Kerala is a consumer state with manufacturing output and manufacturing industries in the micro, and small sectors doing very little to increase industrial output. The states GDP vis-à-vis manufacturing sector may well be negative. Kerala entire income is derived from the service sector, hospitality sector, tourism, gold and jewellery, thriving liquor industry.
Kerala came up with the Land Reforms Act. Though it was a brave attempt, fragmentation of land limited agriculture, coconut plantations which became homestead, and large scale farming became impossible and the cost: benefit analysis was not favourable to the farmer.
The fisheries industry in India, on which the economy of most of the places were bound, caught up with modernization, and herd, which resulted in the traditional fishing industry non thriving. The mechanized boats, trawlers, saw the ruin of traditional fishermen. And the organized industry of speed boats and trawlers, were owned by people who were from outside the states. With the result, the fisheries economy, did not find change of hands in Kerala through goods and services.
Kerala is the home to many traditional industries like coir, coconut, rubber, etc. Though these industries are export centric, their capacity and production is so feeble that Kerala does not even contribute 3% of the total Indian exports of US $ 275 billion. Kerala’s exports include Spices, marine products, cashew, tea, coffee, rubber, coir, coconuts, etc. The entire manufacturing sector include one or two big tyre companies, rubber chapels, light engineering, software, ship building unit (government owned), etc. Kochi Port which was way back one of the finest natural all-weather Port, is mainly known for import of cargo, with lot of idle space. The Vallarpadam transshipment container will succeed, if the containers meant for various Ports with mother ships are received here. But it is a tall order.
There is a strong pillared private sector education institutes which provide specialized post-graduate education. It is the private sector investment in educational institutions, hospitals that had made Kerala a highly literate state with high medical facility.
If you want vegetables, Kerala depends on Tamilnadu. For chicken, again Tamilnadu. It is perhaps the only state where kerchiefs are not manufactured or stitched. It is a state where 'service industry' is the economy.
God’s Own Country brand has attracted tourists all over the world. It is the private investment again that has been able to attract low end and medium end tourists to the state of Kerala. Kerala is not the destination for high end tourist.
Kerala’s employment bastion is overseas. Malayalam speaking nurses are all over the World. There can hardly be a hospital in India where you do not have Kerala nurses. With a good demand across the world, Kerala nurses are in every hospital everywhere. The skiled workers are all over the place except in Kerala. Today, the vacant places have been filled by people from Bihar, Bengal, Orissa,, and other states with the least opposition from the militant Kerala labour. There are many Restaurants which bring the staff also from where the entrepreneur hails.
There is a strong view by Economists that the money order economy is responsible for Kerala’s economic growth triggered by income growth and not due to equitable development. This is not hundred percent true, though correct to an extent.
The state political leadership lacks a vision, a perspective industrial Policy imbued with export Policy to make the state an attractive preposition for industrialists. We have the most sophisticated modern Cars on Kerala Roads which are full of holes and pits. We have the most primitive drainage and sewage system. We still depend upon the age old system of throwing wastes on the thoroughfares. The civic amenities provided by the Corporations and Municipalities are of a low order. We have craze for gold ornaments. High rise buildings. Fancy cars. The hot drinks are a favourite pastime of our households. Cinema is a passion. Construction activity is a wholesale industrial activity.
We have 44 rivers with water to the brim, 41 flowing west draining water to the Arabian Sea. Three are east flowing. One upon a time, we sold electricity produced. Today we are borrowing electricity. We are in the 20th place in the per capita consumption of Water after Rajasthan.
We have Kathakali. Many of our poets have been awarded the Jnanapeed Award. We have an intellectual population and a fair amount of newspaper circulation, having the highest density in terms of readership in the Country. We have ancient temples, mosques and churches. There is Sabarimala, Guruvayoor, and Sri Padmanabha Swami Temple. Adi Sankara is our own man. The architect of Green Revolution, Dr M S Swaminathan is from Kerala.
But Kerala did not have a Sir Visheshwaryya , or a Naidu, or a CV Raman, who could trigger the resources to industrialization. It is a mind set. It is a ritual.
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