Economy
Main article: Economy of Kerala See also: Category:Industries based in KeralaAfter independence, the state was managed as a democratic socialist welfare economy. From the 90s, liberalisation of the mixed economy allowed onerous Licence Raj restrictions against capitalism and foreign direct investment to be lightened, leading to economic expansion and increase in employment. In the fiscal years 2007–2008, the nominal gross state domestic product (GSDP) was 162,414.79 crore (US$29.56 billion). GSDP growth; 9.2% in 2004–2005 and 7.4% in 2003–2004 had been high compared to average of 2.3% annually in the 80s and between 5.1% and 5.99% in the 90s. The state recorded 8.93% growth in enterprises from 1998 to 2005, higher than the nation's rate of 4.80%. Human Development Index rating is the highest in India; 0.790. This apparently paradoxical "Kerala phenomenon" or "Kerala model of development" of very high human development and not much high economic development resulted due to a stronger service sector. Kerala's economy depends on emigrants working in foreign countries: mainly in the Persian Gulf countries such as United Arab Emirates or Saudi Arabia), and remittances annually contribute more than a fifth of GSDP. As of 2008, the Gulf countries altogether had a Keralite population of more than 2.5 million, who send home annually a sum of US$6.81 billion, which is more than 15.13% of remittance to India in 2008; the highest among Indian States.
The service sector; including tourism, public administration, banking and finance, transportation, and communications accounted for 63.8% of the GSDP in 2002–2003 while the agricultural and fishing industries had together 17.2% of the GSDP. Nearly half of Kerala's people are dependent on agriculture alone for income. Around 600 varieties of rice which are Kerala's most important staple food and cereal crop are harvested from 3105.21 km2; a decline from 5883.4 km2 in 1990. While, 688,859 tonne paddy are produced per annum. Other key crops include coconut; 899,198 ha, tea, coffee; 23% of Indian production, or 57,000 tonnes), rubber, cashews, and spices—including pepper, cardamom, vanilla, cinnamon, and nutmeg. Around 1.050 million fishermen haul an annual catch of 668,000 tonnes as of 1999–2000 estimate; 222 fishing villages are strung along the 590 km coast. Another 113 fishing villages dot the hinterland. Kerala's coastal belt of Karunagappally is known for high background radiation from thorium-containing monazite sand. In coastal panchayats, median outdoor radiation levels are more than 4 mGy/yr and, in certain locations on the coast, it is as high as 70 mGy/yr.
Traditional industries manufacturing items; coir, handlooms, and handicrafts employ around one million people. Around 180,000 small-scale industries employ around 909,859 Keralites; 511 medium and large scale manufacturing firms are located in Kerala. A small mining sector of 0.3% of GSDP involves extraction of ilmenite, kaolin, bauxite, silica, quartz, rutile, zircon, and sillimanite. Home gardens and animal husbandry also provide work for many people. Other major sectors are tourism, manufacturing, and business process outsourcing. As of March 2002, Kerala's banking sector comprised 3341 local branches; each branch served 10,000 persons, lower than the national average of 16,000; the state has the third-highest bank penetration among Indian states. On 1 October 2011, Kerala became the first state in the country to have at least one banking facility in every village. Unemployment in 2007 was estimated at 9.4%; underemployment, low employability of youths, and a 13.5% female participation rate are chronic issues, as is the practice of Nokku kooli, 'wages for looking on'. By 1999–2000, the rural and urban poverty rates dropped to 10.0% and 9.6% respectively.
The state's budget of 2012–2013 is 481.42 billion. The state government's tax revenues (excluding the shares from Union tax pool) amounted to 217.22 billion in 2010–2011; up from 176.25 billion in 2009–2010. Its non-tax revenues (excluding the shares from Union tax pool) of the Government of Kerala reached 19,308 million in 2010–2011. However, Kerala's high ratio of taxation to GSDP has not alleviated chronic budget deficits and unsustainable levels of government debt, which have impacted social services. A record total of 223 hartals were observed in 2006, resulting in a revenue loss of over 2000 crore.
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