GOVERNMENT OF KERALA ECONOMIC REVIEW 2019 State Planning Board, Thiruvananthapuram, Kerala, India January 2020 Volume One Economic Review 2019 Kerala State Planning Board, Thiruvananthapuram, Kerala, India Design & Layout : C-DIT, www.cdit.org Illustrations : Illyas S FOREWORD The year 2019 has been a year of subdued growth and investment. The global economy is in slowdown. Global growth is projected at 3.9 per cent, the lowest level since 2008-09. As a whole, rising trade barriers, uncertainty surrounding trade and geopolitics, and low productivity growth have resulted in this sluggish growth. Growth in 2019 has been lower than in 2018 in major economies, including India, Brazil, Mexico, Russia, and South Africa. The recent national estimates of growth also indicate an economic slowdown. National growth has recorded one of its lowest levels. The estimated growth in real GDP in 2019-20 is 5 per cent, much lesser than the growth rate of 6.8 per cent recorded in 2018-19. The quick estimate of growth in 2018-19 shows that the Kerala economy grew at 7.5 per cent (at constant prices). The growth was 7.3 per cent in 2017-18. The growth in 2018-19 was mainly due to the growth in secondary sector, which recorded a growth of 8.8 per cent (at constant prices). The tertiary sector grew at 8.4 per cent in the same year. A positive growth rate has been recorded despite the problems faced by the State over the last two years. These include extreme rainfall events and consequent floods and landslides over two consecutive years, and severe shortage of resources after the implementation of Goods and Services Tax. Kerala took the crisis following the floods and landslides as an opportunity to rebuild in such a way as to ensure climate resilience and better standards of living for the citizens of the State. The Economic Review 2019 documents the efforts undertaken by the Government to rebuild the State. A new section, Rebuild Kerala Initiative, has been introduced this year. The Rebuild Kerala Initiative is a commitment of the Government to develop climate resilient infrastructure, improved conditions of living and new major development projects that ensure that people and assets are able to withstand the onslaught of future disasters. In fact, the major focus of the Plan in 2019-20 was to Economic Review 2019 iii rebuild the livelihoods lost in the floods and landslides. As part of this effort, the State Planning Board formulated a Livelihood Development Package for different sectors. The Government is committed to providing the people with health care and education of the best quality. The Aardram Mission has upgraded the primary health centres to family health centres and helped in creation of new medical infrastructure in Government hospitals at different levels. As a result of the efforts by the Government in school education, there has been a shift of school pupils from private to Government and aided institutions. The efforts of the Government in health and education have been substantial; for this reason, this years’ theme chapter is on achievements in health and education. The policy of the Government of Kerala is to invest in people, ensure social justice to all, and encourage productive forces in the economy. Among the States of India, Kerala tops again in the achievement of Sustainable Development Goals. Kerala tops the index in achievement of goals related to health and industry, innovation, and infrastructure. The Government has streamlined the decentralised planning system by speeding up the Plan formulation process, thereby augmenting the time available for implementation of Plans. District Resource Centres have now began to work to improve the quality of Plans. The Economic Review 2019 includes information on policies and programmes of the Government departments. It discusses the performance of various departments and the issues to be addressed in coming years. The sections in this year’s Review have been slightly re-arranged to make it more thematic. The major achievements in sectors have been highlighted in the relevant sections. As in previous years, the Review is presented in two volumes. Volume I covers the policies, programmes, and achievements of Government departments and Volume II provides the corresponding datasets. Economic Review 2019 is published in English and Malayalam. A digital version will be uploaded at the State Planning Board website www.spb.kerala.gov.in. Thiruvananthapuram January 22, 2020 iv Kerala State Planning Board CONTENTS KERALA AT A GLANCE KERALA’S ECONOMIC AND SOCIAL INDICATORS – A QUICK LOOK DISTRICTS – AN OVERVIEW LIST OF TABLES LIST OF BOXES LIST OF FIGURES CHAPTER 1 KERALA ECONOMY 01 1.1 Recent Trends in Macro-Economic Aggregates 03 1.2 12 1.3 Indicators of Poverty 16 Demographic Profile 1.4 Role of Financial Institutions in Development Initiatives 20 1.5 State Finances 27 1.6 Plan Outlay 2018-19 38 CHAPTER 2 EDUCATION AND HEALTH: EXTENDING PUBLIC ACTION 41 CHAPTER 3 AGRICULTURE AND ALLIED SECTORS 59 3.1 Agriculture 61 3.2 Co-operation 78 3.3 Livestock 82 3.4 Fisheries 94 3.5 Water Resources 102 3.6 Forestry and Wild Life 109 3.7 Environment 114 3.8 Food Security and Public Distribution System 122 CHAPTER 4 MANUFACTURING SECTOR 129 4.1 Kerala’s Industrialisation 131 4.2 Manufacturing Sector 136 4.3 Public Sector Undertakings 140 Economic Review 2019 v 4.4 Micro Small and Medium Enterprises 152 4.5 Food Processing 162 4.6 Traditional Industries 164 CHAPTER 5 SERVICE SECTOR 189 5.1 Information Technology 191 5.2 204 5.3 Tourism 220 Scientific Services and Research 5.4 External Trade 229 5.5 Service Sector 239 5.6 Outreach to Public 246 CHAPTER 6 HUMAN DEVELOPMENT 249 6.1 Education 251 6.2 Medical and Public Health 273 6.3 292 CHAPTER 7 LABOUR AND EMPLOYMENT 301 Impact of Changing Demographic Profile 7.1 Labour and Labour Welfare 303 7.2 Employment 315 7.3 Skill Development 326 CHAPTER 8 INITIATIVES FOR SOCIAL INCLUSION 333 8.1 Gender and Development 335 8.2 Welfare of Scheduled Castes, Scheduled Tribes, Other Backward Classes, 351 Minorities, and Forward Communities 8.3 Social Security Measures 368 CHAPTER 9 ART, CULTURE AND SPORTS 385 9.1 Art and Culture 387 9.2 Sports and Youth Affairs 393 CHAPTER 10 KERALA DIASPORA 399 CHAPTER 11 INFRASTRUCTURE 375 11.1 Transport 411 11.2 Energy 452 11.3 Communication 477 11.4 Drinking Water 481 11.5 Housing 487 11.6 Rebuild Kerala Initiative 494 11.7 Kerala Infrastructure Investment Fund Board 505 CHAPTER 12 LOCAL GOVERNMENTS AND DECENTRALISED PLANNING 509 GLOSSARY 537 ABBREVIATIONS 541 vi Kerala State Planning Board KERALA AT A GLANCE Kerala’s Gross State Domestic Product (GSDP) at constant (2011-12) prices registered a growth rate of 7.5 per cent in 2018-19 (Q) compared to 7.3 per cent in 2017-18(P). At current prices, the GSDP grew at 11.4 per cent in 2018-19(Q) as against 10.5 per cent in 2017-18 (P). The growth rate of Gross State Value Added (GSVA) at basic prices in constant (2011-12) prices was 7.5 per cent in 2018-19(Q), higher than the growth of 6.8 per cent in 2017-18(P). At current prices, the growth of GSVA was 10.5 per cent in 2018-19 (Q) as against 11.1 per cent in 2017-18 (P). As per the quick estimates, the per capita GSDP at constant (2011-12) prices in recording a growth rate of 6.9 per cent in 2018-19. At current prices, the per capita 2018-19 was ₹1,61,374 as against the provisional estimate of ₹1,50,922 in 2017-18, GSDP in 2017-18 was ₹2,25,484 registering a growth rate of10.9 per cent over the previous year’s estimate of ₹2,03,396. incomeAccording per to person quick estimatesin Kerala forwas 2018-19, approximately per capita 1.6 timesincome the ofKerala Indian is average₹1,48,078. in 2018-19.The corresponding national average (for 2018-19) is ₹93,655. Inother words, average Kerala’s GSVA grew at relatively fast rates during the period from 2016-17 to 2018- 19 despite the many setbacks faced by the State and despite the growing signs of recession in the national economy. The sectors that contributed to this fast growth are fishing and aquaculture, manufacturing, trade, hotels and restaurants, social services mainly education and health, public services and professional services. In 2018-19, the contribution from primary, secondary and tertiary sectors to the GSVA at constant prices (2011-12) was 9.3 per cent, 28.1 per cent and 62.6 per cent Economic Review 2019 vii respectively. At current prices, the primary, secondary and tertiary sectors contributed 11.11 per cent, 25.2 per cent, and 63.7 per cent respectively to the GSVA. Among the sectors, the highest growth was in the secondary sector with 8.8 per cent growth at constant (2011-12) prices followed by tertiary sector (8.4 per cent). The growth in secondary sector was mainly due to a spurt in the manufacturing sector. However, the growth in primary sector was negative (-1.43 per cent), mainly due to a major slowdown in mining and quarrying sector. At current prices, the tertiary sector grew at 12.4 per cent, secondary sector at 11.4 per cent and the primary sector at -0.6 per cent. The agriculture and allied sector growth declined to (-) 0.5 per cent in 2018-19 from a growth rate of 1.7 per cent in 2017-18.