Agriculture is the strong base on which the economy of Kerala is built. Read through the article to know about the economic condition of kerala.  

Economy Of Kerala

Kerala has witnessed amazing growth and development in its economy. Though the state economy is primarily based on agriculture, its rich historical importance and natural attributes have resulted in the growth of plenty of industries in Kerala. Located in the South-western tip of India, the state is credited for being the Indian state with the highest literacy rate. The last few decades also witnessed tourism being grown as one of the major industries backing front line government and industry line management. Efficient public transport system and information technology becomes one of the key aspects of its economic excellence. Possessing the best Human development Index and standard of living statistics, the state even has plenty of developed countries as its rivals. Highly dependent on remittances, almost 30 Lakh Keralites are working abroad, prominently in Gulf countries which was termed as ‘kerala gulf boom’. These foreign remittances which come to a sum of USD6.81 billion form a strong base for the economy of kerala.


Agriculture forms one of the bases for Kerala’s economy. The state is the producer of pepper and rubber. Other commodities which include a critical aspect of the agricultural sector are coconut, tea, coffee, cashew and spices including cardamom, nutmeg, vanilla and cinnamon. Another agricultural commodity is rice which grows immensely in the paddy fields of the state. Home gardens, animal husbandry reduce to a large extend the unemployment and rural poverty among the women in kerala. Even the state government encourages micro enterprises such as Feeding, milking, breeding, management and health care which promotes work for many kerala households.

Information Technology

With a boom in the IT sector, kerala has grown into one of the popular destinations for e-commerce and e-business solutions. The number of people employed in IT sector has tremendously increased which is generally due to the active encouragement of courses such as MCA, BSc. Computer science and software engineering. With the growth of multinational companies along with the creation of Techno Park, IT sector has become a major generator of revenue in the state.


Kerala has witnessed the flourishing of a number of industries such as those that produce electronic items and textile industries. Those spices that are exported from kerala includes tea, coffee, cardamom, pepper, ginger and coconut have enhanced the growth of industries. You can see almost 1.8 Lakh small scale industries and about 511 medium scale and large scale industries in kerala. Most of the recent growth in the industry sector is mainly due to the growth of tourism and business process outsourcing.

Mineral Wealth

Kerala has a rich mineral wealth resource. It provides the state with its greatest revenue and foreign currency by exporting it to other states. The soil of kerala is loaded with minerals like Kaolin, Bauxite, Monozite, Zircon, Quartz and Silimanite. The sands in the beaches of Quilon have a great presence of minerals such as Monozite, Ilmenite, Rutile, Zircon and Silimanite.


A hot tourist destination for Indians and foreigners alike, tourism is one of the main industries in kerala with the state being the first Indian state to take it as an industry. With plenty of tourist attractions including Kovalam, Cherai, Varkala and the hill stations including Munnar, Nelliampathi, Ponmudi and Iravikulam National Park. Kerala also boasts of plenty of interlocking rivers and canals which centre on Alappey, Punnamada and Kumarakom. The explicit beauty of kerala architecture is seen in Padmanabhapuram Palace and the various temples all over the state. Alappey, the ‘Venice of the East’ and Cochin, the ‘Queen of the Arabian Sea’ are also prominent attractions.


Being the largest producer of freshwater and marine fish each and every year, almost 10.85 people are engaged in varied fishing processes. It includes processing, packaging, transporting and exporting the fishes. The government of kerala has undertaken plenty of activities to improve the life of fisher men who are engaged in such activities. The production and export of fishes has a great impact on the economy of kerala. The state produces an estimated amount of 6.75 Lakh tonnes of fish every year.

Forestry & Wildlife

Kerala is a land which is luxurious in Flora and fauna with 10,336 square kilometres covered by dense forests. Wildlife and forestry has a great influence on the economy of kerala. Its huge resources of herbs which are exported to places outside India bring a large amount of income to the foreign exchange. Those by-products obtained through wildlife and forestry includes oils, woods, ivory, natural incense, scents and hides of the animals. Apart from leather producing units, wood and ivory carving business, the products of perfume and incense preparing cottage industries are attained from wildlife and forestry.