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State Profile Kerala 2015-1 State Profile of Kerala 2015-16 E Profile of Rala STATE PROFILE OF KERALA 2015-16 State Profile of Kerala, 2015-16 Prepared by Statistics Division, MSME-DI, Thrissur-680 003 Published by: MSME-Development Institute, Ministry of MSME, Government of India, Kanjani Road, Ayyanthole P.O, Thrissur-680 003 (Kerala) Telephone: 0487-2360536, 2360686 Fax: 0487-2360216 E-mail:[email protected] Website: www.msmedithrissur.gov.in MSME-Development Institute, Thrissur Page 2 State Profile of Kerala, 2015-16 FORWARD MSME-Development Institute, Thrissur Page 3 State Profile of Kerala, 2015-16 KERALA DISTRICT MAP MSME-Development Institute, Thrissur Page 4 State Profile of Kerala, 2015-16 CONTENTS FOREWORD KERALA DISTRICT MAP CHAPTER TOPICS PAGE No. 1 General Characteristics of the State 6-18 2 Resources 19-49 3 Socio –Economic Status 50-55 4 Industries 56-120 5 Infrastructure 121-175 6 Institutional Support and Incentives 176-204 7 Industrial Potentiality in the State 205-210 8 Whom To Contact and for What 211-225 MSME-Development Institute, Thrissur Page 5 State Profile of Kerala, 2015-16 CHAPTER-1 GENERAL CHARACTERISTICS OF THE STATE 1.1 INTRODUCTION Kerala was known long for its high human development at low incomes. But recent years have seen a great change in the status of Kerala..Kerala has been an enigma to the Economists and Social Scientists. While the Economy has moved from the almost stagnant situation in the 1960s and 70's to the slow growth in Nineties, the State has been in the fore front of social development indicators in India. Though, post liberalisation phase has seen significant growth in secondary and territory sectors like IT, Tourism, entertainment, internet and mobile services, airlines, banking, insurance etc. the growth has not been commensurate with social development indicators. A fairly high density of population, close settlements in the low lands and coastal plains and the increasing movement towards service sector employment has seen Kerala urbanize rapidly. Urbanization has brought to the fore many daunting challenges before the State. Rapid urbanization calls for greater investment in transportation, housing , sewage drinking water and waste management Kerala is a small state, tucked away in the south west corner of India. It represents only 1.18 percent of the total area of India but has 2.76% of the total population of the country which was 3.10 percent during the 2001 census. It is separated from the rest of the peninsula by natural geographic boundaries. Kerala may be divided into three geographical regions (1) high land (2) mid land and (3) low land. The high lands slope down from the Western Ghats, which rise to an average height of 900m, with a number of peaks over 1,800 m in height. This is the area of major plantations like tea, coffee, rubber, cardamom and other species. The mid land lies between the mountains and the low lands. It is made up of undulating hills and valleys. This is an area of intensive cultivation - cashew, coconut, areca nut, cassava, banana, rice, ginger, pepper, sugarcane and vegetables of different varieties are grown in this area. MSME-Development Institute, Thrissur Page 6 State Profile of Kerala, 2015-16 The 'Western Ghats' with their rich primeval forests having a high degree of rainfall, form the eastern boundary and extend from the north to Kanyakumari in the south. The entire western border is caressed by the Arabian Sea. Between these natural boundaries lies the narrow strip of land extending from Kasargode in the north to Parasala in the south. o o o Located at north latitude between 8 18` and 12 48` and east longitude between 74 o 52` and 77 22`, with an area of 388863 sq. km lying between the Arabian Sea on the West and Western Ghats on the East, Kerala has the following to its credit: • Highest literacy rate in India. • Highly skilled human resources with low operating cost. • Human Development Index at par with the West. • Ranked best in India in terms of Physical Quality of life Index. • An efficient public transport system. • Information Technology becoming a key area of economic excellence. • Best Public Health care system in India. • Tourism has grown to be a front line industry with Government support and private management. However the fact that Higher Economic Growth is necessary not only to generate higher tax revenue but also to sustain the advances made in social sector and in order to allocate more resources by the State to the welfare activities for the poor and needy has yet to be widely acknowledged in the State. In order to generate higher economic growth, investments are required for creating high quality infrastructure, skilled human capital, technology up-gradation and enterprise MSME-Development Institute, Thrissur Page 7 State Profile of Kerala, 2015-16 promotion. The Micro and Small Enterprises plays an important role in the balanced and holistic industrial development of the State. It generates employment and value to products and services through utilizing available resources in the State. Kerala is one of India’s most globalized states, with a high dependence on exports, remittances and tourism. The recession in the Euro zone, the weak pace of expansion of the United States and the slowing growth in all emerging countries has dampened Kerala’s exports and reduced tourist flows. Fluctuating global commodity prices cause uncertainty for Kerala’s exporters. Food and fuel prices have remained high resulting in cost push inflationary conditions. Saudi Arabia’s Nitaquat policy has resulted in uncertainty, regarding further opportunities for nonresident Keralities working abroad, and concern over further widening of unemployment. Kerala, being a sub-sovereign entity, is affected by developments in the rest of the country. India has been beset with low growth; fall in infrastructure investment, weak business confidence, high interest rates, wide current account deficit, high domestic inflation, rapidly depreciating currency and inability to manage the fiscal deficit within targeted limits. These factors have a deep impact on Kerala, as the state is dependent on other states for much of its consumption requirements, including essentials like food grains, electricity and other basic goods. Inflationary conditions and supply side bottlenecks have a greater impact on Kerala due to the fact that Kerala is situated far away from major production centres and logistics are weak. Various efforts made by the Government in 2015-16 to improve the welfare of the people include continued emphasis on decentralized governance, special packages for vulnerable communities, minorities and people in backward regions, substantial allocation for education and health, and a focused effort at skill up gradation. All sectors, agriculture, industry, infrastructure and services have been given due priority through a variety of initiatives. Implementation difficulties, primarily in large infrastructure projects, have been mainly on account of inability to acquire land, issues relating to resettlement and rehabilitation of project affected people, and capacity constraints, including skilled manpower shortage, in various Implementing Agencies. Efforts have been made to capture MSME-Development Institute, Thrissur Page 8 State Profile of Kerala, 2015-16 difficulties in implementation through real-time monitoring and taking appropriate corrective action. As per the quick estimates, the. per capita Gross State Domestic Product at constant. (2011-12) prices in 2014-15 was Rs 127166 as against provisional estimate of Rs 119799 in 2013-14, recording a growth rate. of 6.15 per cent in 2014. -15. At current prices, the per capita GSDP in 2014-15 was Rs 152912 compared to Rs 136827 in 2013-14. The best indicator of per capita state income is NSDP divided by the population. At constant (2011- 12). prices, the quick estimates of per capita Net. State Domestic Product in 2014-15 was Rs 115225 as against provisional estimate of Rs 108147 in 2013-14, recording a growth rate of 6.54 per cent in 2014-15. During 2014-15, the contribution from primary, secondary and tertiary sectors to the GSVA at constant prices (2011-12) was 12.15 per cent, 25.11 per cent and 62.74 per cent respectively. At current prices, the primary, secondary and tertiary sectors contributed 12.91 per cent, 24.81 per cent and 62.28 per cent respectively to the GSVA during 2014-15. The State Government enacted the Kerala Fiscal Responsibility Act in 2003 to ensure prudence in fiscal management and fiscal stability by progressive elimination of revenue deficit. In the years that followed enactment of the Kerala Fiscal Responsibility Act in 2003 improvement has been witnessed in key fiscal indicators of the State. The revenue deficit which was 4.37 per cent of GSDP in 2002-03 came down to 1.36 per cent in 2010-11. State’s fiscal consolidation largely relied on revenue receipts. Deterioration in the buoyancy in revenue receipts due to multiple reasons in recent years has adversely affected State’s fiscal performance in achieving the fiscal consolidation targets. In pursuant to the State’s commitment towards fiscal consolidation, the Budget Estimates 2014-15 envisaged a Revenue Deficit target of 1.53 per cent of GSDP. However severe domestic challenges and external compulsions had an adverse impact on the buoyancy of State revenues and government could not adhere to fiscal consolidation MSME-Development Institute, Thrissur Page 9 State Profile of Kerala, 2015-16 targets set in the budget. In 2014-15, revenue deficit was 2.78 per cent of GSDP against 2.63 per cent of 2013-14. Fiscal deficit during 2014-15 at 3.75 per cent has shown a slight improvement compared to 3.94 per cent during 2013-14. Earnest efforts are being taken for enhanced revenue generation to have better fiscal consolidation including rationalization of expenditure to achieve the fiscal targets.
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