Kerala's development paradox

Kerala has long been recognised as a unique model of development among Indian states, particularly for its remarkable social achievements despite modest economic growth.

- MAYA K AND NEERAJ KUMAR

The state's success in education, healthcare, and human development has attracted global attention from scholars examining whether high-quality social outcomes can be achieved without robust industrial performance. Kerala ranks among the top Indian states in human development indicators with high literacy, low infant mortality, long life expectancy, and minimal poverty and recently topped the SDG India Index 2023-24.

However, despite these achievements, Kerala has been struggling to sustain its industrial growth and manage increasing fiscal distress. While it ranks 11th among Indian states in projected Gross State Domestic Product (GSDP), with an estimated Rs 13.11 lakh crore for 2024-25 and a per capita GSDP of Rs 2,95,787 (2022-23) compared to the national average of Rs 1,96,983, its economic growth has slowed. The RBI's Handbook on Statistics on Indian States 2023-24 placed Kerala 30th in the last five years' economic growth among 33 states and union territories.