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Culture of kerala  >>  Business and Economy of Kerala

The business and economy of Kerala has been showing an encouraging growth trend, which is reflected in the overall prosperity of the state. The per capita GDP of Kerala is Rs.11,819, which is much higher than the national average. The main parameters of the business and economy of Kerala are agriculture, livestock, fisheries, forestry & wildlife, industry & infrastructure, minerals & energy, banking & finance, Kerala tourism, real estate, healthcare and the IT sector.

The business and economy of Kerala is dominated by agriculture. Nearly half

of the population of Kerala are dependent on agriculture for their livelihood. Kerala is the producer of 96 percent of India's total yield of pepper and 91 percent of natural rubber. Other major crops in the state are coffee, tea, coconut, cashew and the spices like cinnamon, nutmeg, vanilla and cardamom. Rice is grown in abundance in Kerala, and it is the staple food of its native people. Home gardening is very popular in Kerala. The citizens give significant contribution to the agricultural produce by this pleasant and productive hobby.

Animal husbandry and livestock is equally important aspect of the state's economy. It is a prevalent occupation in rural Kerala. It is supposed to be an ideal earning opportunity for the unemployed women and economically weaker, landless people.

A significant percentage of Malayalian people are busy in managing the livestock. They are engaged in activities like milking, feeding, cattle breeding and its healthcare, and livestock management. The Government of Kerala offers lucrative incentives to such professionals and promotes the livestock. The government also arranges educational programs for such people. The introduction of new breeds of cattle such as 'Sunandini' has given an impetus to the milk production in Kerala.

Kerala accounts for a huge output of freshwater and marine fish haul every year. Fishing and related activities such as processing, drying, packaging, transporting and exporting fish are the major occupations of about 10.85 lakh people in the state. The Department of Fisheries implements the various schemes for the welfare of these fishermen and workers. The state yields about 6.75 lakh tonnes of fish each year, which create a significant boost to the business and economy of Kerala.

Forestry & Wildlife
The dense forests have occupied about 10,336 square kilometers area of Kerala. Kerala is the home to a wide variety of flora and fauna. The forestry and wildlife play an important role in the economy of the state. The tax revenue obtained from the export of herbs and herbal byproducts has made a great contribution to the foreign exchange earning. The byproducts include ivory, oils, rosewood, teakwood, sandalwood, natural incense, tree barks, scents and hides of the animals such as fox, jaguar and elephants. Various industries like leather products manufacturing units, sandal and ivory carving business, fragrance and incense preparing cottage industries are well

establishedin the state, which are all products of a thriving forestry and wildlife scenario.

Industry & infrastructure

There are numerous industries flourishing in Kerala. Textile and electronics industries are abundant in Kerala. Tea, coffee, pepper, ginger, coconut and cardamom are the main export items in Kerala, which have spawned a variety of industries. The state has about 1.8 lakh small scale industries and 511 medium sized and large industries. Tourism and business process outsourcing are also playing major roles in the industry of Kerala.

Minerals & energy
Kerala has a high output of hydel power. The state is India's second largest generator of diesel-based thermal electricity. The state has a rich source of mineral ores including silica, quartz, bauxite and sillimanite. Moreover, the finest variety of China Clay is available in Kerala.

IT sector
Kerala has a booming software, e-business and e-commerce industry. The state has emerged as a major revenue generator in IT, with the increasing investments of multinationals and the creations of techno parks.

As Kerala is one of the major tourist destinations in India, tourism also plays a dominant role in the state's economy. The medical profession and the healthcare industry in Kerala are flourishing, which is paving way for medical tourism in the state.


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