Kerala Keralam
—  State  —
File:A typical houseboat in the Kerala backwaters near Alleppey.jpg
Coat of arms of Kerala Coat of arms
Location of Kerala in India
Map of Kerala
Coordinates (Thiruvananthapuram): 8°30′27″N 76°58′19″E / 8.5074°N 76.972°E / 8.5074; 76.972Coordinates: 8°30′27″N 76°58′19″E / 8.5074°N 76.972°E / 8.5074; 76.972
Country	India
Region	South India
Established	1 November 1956
Capital	Thiruvananthapuram
Largest city Largest Urban agglomeration	Thiruvananthapuram Kochi UA
Districts	14 total
Government
• Body	Government of India, Government of Kerala
• Governor	Hansraj Bhardwaj
• Chief Minister	Oommen Chandy (INC)
• Legislature	Unicameral (141* seats)
• Parliamentary constituency	20
• High Court	Kerala High Court
Area
• Total	38,863 km2 (15,005 sq mi)
Area rank	21st
Population (2011)[1]
• Total	33,387,677
• Rank	12th
• Density	860/km2 (2,200/sq mi)
Time zone	IST (UTC+05:30)
ISO 3166 code	IN-KL
HDI	0.920 (very high)
HDI rank	1st (2011)
Literacy	93.91%(1st)[2]
Official languages	Malayalam, English[3]
Website	kerala.gov.in
^* 140 elected, 1 nominated

Kerala or Keralam /ˈkɛrələ/ is an Indian state located on the Malabar coast of south-west India. It was formed on 1 November 1956 by the States Reorganisation Act by combining various Malayalam speaking regions.

The state has an area of 38,863 km² (15,005 sq mi) and is bordered by Karnataka to the north and northeast, Tamil Nadu to the east and south, and the Arabian Sea^[note] on the west. Thiruvananthapuram is the state capital. Kochi and Kozhikode are other major cities. According to a survey by The Economic Times, five out of ten best cities to live in India are located in Kerala.^[4]

Kerala has the highest Human Development Index^[5][6] in India, higher than that of most developed countries^[7] The state has the highest literacy rate in India with 93.91 percent.^[8] It hopes to be the first e-literate state in India through the state run Akshaya project. The state recently became and is currently the only one to have banking facilities in every village.^[9] A survey conducted in 2005 by Transparency International ranked Kerala as the least corrupt state in the country.^[10] Kerala is also ranked as India's cleanest state.^[11] Kerala has witnessed significant migration of its people, especially to the Persian Gulf countries during the Kerala Gulf boom and is heavily dependent on remittances from its large Malayali expatriate community.^{[12][13][14][15]}

Kerala is a top tourist destination in India;^[16] backwaters, beaches, Ayurvedic tourism and tropical greenery are the major attractions. National Geographic's Traveller magazine names Kerala as one of the "ten paradises of the world"^[17] and "50 must see destinations of a lifetime".^[18] Travel and Leisure names Kerala as "One of the 100 great trips for the 21st century".^[17] The Kerala Government Tourism Department, a government department in charge of promoting tourism has adopted the slogan God's Own Country for its campaigns.

Etymology[link]

The name Kerala is pronounced [ˈkeːraɭa] in the local language, Malayalam.^[19] Two thousand years ago, one of three states in the region was called ‘’Cheralam’’ in Classical Tamil. The leading native Malayali linguist and historian of the language, K. M. George, concurred with previously published beliefs that ‘Chera’ and ‘Kera’ are variants of the same word.^[20][21] On the other hand, what the ancient meaning of chera was is nowadays a matter of dispute. A 3rd-century BCE rock inscription by north Indian emperor Asoka the Great references Kerala as Keralaputra.^[22] The Graeco-Roman trade map Periplus Maris Erythraei references Kerala's Chera territory as Cerobothra.

History[link]

Prehistory[link]

A dolmen erected by Neolithic people in Marayur.

Evidence of Kerala's early human occupation includes Dolmens of the Neolithic era, in the Marayur area. They are locally known as "muniyara", derived from muni (hermit or sage), and ara (dolmen).^[23]

Rock-engravings in the Edakkal Caves (in Wayanad) are thought to date from the early to Late Neolithic eras around 5000 B.C.^[24][25][26] The use of a specific Indus script pictogram in these caves suggests some relationship with the Indus Valley Civilization during the late Bronze Age and early Iron Age.^[27]

Kerala was a major spice exporter as early as 3,000 BCE, according to Sumerian Records.^[28][29]

Ancient period[link]

The word "Kerala" is first mentioned (as "Keralaputra") in a third century BCE rock inscription (Rock Edict 2) left by the Maurya emperor Asoka.^[30] Kerala and Tamil Nadu once shared a common language and culture, within an area known as Tamiḻakam.^[31] In the 1st century BCE, Tamil-speaking Dravidians established the Chera Dynasty that ruled northern Kerala and western Tamil Nadu^[32] from a capital at Vanchi. Southern Kerala was ruled by the Pandyan Kingdom, with a trading port variously identified by ancient Western sources as "Nelcynda" ("Neacyndi")^[33] The Pandyas, Cheras and Cholas alternatively controlled the region in later times.

In the last centuries BCE, the coast became famous among the Greeks and Romans for its spices; especially black pepper. The Cheras had trading links with China, West Asia, Egypt, ancient Greece and the Roman Empire. The value of Rome's annual trade with India as a whole was estimated at no less than 50,000,000 sesterces;^[34] contemporary Sangam literature describes Roman ships coming to Muziris in Kerala, laden with gold to exchange for pepper.^[35] One of the earliest western traders to use the monsoon winds to reach Kerala may have been Eudoxus of Cyzicus, around 118 or 166 BCE, under the patronage of Ptolemy VIII, king of the Hellenistic Ptolemaic dynasty in Egypt. Kerala is identified on the Tabula Peutingeriana, the only known surviving map of the Roman cursus publicus.^[36]

Kerala was identified by the name Malabar in early days. Muziris, Berkarai, Nelcynda etc. were the principle ports of that time.^[37] Merchants from West Asia and Southern Europe established coastal posts and settlements in Kerala.^[38] Jewish connection with Kerala started as early as 573 BC.^[39][40] Arabs also had trade links with Kerala, possibly started before 4th century B.C, as Herodotus (B.C. 484-413) noted that the goods brought by Arabs from Kerala were sold to the Jews at Eden.^[37] They intermarried with local people and with this admixture the large Muslim Mappila community of Kerala developed.^[41] In the 4th century, some Christians also migrated from Persia and joined the early Malabar Christian community here.^[42] Mappila was an honorific title that had been assigned to respected visitors from abroad and Jewish, Christian, and Muslim immigration could be ascribed to the denotation of respective communities as Juda Mappilas, Nasrani Mappilas, and Muslim Mappilas.^[43][44] According to the legends of these communities, the earliest mosque,^[45] synagogue(1568 C.E.),^[46] and Christian churches^[47] in India were built in Kerala. The proportion of Muslims, Christians and Jews were relatively small at this early stage; they co-existed harmoniously with a mutual acceptance between each other and the local Hindu society, aided with the commercial benefit begotten from this relation.^[41]

Early medieval period[link]

Much of history of the region from the 6th to the 8th century is obscure,^[30] a Later Chera Kingdom was established c. 800–1102, primarily with the help of Arab spice merchants. This is also called the Kulasekhara dynasty of Mahodayapuram, as it was founded by Kulasekhara Varman, a Hindu Vaishnavaite alwar saint. Ay kings ruled southern Kerala, but by the 10th century the Ay kingdom declined and became a part of the Later Chera Kingdom.^[48] A Keralite identity, distinct from the Tamils, became linguistically separate during this period.^[49]

The Kulasekhara dynasty came to an end by twelfth century, weakened by the invasions and military subjugations of Rashtrakutas, Later Pandyas, and Later Cholas.^[35] However, King Ravi Varma Kulashekhara of the southern Venad kingdom was able to establish a short-lived supremacy over southern India. But, after his death, in the absence of a strong central power, the state fractured into small warring principalities governed by Nair-Brahmin chieftains.^{[citation needed]} From these, the kingdoms of Venad (Quilon), Kolathiri (Cannanore), Kozhikode (Calicut) Samuthiri and Kochi (Cochin) emerged.^{[citation needed]}

Colonial era[link]

This figure illustrates the path of Vasco da Gama heading for the first time to India (black line)

The western spice-trade, especially in pepper, became increasingly lucrative. Around the 15th century, the Portuguese began to dominate the eastern shipping trade in general, and the spice-trade in particular, culminating in Vasco Da Gama's arrival in Kappad Kozhikode in 1498.^[50][51][52] On 25 March 1505, Francisco de Almeida was appointed Viceroy of Portuguese India, with headquarters at Kochi. The Portuguese had taken advantage of conflicts between Kozhikode and Kochi to gain control of the trade, and established forts at Kannur, Cochin and Kollam  but the Saamoothiri of Kozikode and his admiral Kunjali Marakkar resisted, and in 1571 the Portuguese were defeated at Chaliyam fort.

Dutch commander De Lannoy surrenders to Marthanda Varma at the Battle of Colachel. Depiction at Padmanabhapuram Palace

Tipu Sultan's fort at Palakkad; view from outside the northern wall.

The weakened Portuguese were ousted by the Dutch East India Company, who took advantage of continuing conflicts between Kozhikode and Kochi to gain control of the trade. The Dutch in turn were weakened by constant battles with Marthanda Varma of the Travancore Royal Family, and were defeated at the Battle of Colachel in 1741. An agreement was signed by the Dutch and Travancore in 1753, in which the Dutch promised not to attack Travancore. This agreement was signed at Mavelikkara, so it is known as the Mavelikkara treaty. The Dutch were allied to French forces in the transcontinental Napoleonic Wars; forces of the British East India Company marched against them from Calicut and took their surrender and possessions on 20 October 1795. In 1766, Hyder Ali, the ruler of Mysore invaded northern Kerala; his son and successor, Tipu Sultan, launched campaigns against the expanding British East India Company, resulting in two of the four Anglo-Mysore Wars. Tipu ultimately ceded Malabar District and South Kanara to the Company in the 1790s; the Company forged tributary alliances with Kochi in 1791 and Travancore in 1795. Malabar and South Kanara became part of the Madras Presidency.^[53]

A nineteenth-century map of Madras Province in British India. After independence, Kerala was formed by merging Malabar, Cochin, Travancore and the South Kanara district

There were major revolts in Kerala against British rule in the 20th century, until Independence was achieved. They include the 1921 Malabar Rebellion and the 1946 Punnapra-Vayalar uprising in Travancore.^[54] Other actions by Kerala's political and spiritual leaders protested against social traditions such as untouchability, leading to the 1936 Temple Entry Proclamation that opened Hindu temples in Travancore to all castes; Malabar soon did likewise, and Cochin followed with a similar proclamation in 1948, after Independence. In the 1921 Moplah Rebellion, Mappila Muslims rioted against Hindu zamindars and the British Raj.^[55]

Post Colonial period[link]

After British India was partitioned in 1947 into India and Pakistan, Travancore and Cochin joined the Union of India and on 1 July 1949 were merged to form Travancore-Cochin. On 1 January 1950 (Republic Day), Travancore-Cochin was recognised as a state. The Madras Presidency was organised to form Madras State in 1947.

On 1 November 1956, the state of Kerala was formed by the States Reorganisation Act merging the Malabar district, Travancore-Cochin (excluding four southern taluks, which were merged with Tamil Nadu), and the taluk of Kasargod, South Kanara.^[56] In 1957, elections for the new Kerala Legislative Assembly were held, and a reformist, Communist-led government came to power, under E. M. S. Namboodiripad.^[56] It was the first time a Communist government was democratically elected to power anywhere in the world. It initiated pioneering land reforms, leading to lowest levels of rural poverty in India.^[57]

Geography[link]

Coconut trees can be found all over Kerala

Kerala is wedged between the Lakshadweep sea and the Western Ghats. Lying between north latitudes 8°18' and 12°48' and east longitudes 74°52' and 77°22',^[58][59] Kerala experiences the humid equatorial tropic climate. The state has a coast of length 590 km (370 mi)^[60] and the width of the state varies between 11 and 121 km (22–75 miles). Geographically, Kerala can be divided into three climatically distinct regions: the eastern highlands (rugged and cool mountainous terrain), the central midlands (rolling hills), and the western lowlands (coastal plains). Located at the extreme southern tip of the Indian subcontinent, Kerala lies near the centre of the Indian tectonic plate; hence, most of the state is subject to comparatively little seismic and volcanic activity.^[61] Pre-Cambrian and Pleistocene geological formations compose the bulk of Kerala’s terrain.

Anamudi from Eravikulam National Park

Coconut trees

The eastern region of Kerala consists of high mountains, gorges and deep-cut valleys immediately west of the Western Ghats' rain shadow. Forty-one of Kerala’s west-flowing rivers, and three of its east-flowing ones originate in this region. The Western Ghats form a wall of mountains interrupted only near Palakkad (hence also known Palghat), where the Palakkad Gap breaks through to provide access to the rest of India. The Western Ghats rises on average to 1,500 m (4920 ft) above sea level, while the highest peaks reach above 2,500 m (8200 ft). Anamudi, the highest peak in South India, is at an elevation of 2,695 metres (8,842 ft). Just west of the mountains lie the midland plains comprising central Kerala, dominated by rolling hills and valleys.^[58] Generally ranging between elevations of 250–1,000 m (820–3300 ft), the eastern portions of the Nilgiri and Palni Hills include such formations as Agastya Mala and Anamala.

Kerala’s western coastal belt is relatively flat, and is criss-crossed by a network of interconnected brackish canals, lakes, estuaries, and rivers known as the Kerala Backwaters. Lake Vembanad, Kerala’s largest body of water, dominates the Backwaters; it lies between Alappuzha and Kochi and is more than 200 km² (77 sq mi) in area. Around 8% of India's waterways (measured by length) are found in Kerala.^[62] The most important of Kerala’s forty-four rivers include the Periyar (244 km), the Bharathapuzha (209 km), the Pamba (176 km), the Chaliyar (169 km), the Kadalundipuzha River (130 km), the Valapattanam (129 km) and the Achankovil (128 km). The average length of the rivers of Kerala is 64 km. Many of the rivers are small and entirely fed by monsoon rains.^[58] These conditions result in the nearly year-round water logging of such western regions as Kuttanad, 500 km² of which lies below sea level. As Kerala's rivers are small and lack deltas, they are more prone to environmental factors. The rivers also face problems such as sand mining and pollution.^[63] The state experiences several natural hazards such as landslides, floods, lightning and droughts. The state was also affected by the 2004 Indian Ocean Tsunami.

A catastrophic flood in Kerala in 1341 CE drastically modified its terrain and consequently affected its history. The course of the river Periyar was changed, and the Arabian Sea receded several miles. The Kuttanad region became cultivable, and the Muziris (Kodungalloor) harbour became defunct. A new harbour was developed at Kochi.^[64][65]

Climate[link]

With 120–140 rainy days per year^[66]:80, Kerala has a wet and maritime tropical climate influenced by the seasonal heavy rains of the southwest summer monsoon and northeast winter monsoon.^[67] About 65 percent of the rainfall occurs during the first season (June to August) corresponding to the southwest monsoon and the rest during the second season (September to December) corresponding to northeast monsoon.^[67] Southwest monsoon: The moisture-laden winds on reaching the southernmost point of the Indian Peninsula, due to its topography, become divided into two parts: the Arabian Sea Branch and the Bay of Bengal Branch. The Arabian Sea Branch of the Southwest Monsoon first hits the Western Ghats in Kerala, thus making the area the first state in India to receive rain from the Southwest Monsoon. Northeast monsoon: The distribution of pressure patterns are reversed during this season and the cold winds from North-India pick up moisture from the Bay of Bengal and precipitate it in the east coast of peninsular India. In Kerala, The influence of this monsoon is seen towards southern districts only.^[68] Kerala's rainfall averages 3,107 mm (122 in.) annually. Some of Kerala's drier lowland regions average only 1,250 mm (49 in.); the mountains of eastern Idukki district receive more than 5,000 mm (197 in.) of orographic precipitation, the highest in the state. In eastern Kerala, a drier tropical wet and dry climate prevails.

During summer, Kerala is prone to gale force winds, storm surges, cyclone-related torrential downpours, occasional droughts, and rises in sea level.^{[69]:26, 46, 52} The mean daily temperatures range from 19.8 °C to 36.7 °C.^[58] Mean annual temperatures range from 25.0–27.5 °C in the coastal lowlands to 20.0–22.5 °C in the eastern highlands.^[69]:65

Adjacent states[link]

	Arabian Sea	Karnataka	Karnataka
	Arabian Sea		Tamil Nadu
		Kerala    East
	Arabian Sea	Tamil Nadu	Tamil Nadu

Flora and fauna[link]

State symbols of Kerala^[71]

State animal	Indian elephant
State bird	Great Hornbill
State tree	Coconut tree
State flower	Cassia fistula

Haliastur indus commonly known as Krishnapparunthu in Kerala

A Common Lime Butterfly (Papilio demoleus) in Kadavoor

Much of Kerala's notable biodiversity is concentrated and protected in the Western Ghats. Almost one fourth of India's 10,000 plant species are found in the state. Among the almost 4,000 flowering plant species (1,272 of which are endemic to Kerala and 159 threatened) are 900 species of medicinal plants.^[72][73]:11

Its 9,400 km² of forests include tropical wet evergreen and semi-evergreen forests (lower and middle elevations—3,470 km²), tropical moist and dry deciduous forests (mid-elevations—4,100 km² and 100 km², respectively), and montane subtropical and temperate (shola) forests (highest elevations—100 km²). Altogether, 24% of Kerala is forested.^[73]:12 Two of the world’s Ramsar Convention listed wetlands—Lake Sasthamkotta and the Vembanad-Kol wetlands—are in Kerala, as well as 1455.4 km² of the vast Nilgiri Biosphere Reserve. Subjected to extensive clearing for cultivation in the 20th century,^[74]:6–7 much of the remaining forest cover is now protected from clearfelling. Kerala's fauna are notable for their diversity and high rates of endemism: 102 species of mammals (56 of which are endemic), 453 species of birds, 202 species of freshwater fishes, 169 species of reptiles (139 of them endemic), and 89 species of amphibians (86 endemic).^[72] These are threatened by extensive habitat destruction, including soil erosion, landslides, salinization, and resource extraction.^[75]

Eastern Kerala’s windward mountains shelter tropical moist forests and tropical dry forests, which are common in the Western Ghats. Here, sonokeling (Dalbergia latifolia), anjili, mullumurikku (Erythrina), and Cassia number among the more than 1,000 species of trees in Kerala. Other plants include bamboo, wild black pepper, wild cardamom, the calamus rattan palm (a type of climbing palm), and aromatic vetiver grass (Vetiveria zizanioides).^[73]:12 Living among them are such fauna as Indian Elephant (Elephas maximus indicus), Bengal Tiger, Indian Leopard (Panthera pardus fusca), Nilgiri Tahr, Common Palm Civet, and Grizzled Giant Squirrel.^{[73]:12, 174–175} Reptiles include the King Cobra (Ophiophagus hannah), viper, python, and Mugger Crocodile (Crocodylus palustris) . Kerala's birds are legion—Malabar Trogon, the Great Hornbill, Kerala Laughingthrush, Darter, and Southern Hill Myna are several emblematic species. In lakes, wetlands, and waterways, fish such as kadu (stinging catfish) and Choottachi (Orange chromide—Etroplus maculatus) are found.^{[73]:163–165}

Subdivisions[link]

Kerala's fourteen districts are distributed among Kerala's six historical regions: North Malabar (Far-north Kerala), South Malabar (northern Kerala), Kochi (central Kerala), Northern Travancore, Central Travancore (southern Kerala) and Southern Travancore (Far-south Kerala).

Population density map of Kerala graded from darkest shading (most dense) to lightest (least dense)

Kerala's 14 districts, which serve as the administrative regions for taxation purposes, are further subdivided into 63 taluks; these have fiscal and administrative powers over settlements within their borders, including maintenance of local land records.Taluks of kerala are further divided into 1453 revenue villages.^[78] Consequent to the 74th Amendment to the Constitution of India, the Local self-government Institutions are to function as the third tier of Government and it constitutes 14 District Panchayats, 152 Block Panchayats, 978 Grama Panchayats, 60 Municipalities, 5 Corporations and 1 Township.^[79] Mahé, a part of the Indian union territory of Pondicherry (Puducherry), is a coastal exclave surrounded by Kerala on all of its landward approaches.

List of Major cities in Kerala
Rank	City	District	Population	Kozhikode Kollam	Thiruvananthapuram Kochi
1	Thiruvananthapuram	Thiruvananthapuram	752,490
2	Kochi	Ernakulam	601,574
3	Kozhikode	Kozhikode	432,097
4	Kollam	Kollam	349,033
5	Thrissur	Thrissur	315,596
6	Alappuzha	Alappuzha	174,164
7	Palakkad	Palakkad	131,019
Source: 2011 Census of India [80]
List of cities in Kerala based on the population.(not based on urban agglomeration population)

Government[link]

The Kerala Legislative Assembly Building in Thiruvananthapuram

Following the Constitution of India, the State of Kerala has a parliamentary system of representative democracy for its governance; universal suffrage is granted to state residents. The government structure is organized into the traditional three branches: Legislature, Executive and Judiciary.

1. Legislature: The unicameral legislature, the Kerala Legislative Assembly, comprises elected members and special office bearers (the Speaker and Deputy Speaker) elected by the members from among themselves. Assembly meetings are presided over by the Speaker and in the Speaker's absence, by the Deputy Speaker. Kerala has 140 Assembly constituencies.^[81] The state sends 20 members to the Lok Sabha and 9 to the Rajya Sabha.^[82]
2. Executive: The Governor of Kerala is the constitutional head of state, and is appointed by the President of India.^[83][84] The executive authority is headed by the Chief Minister of Kerala, who is the de facto head of state and is vested with extensive executive powers; the Legislative Assembly's majority party leader is appointed to this position by the Governor. The Council of Ministers, which answers to the Legislative Assembly, has its members appointed by the Governor on advice of the Chief Minister. Auxiliary authorities known as panchayats, for which local body elections are regularly held, govern local affairs.
3. Judiciary: The judiciary consists of the Kerala High Court and a system of lower courts. The High Court, located at Ernakulam, has a Chief Justice along with 26 permanent and two additional (pro tempore) justices. Kerala High Court also hears cases from the Union Territory of Lakshadweep.

Local Governance: Though the local self-government bodies namely, Panchayat, Municipalities and Corporations existed in Kerala since 1959, the major initiative to decentralize the governance in Kerala was started only in 1993, conforming to the constitutional amendments of central government in this direction. With the enactment of Kerala Panchayati Raj Act and Kerala Municipality Act in the year 1994, the state entered a new era of local self-governance. Kerala Panchayati Raj Act envisages a 3-tier system of local-government with Gram panchayat, Block panchayat and District Panchayat forming the hierarchy. The acts ensure clear cut demarcation of power among these institutions. However, Kerala Municipality Act envisages a single tier system for urban areas, with the institution of Municipality designed at par with Gram panchayat of the former system. Substantial administrative, legal and financial powers are delegated these bodies to ensure efficient decentralization. As per the present norms, the state government devolves about 40 per cent of the state plan outlay to the local government. The state has pioneered in many of these steps to empower local self-governance and it acted as a turning point in the nation's history of decentralization.^[85]

Kerala hosts two major political alliances: the United Democratic Front (India) (UDF—led by the Indian National Congress) and the Left Democratic Front (Kerala) (LDF—led by the Communist Party of India (Marxist) (CPI(M)). At present, the UDF is the ruling coalition in government; Oommen Chandy of the INC is the Chief Minister of Kerala and V.S. Achuthanandan of the LDF is the Chief Opposition leader. Strikes, protests and marches are ubiquitous in Kerala due to the comparatively strong presence of labour unions.^[86][87]

Economy[link]

The interior of a building at Technopark.Thiruvananthapuram . Technopark accounts for nearly 70% of the state's IT exports.

Rural women processing coir threads

Cardomom plant

A typical paddy field in Kerala

Since independence, Kerala was managed as a democratic socialist welfare economy. Since the 1990s, liberalisation of the mixed economy allowed onerous Licence Raj restrictions against capitalism and foreign direct investment to be lightened, leading to economic expansion and job creation. In fiscal year 2007–2008, nominal gross state domestic product (GSDP) was 162,414.79 crore (US$32.4 billion). Recent GSDP growth (9.2% in 2004–2005 and 7.4% in 2003–2004) has been robust compared to historical averages (2.3% annually in the 1980s and between 5.1%^[89]:8 and 5.99%^[90] in the 1990s).^[89]:8 The state clocked 8.93% growth in enterprises from 1998 to 2005 compared with 4.80% nationally.^[91] Relatively few such enterprises are major corporations or manufacturers.^[69] Kerala's Human Development Index rating is the highest in India.^[92] This apparently paradoxical "Kerala phenomenon" or "Kerala model of development" of very high human development and not much high economic development results from the strong service sector.^{[69]:48[93]:1}

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.^[12][13][14] As of 2008, the Gulf countries altogether have a Keralite population of more than 2.5 million, who send home annually a sum of USD 6.81 billion,^[94] 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—63.8% of GSDP in 2002–2003) and the agricultural and fishing industries (together 17.2% of GSDP) dominate the economy.^[90][95] Nearly half of Kerala's people are dependent on agriculture alone for income.^[96] Some 600 varieties^[73]:5 of rice (Kerala's most important staple food and cereal crop)^[97]:5 are harvested from 3105.21 km² (a decline from 5883.4 km² in 1990)^[97]:5 of paddy fields; 688,859 tonnes are produced per annum.^[96] Other key crops include coconut (899,198 ha), tea, coffee (23% of Indian production,^[98]:13 or 57,000 tonnes^[98]:6–7), rubber, cashews, and spices—including pepper, cardamom, vanilla, cinnamon, and nutmeg. Around 1.050 million fishermen haul an annual catch of 668,000 tonnes (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.^[99]

Traditional industries manufacturing such items as 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 (0.3% of GSDP)^[95] involves extraction of ilmenite, kaolin, bauxite, silica, quartz, rutile, zircon, and sillimanite.^[96] Home gardens and animal husbandry also provide work for hundreds of thousands of 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.^[100] On 1 October 2011, Kerala became the first state in the country to have banking facility in every village.^[101] Unemployment in 2007 was estimated at 9.4%;^[102] underemployment, low employability of youths, and a 13.5% female participation rate are chronic issues,^{[103]:5, 13 [104]} as is the practice of Nokku kooli, 'wages for looking on'.^[105] By 1999–2000, the rural and urban poverty rates dropped to 10.0% and 9.6% respectively.^[106]

The state's 2005–2006 budget was 219 billion.^[107] The state government's tax revenues (excluding the shares from Union tax pool) amounted to 111,248 million in 2005, up from 63,599 million in 2000. Its non-tax revenues (excluding the shares from Union tax pool) of the Government of Kerala as assessed by the Indian Finance Commissions reached 10,809 million in 2005, nearly double the 6,847 million revenues of 2000.^[108] However, Kerala's high ratio of taxation to gross state domestic product (GSDP) has not alleviated chronic budget deficits and unsustainable levels of government debt, impacting social services.^[109]

The state treasury has suffered loss of thousands of millions of rupees thanks to the state staging over 100 hartals annually in recent times. A record total of 223 hartals were observed in 2006, resulting in a revenue loss of over 2000 crore.^[110]

Agriculture[link]

Kerala produces 97% of national output of pepper and accounts for 85% out of the area under natural rubber in the country. Coconut, tea, coffee, cashew, and spices — including cardamom, vanilla, cinnamon, and nutmeg — comprise a critical agricultural sector. A key agricultural staple is rice, with some six hundred varieties grown in Kerala's extensive paddy fields. Nevertheless, home gardens comprise a significant portion of the agricultural sector. Related animal husbandry is also important, and is touted by proponents as a means of alleviating rural poverty and unemployment among women, the marginalized, and the landless. Feeding, milking, breeding, management, health care, and concomitant micro-enterprises all provide work for around 32 lakh (3.2 million) of Kerala's 55 lakh (5.5 million) households. The state government seeks to promote such activity via educational campaigns and the development of new cattle breeds such as the "Sunandini".

A scenic landscape, with water filled paddy fields.

Fisheries[link]

Fisheries contribute about 3% of the total economy of the state. The natural landforms of the state endow Kerala with a huge output of marine and freshwater fish haul each year. About 10.85 lakh people earn their livelihood from fishing and allied activities such as drying, processing, packaging, exporting and transporting fisheries.The state alone yields 6.75 lakh tonnes of fish every year

Transport[link]

KSRTC is the major agency providing long-haul public bus service in Kerala.

The main Portico of the Trivandrum Central Railway Station

Cochin International Airport (CIAL)

State Water Transport Department is the main agency providing inland water transport facilities.

Roads[link]

Kerala has 145,704 kilometres (90,536 mi) of roads (4.2% of India's total). This translates to about 4.62 kilometres (2.87 mi) of road per thousand population, compared to an all India average of 2.59 kilometres (1.61 mi). Virtually all of Kerala's villages are connected by road.

Roads in Kerala includes 1,524 km of National highway (2.6% of nation's total), 4341.6 km of state highway and 18900 km of district roads.^[111] Most of Kerala's west coast is accessible through two national highways, NH 47, and NH 17 and eastern side is accessible through various State Highways. There is also a Hill Highway (Kerala) proposed, to make easy access to eastern hills.

NH 17 connects Edapally (Kochi) to Panvel (Maharashtra) and is the longest stretch of national highway through the state. The other major national highway passing through the state is National Highway 47 which connects Salem to Kanyakumari and passes through the major towns and cities like Palakkad, Thrissur, Kochi, Alappuzha, Kollam and Thiruvananthapuram. The Salem-Kochi stretch of this highway is a part of North-South Corridor of the Indian highway system. The length of the National Highway 47 (India) through Kerala is 416.8 km.^[112] NH 49 (Kochi – Dhanushkodi), NH 208 (Kollam – Thirumangalam), NH 212 (Kozhikode – Mysore), NH 213 (Kozhikode – Palakkad), NH 220 (Kollam – theni) are the other national highways serving the state of Kerala.

The Department of Public Works is responsible for maintaining and expanding the state highways system and major district roads.The Kerala State Transport Project (KSTP), which includes the GIS-based Road Information and Management Project (RIMS), is responsible for maintaining and expanding the state highways in Kerala; it also oversees few major district roads.^[113][114]

Traffic in Kerala has been growing at a rate of 10–11% every year, resulting in high traffic and pressure on the roads. Kerala's road density is nearly four times the national average, reflecting the state's high population density. Kerala's annual total of road accidents is among the nation's highest. The accidents are mainly result of the narrow roads and irresponsible driving. ^[115]

Railways[link]

Today the Indian Railways' Southern Railway line runs through the state, connecting most major towns and cities except those in the highland districts of Idukki and Wayanad.

Dates of beginning of railway transport in various sections of the state are given below:-

Beypore-Tirur (12 March 1861); Shoranur-Ernakulam (1902);m Shenkottai-Punalur (26 November 1904); Punalur-Thiruvananthapuram (4 November 1931); Ernakulam-Kottayam (1956); Kottayam-Kollam (1958); Thiruvananthapuram-Kanyakumari (1979); Thrissur-Guruvayur (1994).^[116]

The railway network in the state is controlled by three divisions of Southern Railway, namely Trivandrum Railway Division, Palakkad Railway Division and Madurai Railway Division. Eranakulam Junction is the busiest railway station in the state and second busiest in the Southern Railway Zone after Chennai Central. Kerala's major railway stations are Kannur, Kozhikode, Shornur Junction, Palakkad Junction, Thrissur, Angamaly For Kalady, Ernakulam Town, Ernakulam Junction, Alappuzha, Kottayam, Tiruvalla, Chengannur, Kayamkulam Junction, Kollam Junction and Thiruvananthapuram Central.

Airports[link]

Kerala has three major international airports, at Thiruvananthapuram, Kochi and Kozhikode. A fourth international airport is proposed at Kannur.^[117] Thiruvananthapuram's Trivandrum International Airport is the first International airport in an Indian non-metro city. The Cochin International Airport is the busiest and largest in the state, and was the first Indian airport to be incorporated as a public limited company; funded by nearly 10,000 Non Resident Indians from 30 countries.^[118]