Kerala- state has no industrial activity?Can somebody help?

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.

Dodgy debt and dozing Oil Company executives?

The Oil Companies are at their tricks once again. From today, the Petrol prices will increase by Rs 1.35 paise to offset the loss of Rs 1048 Cr due to selling Petrol below Cost. Only on the 15th May, these Oil Cos raised the price of Petrol by Rs 5/- per litre. The explanation from the Government: We have nothing to do. It is the oil Companies who have raised the price to bridge the shortfall in the price of crde and cost of refining. Oil Companies aver that high prices of crude and huge debt burden of oil companies makes it imperative to raise prices though they would like to shed a tear for the common man reeling from price rise especially the inflation factor. We, the am admi, must thank these Oil Cos for their consideration.

But let us just look at these statistics, which have been released as advertisements by the Oil Companies.

1. Indian Oil Corporation says that it has made a Profit of Rs 7445.48 Cr, and the actual growth in sales in the III & IV Quarter was 138.9%. Sale proceeds stood at Rs 3,28,744.27 Cr (the highest sale rate in its history). They have also declared Rs 9.50 per share which is considered to be a handsome dividend.

2. Bharat Petroleum is showing a net profit of Rs 1,63,496 lakhs (2010-11) against Rs 1,63,236 lakhs during 31-3-2010 . Total income was recorded as Rs 48,311,46 Cr against Rs 40,07,155 Cr ( 205% growth). The company is said to have spent for refining crude at US $ 4.47 per barrel (previous year $ 2.97 per barrel). In the previous year, dollar value was low, and Rupee value was high. This year also, the Rupee value maintained the same position. Hence when all the prices are shown in Rupees, Bharat Petroleum shows the refining prices in Dollars.

3. ONGC has placed a full page advertisement with the heading, "The way to bigger achievement lies in the path less travelled". Hurray! Income of ONGC stood at Rs 121,929,29 Cr (2010-11) against Rs 103,438.85 Cr (2009-10), with a net profit of Rs 22,455.93 Cr against Rs 19,403.53 Cr last year. Aditional shares have been allotted and a dividend equivalent to Rs 642 Cr and special interim dividend of Rs 6844 Cr paid on Dec 2010. The total dividend paid alone accounted for Rs 7486 Cr!!

4. Oil India Ltd records a profit of Rs 2883.73 Cr.2010-11 Government had provided a subsidy of Rs 40,912 Cr. 1 litre of petrol has a Central excise of Rs 8/- and Customs duty.

Oil Cos are pretending dodge debts and dozing returns? Does the level of economic output justify its spending and lifestyle of its employees (of Oil Companies?) The dividends are all transferred to GoI which never figure in the accounts. Government gets all. Plunder?