Kerala: India’s Highest HDI, a Testament to Economic Advancement
Kerala is the most developed state in India. In comparison to the national average of 0.724, it has a high Human Development Index (HDI) of 0.794. Let’s explore how Kerela developed so much with smart decisions!
Kerala is the most developed state in India. In comparison to the national average of 0.724, it has a high Human Development Index (HDI) of 0.794. Kerala also boasts a high literacy rate, the highest of any Indian state at 94.00%.
Let’s see some stats about Kerela-
- With a per capita Gross State Domestic Product(GSDP) of rupees ₹257,711, which is more than the national average of ₹1,84,956, the state has a robust economy. In other words, the average income per person in Kerala is slightly more than 1.4 times the Indian average.
- Kerala also excels in social metrics including gender equality, health, and education.
- 0.71% of population is below poverty line compared to 10.2% of Indian population.
- Kerela recorded a growth of 12.01% GSDP in 2022 as compared to -8.43 per cent in 2020–21.
- The contribution of the construction and the services sectors to the economy are higher in Kerala than in the rest of India. But there has been a large-scale withdrawal of workers from agriculture over the years.
- Kerela has a long history of health-focused policies (even before Kerela was a state).
But Kerela was not always rich, there was a time when the state was really poor and did not have enough food to eat. During 1990s, it’s per capita income started increasing. As of now the poverty rate of Kerela is least in our country. What did Kerela do to improve it’s conditions?
The answer may be obvious- They invested a lot in their healthcare and education system (like every developed nation does).
- In 1950s Kerela had mostly private schools with teachers earning very less salary. The Communist party started aiding these schools and increased the teacher’s salaries.
- The result of this investment can be seen in this table-
- Lower castes were educated.
- People started taking control of their own lives.
- Vaccination was made compulsory in 1865 itself (by rulers of Travancore and Cochin) and reduced deaths due to diseases. These reforms were continued post-independence as well. And these are the results-
- Due to land reforms majority of Kerela population started owning land.
- Kerela became educated and healthy before becoming rich.
- Kerela made a ‘morally superior choice’ by prioritizing people’s health and education rather than on industrial and entrepreneurial reforms first.
- Kerela was a tough place for business as the unions there had a lot of power and created obstacles in continuing the work smoothly. So, it was industrially week.
- In 80s, came a reform. Employment opportunities appeared in middle east. The investment in education and healthcare proved to be the best decision. People started migrating for jobs there.
- The families that started getting money from outside, saved more and started investing in assets like land.
- Kerela has very high agricultural wages, because of which workers from north Indian states have migrated there. There is a shortage of labors there because workforce has migrated to gulf.
- The farming of cash crops in Kerela is huge. So Kerela earns a lot from agriculture too. (Coconut and Rubber being max produced).
Still Kerela is facing major problems like-
- Unemployment due to reverse migration during covid.
- Aging population which requires pension, putting pressure on finances.
Kerela is an example of how education and healthcare can improve living conditions drastically.
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(Source- Wikipedia, [The Indian Express](https://indianexpress.com/article/political-pulse/keralas-growth-rate-economic-review-8419990/#:~:text=The review said Kerala is,Indian average in 2021–22.), Scroll.in, Youtube)
