Economy

The Economy Of the State:

Installed capacity: 1476.5 MW; Industrial Employment: 2.59 lakh; No. Of industrial units: 11,407; People per phone: 62; Road length: 139,042 km; Domestic Airports: 3; Inflation 12.2%.

The state has an agrarian economy due to climatic and historic reasons. Keralites cultivate cash crops and import food crops (cereals, millets, pulses and tapioca) from neighbouring states. This has left the state a dependant on other states for bread. The cultivable land in the state spreads on 30.21 Lakh hectares. This land produces 92 per cent of India's rubber, 70 per cent of coconut, and 60 per cent of tapioca. Kerala with its high population presents complex problems in the sphere of food, employment and housing. The state is 50% shot of food. Owing to the historical and climatic reasons state has developed commercial agricultural more than food crops. Consequently, the state is short of food grains, especially rice which is the staple food of the people. Out of a gross cropped area of 30.21 lakh hectares in 1992-93 the share of food corps (cereals, millets, pulses and tapioca) was only 23%. Kerala has a unique cropping pattern.  Lemon grass oil is being brewed only in this state. Kerala is the single largest producer of a number of other crops such as banana and ginger, besides tea and coffee in abundance. Coir and cashew based industries have a long tradition in this state. Handloom and bamboo-based industries are well developed.  

Kerala accounts for about 1/3 of India's marine exports. In 1991 the state announced a new industrial policy of liberalization for private entrepreneurs.  In Apr. 97, Kerala became the first state to have public telephones in all its villages, accessible over STD/ISD from any part of the world. In April '98 Kottayam became the first district in India to complete computerization of the taluk offices connecting them with the dist. headquarters. All block Panchayats have computer links now. Government has set for itself a target of 8 Lakh new jobs during 9th Plan. Kerala has launched a Non-resident Keralites Insurance and Security Scheme. Brahmapuram diesel power project was commissioned in June '97. The 180 MW Lower Periyar Hydro Electric Project was commissioned in Oct. Cochin International Airport Ltd. (Nedumbassery), India's first private airport was opened in June '99.

Rubber: Production stood at 408,300 tons in1970-71. (Figures for India for 35,160 and 92,171, respectively.) Area under Rubber increased from 198,424 to 437,100 hectors during the same period. (Figures for India: 217,198 and 508,420) Coffee: In 30 years coffee production in the state increased more than 7 times. In 93-94 Kerala produced 38000 tones. Production marked an increase because of rice productivity. Tea: 1993-94 total production of tea in this state was 60,690 tones. Around 34,850 hectors are under tea foundation. Cardamom: The area under cardamom decline to 39,930 hectors in 1992-93 against 43,670 hectors in 1991-92, and production fell from 3450 tonnes in 91-92 to 2424 tonnes in 1992-93. In 93-94 area was 43,459 hectares and production 4430 tonnes.  Coir and Cashew are two of the largest traditional industries in the state. Cashew production was 90,000 tonnes in 1992-93. Handloom also is fairly developed. Bamboo based industries are also thriving. In 1989-90 cashew work of Rs. 360 crores and coir products worth Rs.33.52 crore were exported. Out of a total marine products export of 139,419 tonnes from India during 1991. Kerala share was 50,997 tonnes. That is 36.58%. Fish production in 1992 was 603,000 tonnes.  Total no: of small scale units was 95,851 in March 93. No: of working factories was 13,946 by end of 1992. Joint stock companies rose to 5,228 by March 93. In 1991 the state announced a new industrial policy of liberalisation for private entrepreneurs, first private airport, is planning to launch a airport development organization is approaching capital market for funds.