page_title: Economy of South India
section_title: Kerala
hierarchical_section_title: Economy of South India / Kerala
caption_attribution_description: English: the clear Kovalam beach in Thiruvananthapuram in Kerala. It is at the southern tip of the Malabar Coast, in South India.
context_page_description: 'Economy of South India after independence in 1947 conformed to a socialist framework, with strict governmental control over private sector participation, foreign trade and foreign direct investment. Through 1960–1990, South Indian economies experienced mixed economic growth. In the 1960s, Kerala achieved above-average economic growth, while Andhra Pradesh's economy declined during this period. Similarly, Kerala experienced an economic decline in the 1970s while the economies of Tamil Nadu, Andhra Pradesh, and Karnataka consistently exceeded national average growth rates after 1970. Andhra Pradesh, Tamil Nadu and Karnataka were noted by some to be more reform-oriented in terms of economic policy when compared to other Indian states. Over the last decade South India has grown at 8% annually. Future economic growth will be shackled by a relatively low proportion of the active age population to the number of dependents.
  Over 48% of South India's population is engaged in agriculture, which is largely dependent on seasonal monsoons. Some of the main crops cultivated in South India include paddy, sorghum, pearl millet, pulses, sugarcane, cotton, chilli, and ragi.
context_section_description: Kerala's economy is predominantly agrarian. In terms of industrialisation, Kerala lags behind many of the Indian states, but in terms of Human Development Index and life standard of the people, Kerala is ahead of all other states in India. In fact, in certain development indices it is on a par with some of the developed countries. This peculiar paradox is often termed as the "Kerala Phenomenon" or Kerala model of development by experts.
  Kerala follows a socialist welfare economy. Kerala's emphasis on social welfare also resulted in slow economic progress. There are few major industries in Kerala, but the per capita GDP is higher than the national average. Remittances from Keralites working abroad, mainly in the Middle East, makes up a large share in Kerala's Gross Domestic Product.
  However, today, the state is emerging as a future IT centre of India, owing to its high internet connectivity (undersea cable landing points at Kochi), along with skilled labour. The government has established three IT Parks in the state are Technopark in Trivandrum and Infopark in Kochi and Cyberpark Calicut. The Technopark at Trivandrum is the third largest IT park in Asia, and the largest in India. In addition to Inforpark in Kochi, an IT park named as Smartcity by Dubai Internet City is under construction. Kochi is a safe natural harbour, and hence one of the most important ports of India. A new International Container Transshipment Terminal is commissioned at Vallarpadam, which is expected to be a major transshipment port in India. In addition, the construction of the proposed mega Deep Water Container Transshipment Port at Vizhinjam near Trivandrum is expected to boost up the economy of the state.
  Agriculture is still the most predominant economic activity in the state. Coconut, tea and coffee are grown extensively, along with rubber, cashew and spices. Spices commonly cultivated in Kerala include pepper, cardamom, vanilla, cinnamon and nutmeg. Much of Kerala's agriculture is in the form of home gardens.
  Unemployment is typically high in Kerala, though a recent study by centre for development studies in trivandrum have shown unemployment rate down to 9%.Traditional low-wage cottage industries such as the processing of coconut fibre and cashew or weaving employ most workers. More than a fourth of Kerala's workers provide service.
  One of the major ship building yards of India is in Kerala at Kochi. The Southern Naval Command of India has its headquarters in Kochi, and the Southern Air Command headquarters is in Thiruvananthapuram(Trivandrum). There are four international airports in Kerala. They are Trivandrum, Cochin,  Kozhikode and Kannur. Cochin International Airport is the first International Airport in India that has been built with private participation, without the Central Government's stake.
  Kerala is also one of the tourist hot-spots of India. It was proclaimed as one of the ten paradises on earth by the National Geographic traveller. The state has also won a large number of awards for its ecotourism initiatives.
caption: Dusk in Kovalam beach, Trivandrum
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