prescribed by the State
Government. These include 797 CBSE schools, 108 ICSE schools, 27 Kendriya
Vidhyalaya and 14 Jawahar Navodayas. One Jawahar Navodaya Vidhyalaya
schools each is functioning in all the districts.
Higher Secondary Education
Education after the first 10 years was a part of the higher education system
for many decades. Higher Secondary courses were introduced in the state during
1990-91 to reorganize the secondary level of education in accordance with
National Education Policy. Higher Secondary Course is the turning point in the
entire school education in our state. The department serves as a professional
institution in formulating and maintaining the standards of Higher Secondary
Education and in providing need based timely, scientific, effective and sustainable
services to the students and teachers at the Higher Secondary level. 1836 Higher
Secondary schools were there in 2012 in the state. Out of these 755 (41.2%) are
Government schools, 668 (36.4%) are Aided schools and the remaining 413
(22.5%) are Unaided schools. Among the districts Kozhikode has the largest
number of Higher Secondary schools (223 nos) in the state followed by Thrissur
and Ernakulam (176 each ) districts respectively. Now the govt: policy is allowing
Higher Secondary Schools to every panchayaths in the state.
Vocational Higher Secondary Education
Vocational Higher Secondary Education was introduced in the state in
1983-84 Vocational Higher Secondary Education in the state impart education at
plus two level with the objective to achieve self/wages/direct employment as well
as vertical mobility. The course is designed to prepare skilled work force at middle
level in one group or more of occupations, trade or job after matriculation at 10+2
stage of education. 389 Vocational Higher Secondary Schools are there in the

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state with a total of 1099 batches. Out of these 261 are in the Government sector
and 128 in the Aided sector. Kollam District ( 52 nos) has the largest number of
Vocational Higher Secondary Schools in the state.
University and Higher Education
There are a total of 9 universities functioning in the state. Out of these four
universities viz. Kerala, Mahatma Gandhi, Calicut and Kannur are general in
nature and are offering various courses. Sree Sankaracharya University of
Sanskrit, Cochin University of Science and Technology and Kerala Agricultural
University offer specialized courses in specified subject areas. Besides these, the
National University of Advanced Legal Studies (NUALS) established in 2005 and
the Central University established in Kasargode district are also functioning.
Arts and Science Colleges
Including 150 Private Aided Colleges and 41 Government Colleges there
are 191 Arts and Science Colleges in the State. Ernakulam district (25nos) has the
largest number of Arts and Science colleges in the state followed by Kottayam (22
nos), Thiruvananthapuram (20 nos) and Thrissur (20 nos) districts.
Thiruvananthapuram district has the largest number of Government colleges (8
nos) in the state.
Technical Education
Directorate of Technical Education is the nodal department for Technical
Education in the state. Details of technical institution, under the administrative and
financial control of the Directorate of Technical Education are given in Table 4.16.
Table 4.16
Technical Institutions under Directorate of Technical Education-2012
Institutions Nos
Government Engineering Colleges 9
Private Aided Engineering Colleges 3
Government Polytechnic Colleges 36
Government Women's Polytechnic Colleges 7
Private Aided Polytechnics 6
Fine Arts Colleges 3
Government Technical High Schools 39
Government Commercial Institutes 17
Tailoring and Garment making training centres 42
Vocational Training Centres 4
Unaided engineering Colleges 141
Total 307
Source: Directorate of Technical Education
Achievements in Education
1. High literacy
2. Low gender difference
3. Low dropout
4. High enrolment ratio
5. Better primary education
6. No discrimination in education
7. Better results
8. Universalisation of Primary education
New Challenges to Education
1. Lack of quality education
2. Low enrollment ratio of males in higher education

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3. Political interference
4. Religious or Community interference
5. Over influence of private
6. Out dated syllabus
7. Lack of technical education
8. Lack of vocational education
9. Over emphasis on arts subjects
10.Problems related to bureaucratic set up
11. Delay in publication of results
12.Mismanagement of allotted funds
13.Problems in pedagogy
14.Poor performance of the students
(E) HEALTH SECTOR IN KERALA
Kerala has a long history of health care. Even before the advent of the
Allopathic medicine Kerala was in the care of indigenous Ayurveda medicine. Now
in the state along with this Allopathy, Homeopathy and Unani are working
effectively. It is said that the commendable achievements that gained by the
Kerala state in birth rate, death rate, gender equality, life expectancy, infant
mortality, maternal mortality etc is due to the well health care facilities provided
by the state. This has been considered as a paradox, ‘good health at low cost’.
The latest India Human Development Report 2011 placed Kerala on top of all the
other states in India, because of easy accessibility and coverage of medical care
facilities. The State is reported to have the lowest rural-urban inequalities in public
health status. The success of Kerala health indicators is more due to the
investment in the social capital rather than only in the public health care, resulting
in a more accountable and integrated primary health care system High levels of
education especially among women and greater health consciousness have
played a key role in the attainment of good health standards in Kerala.
Health sector in Kerala is at a cross road. Early success in reducing
mortality has led to an ageing population suffering from degenerative diseases
associated with the demographic shift. The morbidity rate is high as compared to
the national estimate which is 25.15 and 9.11 respectively according to the 2004
estimate. As a result of surpassing all the Indian states in morbidity rate, the state
is suffering with the prevalence of chronic and acute illness like diabetes, heart
diseases, mental, asthma, blood pressure, cancer etc. Having abandoned the
public health strategies that helped the State control communicable diseases in
the past the State is witnessing the re-emergence of these diseases. Increase in
alcoholism and accidents are worrying the state. Kerala has to recapture the basic
structure and policies that helped us reduce mortality in the past and to develop
the capacity to deal with the problems associated with non-communicable which
now affect all segments of the population.
Health Care Infra structure in Government Sector
The Health Care system in Kerala comprises mainly under three heads
namely Alopathy, Ayurveda and Homoeopathy. The Health infrastructure consists
of 2724 institutions with 52893 beds. Besides there are 5403 sub centres under
Directorate of Health Services .Out of the total institutions 46.44% are under
Allopathy, 32.2 % under Ayurveda and 21.36 % under Homoeopathy department.
Medical services are also provided through the co-operative sector and the Private
sector. There are 74 hospitals with 6767 beds under the Co-operative sector in the
State.

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Table 4.17
Health Infrastructure in Government Sector during 2011
Institutions Beds Patients treated

IP
S) 1255 37750 1831724
ME) 10 10079 347334
M) 874 2860 41102
dical Education 3 1259 9072
y 582 945 53442
2724 52893 2282674
Source: Allopathy, Medical Education, Ayurveda and Homoeo Departments
Table 4.18 shows the basic health indicators of both Kerala and India during 2011.
Table 4.18
Basic Health Indicators 2012
Kerala India
14.8 22.1
7.0 7.2
13 47
ation) 2 15
h) 81 212
1.7 2.6
62.3 52
71.4 62.6
76.3 64.2
74.0 63.0
Source: Directorate of Health Services
Department of Health Services
The department of Health Service is formed mainly for the establishment
and maintenance of medical institutions with necessary infrastructure. It offers
services such as control of communicable diseases, Family Welfare services
including maternal and child health services, implementation of National control /
eradication programmes, providing curative services and administration. Details of
major medical institutions under DHS during 2010 & 2011 are shown in Table 4.19
below. There are 1254 institutions and 37177 beds under the Directorate of Health
services which include 835 Primary Health Centres, 237 Community Health
Centres, 78 Taluk Hospitals, 17 TB clinics/ centres, 29 grand- in- aid institutions
and 3 leprosy control clinics/units. Besides, there are 5403 sub centres. Out of the
835 PHCs, 174 are now categorized as 24x7 PHCs.
Table 4.19
Major Medical Institutions Under DHS (No.)
2010 2011

MCH Centres) 835 835


237 230
Hospitals 95 103
24 25
17 17
29 29

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3 3
5403 5403
Source: Directorate of Health Services
Medical Education
There are 23 Medical Colleges in the State of which only five are in the
public sector. Medical Education in the Government sector in the State is imparted
through five Medical Colleges, three Dental colleges and five Nursing colleges.
Government has announced the intention to start four new Medical Colleges in
Idukki, Kasargod, Pathanamthitta, Harippad and Malappuram during 2011-12.
Ayurveda
The Department of Indian System of Medicine has 119 Hospitals and 745
dispensaries across the State. Besides, there are around 900 small to medium
size Hospitals in the private sector. The Directorate of Ayurveda Medical Education
manages 16 institutions; 3 are in Government sector, 2 in private sector (Aided)
and 11 in self financing sector.
Homoeopathy
The Department of Homoeopathy has 551 dispensaries and 30 Hospitals
with total bed strength of 945. Out of the 30 Hospitals, 13 are District Hospitals
and 17 Taluk Hospitals. In addition, Kerala State Homoeopathic Co-operative
Pharmacy (HOMCO) Alappuzha, a medicine manufacturing unit is also functioning
under the Directorate of Homoeopathy. Under Homoeo Medical Education, there
are two Govt. Homoepathic Medical Colleges, one functioning at
Thiruvananthapuram and the other at Kozhikode.
MAJOR DISEASES IN KERALA
1. Life Style diseases
Longevity and changes in life style have contributed to the growth of chronic
and
degenerative diseases also referred to as non-communicable diseases. These
include diseases such as heart disease, stroke, high blood pressure, cancer and
diabetes.
It is estimated that there are about 1.5 million diabetic patients in Kerala.
These people need lifetime management involving lifestyle modifications, drugs
and diet. Recent surveys in different categories of subjects in Kerala reveal that
one out of three adults in Kerala is a hyper tenssive. Hyper tension leads to heart
attacks, stroke and kidney failure. It is a lifelong disease and needs careful and
sensible management throughout life. Alcohol consumption is increasing in the
State.
According to WHO estimates, there are about 2 billion people who consume
alcoholic beverages and 76.3 million with diagnosable alcohol-use disorders.
Excessive drinking can cause a variety of health problems. More than 72 per cent
accidents on national highways were related to drunken driving. Domestic violence
is also on the increase due to high alcohol consumption. Alcohol related diseases
are growing. Chronic alcohol use can lead to adverse immunological
consequences resulting in poor response to medication and avoidable mortality.
Similarly, over weight and obesity leads to heart attack, hypertension, breast
cancer, and diabetes and diseases of bones and joints.
2. Communicable Diseases
Kerala which had effectively eliminated indigenous malaria through public
health

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measures are finding it difficult to deal with communicable diseases like


Chikungunia, Dengue fever, Malaria, Leptospirosis, Cholera, and Typhoid. We
need to have a systematic programme to deal with each communicable disease,
based on their seasonality, to prevent them and manage complications that arise
from their incidence.
3. Cancer
Cancer is a major disease that affects all sections of human population.
Every year 35000 new cases of Cancer are detected in Kerala. It is estimated that
almost 5 lakhs of persons will develop cancer every year in the country and in any
given year there will be almost 15 lakhs cancer patients.
4. Aids
The estimated number of people infected with HIV in Kerala is 55167 in
2010. The route of HIV transmission in Kerala is categorized as heterosexual 82%,
homosexual 2%, through injection and drug use 7.85%, mother to child 7%,
through blood /blood products 1% and unspecified 5.5%.
5. Mental Health
Mental health problems including higher suicide rates, health problems and
death due to road traffic accidents are increasing. Total number of suicide in the
state is 8556 during 2010. Compared to other states suicide rate among
youngsters and family suicide are also on the higher side in Kerala. During 2010,
19.2% of the suicides were in the age group 15-29. Sex distributions of the suicide
victims are also significant. Suicide is more among males (74%). The Male female
ratio is 2.8:1. But the suicide attempts are high among the females. Rates of
suicide are higher among those with physical disorders than among other people,
this is especially marked in elderly people. Depression is associated with reduced
levels of functioning of immune system and an increased risk of other physical
disorders People suffering from chronic physical conditions such as 'heart disease,
diabetes and cancer have a heightened probability of developing mental disorders
such as depression. The percapita alcohol consumption is 8 liters which is higher
than the national average of 1.8 liter and international average of 5 liter and stood
top among the Indian states.
Actions to be taken
1. Control and Management of Communicable diseases:
2. Prevention and management of lifestyle related diseases:
3. Prevention of accidents, trauma care:
4. Reduction of mortality and morbidity, IMR, MMR:
5. Mental Health:
6. State specific treatment protocols, referral systems, quality of care, safety:
7. Health of the aged and palliative care:
8. Infrastructure:
9. Health Manpower Medical education training:
10.Health Care Financing:
11. Governance for a good medical sector
Achievements of Health Sector in Kerala
Kerala enjoys a unique position in the health map of India. The health
indicators in Kerala are at par with the Western world. The important achievements
are the following.
1. Low Birth and death rate.
2. Low infant mortality rate.

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3. Low child mortality rate.


4. Low Maternal mortality Rate.
5. Low cost medical facilities.
6. High life expectancy
7. High Couple protection rate.
8. High percapita medical expenditure.
9. High public and private participation in medical facilities.
10.Good medical infrastructure facilities.
11. Good Public health information system.
12.Good sanitation facilities.
13.Equality in rural-urban medical facilities.
14.Expansion of primary health care centers.
15.Institutionalization of delivery.
16.More gender equality.
17.Nearly full immunization.
New Challenges to the Health Sector in Kerala
1. Spread of modern diseases.
2. Aging of the population.
3. Increase in suicide rate.
4. Increase in cost of medical facilities.
5. Death due to road accidents.
6. Mental health problems.
7. High Morbidity rate.
8. Prevalence of life style diseases.
9. Lack of infrastructure and trained personals.
10.Poor performance of the public sector.
11. Emergence of private sector.
12.Alcoholism.
13.Obesity.
14.Lack of physical exercise.

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15.Increase in female foeticides.


16.Increase in communicable diseases.
17.Increase in low weight new born babies.
18.Increase in stress and strain
19.Unhealthy food habits.
20.Marginalization of the backward classes.
21.Child sex ratio is infavour to the male.

22.Nutritious problems.
Reference
1. Centre for Development Studies – Poverty Unemployment and Development
Policy -
Trivandrum
2. CDS and Kerala State Planning Board – Human Development Report Kerala
-2007.
3. V.K. Ramachandran on Keralas Development Achievements. In Sen & Dreeze –
India
Selected Regional Perspectives. - Oxford
4. Kannan. K.P – Health and Development In Rural Kerala. KSSp Ko zhikode.
5. Kunhikannan. T.P & Aravindran K.P : Health Transition in Rural Kerala. KSSP
Kozhikde
6. K. C. Sackaria et.al Kerala is Gulf Connections. –CDS Thiruvandapuram.
7. Various Issues of - Economic Review, Census Report, Statistics for Planning.
8. Rajan K (Ed) – Kerala Economy : Trends during the post Reform period –
Serials
Publications

Objective Type Questions


1. The percentage of forest to the total geographical area in Kerala is:
(a) 28% (b) 23% (c) 36% (d)40%
2. The total geographical area of Kerala in 2011-12 is:
(a)1081509 Ha (b) 3886287Ha (c)399924Ha (d)None
3. The total cropped area in Kerala to the total geographical area is
(a) 21% (b) 90% (c) 68% (d)40%
4. Among the total crops which covers the largest area in 2011-12 ?
(a)Rice (b)Rubber (c)Arecanut (d) Coconut
5. The percentage of food crops to the total crops in Kerala in 2011-12 is :
(a)40% (b)10.8% (c)32.5% (d)None
6. Among the total crops which has highest productivity in 2011-12 ?
(a)Rice (b)Rubber (c)Tapioca (d) Coconut
7. Among the total crops which has highest production in 2011-12 ?
(a)Rice (b)Banana (c)Tapioca (d) Rubber

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8. Kerala Land Reforms (Amendment ) act was came into force in:
(a)1970 (b)1969 (c)1956 (d) 1974
9. The first factory in Kerala was started at:
(a)Allappuzha (b)Quilon (c)Kozhikode (d) None
10. The golden era of Kerala’s industrial development is related with:
(a)Zamoodiri (b)Tipusulthan (c)Sir.C.P (d)None
11. The total number of PSEs in Kerala is:
(a)102 (b)67 (c)144 (d)44
12. The number of Public Joint stock Companies in Kerala as on 2012 March is
(a) 7 (b) 67 (c) 11 (d) 23
13. The largest agro based industry in Kerala is:
(a)Handloom (b)Coir (c)Bamboo (d) None
14. The First Technology Park in India is:
(a) Cyber park (b)Infopark (c) Technopark (d)None
15. Keltron was founded in
(a)1970 (b)1969 (c)1956 (d) 1973
16. Tourism was recognized as an industry in Kerala
(a)1970 (b)1986 (c)2000 (d) 1991
17. Leading tourist destination in Kerala is:
(a) Thiruvananthapuram (b) Ernakulam (c) Pathanamthitta (d) None
18. The percentage of contribution of tourism to GSDP in Kerala in2011-12 is:
(a) 21% (b) 10.8% (c) 9%(d) None
19. The lion’s share of trade operations in the State is taking place through:
(a)Railway (b)Airways (c)Both (d) Cochin Port
20.Among the items which is highest exportable value product?
(a) Cashew Kernels (b)Tea (c)Spices (d)None
21. Kerala was top in the production of:
(a)Rice (b) Banana (c) Rubber (d) All
22. The District Primary Education Program (DPEP) introduced in the State
during:
(a) 1994-95 (b)1995-96 (c) 1996-97 (d)1998-99
23. The district with largest number of out-migrants from Kerala is:
(a) Kottayam (b) Ernakulam (c) Palakkad (d) Malappuram
24. The single largest source market of Kerala for foreign tourist visits is:
(a)United Kingdom (b) USA (c) UAE (d) None
25. The largest number of emigrants originated from:
(a) Kottayam (b) Ernakulam (c) Palakkad (d) Malappuram
26. Kerala Migration Survey 2011 is conducted by:
(a)Kerala Government (b) Planning Board (c) CDS (d) None
27. The Kerala state was formed in:
( a)1954 (b) 1955 (c)1956 (d)1957
28.Which is referred as the heath paradox in Kerala:
(a) Good health at high cost (b) Good health at low cost (c) Both incorrect
(d) None
29.The threats to Tourism industry in Kerala does not include:
(a) Global warming (b) changing weather patterns(c) Safety (d) All
30. The Couple protection rate in Kerala according to the 2011 estimates:
(a) 62.3% (b) 52% (c) 48% (d) 58%

ANSWERS

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1. 28%
2. 3886287Ha
3. 68%
4. Coconut
5. (b)10.8%
6. (c)Tapioca
7. Rubber
8. (a)1970
9. (b)Quilon
10.(c)Sir.C.P
11. (d)44
12.(a) 7
13. (b)Coir
14.Technopark
15.(d)1973
16.(b)1986
17.Ernakulam
18.9%
19.Cochin Port
20.(a)Cashew Kernels
21.(a)Rubber
22.(a)1994-95
23.(c )Palakkad
24.(a)United Kingdom
25.Malappuram
26.CDS
27.(c)1956
28.(b) Good health at low cost
29.(d)All
30.(a)62.3%

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