Kerala is one of the most advanced states when it comes to social development and literacy. But paradoxically it has remained an elusive thing for the past few years when it came to economic development. This is one of the main reasons there is a huge diaspora to Middle Eastern countries for the search of better jobs and employment. Defying all the odds of all social factors, this idyllic region of sun-kissed beaches and lush coconut groves has sprinted forward ahead of all other states and achieved in being the most literate states of India (with more than 90% literacy rate).
But what was making most of the highly educated people move out of the city?
When it comes to poverty, it is also amongst the top performing states, reducing the number of rural poor with great land reforms. The state-funded welfare schemes are also doing well in providing health care and education. But still, the economy remained stagnant and there were no signs of advancement for years. Most of the economy (more than 30%) of the state is based on remittances which are sent back by more than 2 million people who are living abroad.
The major reason for the growing unemployment in the region was clear – there were very little jobs in Kerala. The majority of the economy before the mass diaspora was agricultural. Though the beautiful landscape and the tagline of ‘God’s own country’ have given to the rise of the tourism sector, the state was not reaping any benefits directly. Service tax is a federal tax, which at first goes to the centre and then distributed among other states.
The state of the economy further deteriorated when the government decided to deregulate most of the lower level jobs in the government and semi-government offices. The new positions were mostly contractual based and thus, led to lowering of the sense of security it once provided. So when the oil boom happened in the Gulf countries, the educated mass of the society found it as another source of employment.
How the economy is changing in the recent years?
Though the agrarian economy is still a dominant part of Kerala, the situation is fast changing with the growth of consumer-based population and the dwindling of the ‘self-employed’ class. The major factor is the absence of a robust manufacturing base in Kerala. But a new report has shown that this is all set to change as the manufacturing, hospitality and construction industry of the state is set to see an unprecedented development.
According to a study by the National Skill Development Corporation (NSDC), the manufacturing (13.3% employment opportunities), construction (16.5 % employment opportunities) and hospitality (15.3 % employment opportunities) industries of the state will create the maximum number of jobs in the next 10 years.
Tourism in Kerala is already an established industry and a tourism destination for both Indians and foreigners alike. The Kovalam beaches are ranked second to Goa. With the help of initiatives by the tourism department of the state government, the situation of the industry is expected to become better over the years. With the growing amount of infrastructure in the state, there is also rise in the employment opportunities in the construction and manufacturing sector. The most important thing is the initiative shown by the state government to woo the software companies of Bangalore to establish their offices in Kerala. The Technopark, located in Trivandrum, is the largest technology park in terms of built-up area. There are 286 IT/ITeS companies present there and employs more than 40,000 personnel in various sectors. Some of the prominent multinational companies are Oracle, TCS, Accenture and Infosys. It also is home to a number of reputed technical colleges.
From the above numbers we can see that Kerala’s economy got a breath of fresh life and it is on the track of development in terms of employment and jobs.
Author Bio:- Hasib is a professional writer at one of the best job sites in India –Naukri.com and often writes articles that guide students in their education and career. An avid reader and an adventure enthusiast, his thirst for knowledge never gets satiated. Follow him @ twitter, Google+, LinkedIn