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Kerala, renowned for its exceptional social indicators like world-class education and health, faces a persistent paradox of low per capita income despite high human capital, prompting a critical examination of its economic model. While the state has excelled in investing in its people, leading to high literacy and life expectancy, it struggles to translate this educational dividend into sustained domestic economic growth, with capital generation largely occurring elsewhere and only partially returning through remittances, a situation exacerbated by significant challenges in the ease of doing business. Despite impressive official Ease of Doing Business rankings, the article highlights that actual ground realities for businesses are hampered by arbitrary inspections, unpredictable enforcement, delayed approvals, and weak contract enforcement, suggesting the current "reforms" are input-focused rather than outcome-driven. To foster genuine prosperity, the article proposes three key market infrastructure interventions: implementing high-frequency public perception surveys to accurately gauge business sentiment, creating a payment registry to promote timely payments to MSMEs through transparency, and fixing land records to unlock credit and facilitate investment, arguing that strengthening basic market infrastructure for small businesses is crucial for realizing the state's economic potential.
The India EU trade deal is a significant outcome of global trade realignments, impacting geopolitical dynamics and economic strategies.
LSG Minister M B Rajesh told Onmanorama that the survey report is a fitting reply to those who have mocked the Kerala model.
Crucial day for LDF government ahead of the assembly polls.
Compared to 2017–18, the unemployment rate has declined by 4.2 percentage points, from 11.4 per cent to 7.2 per cent in 2023–24 in Kerala.
On a per capita basis, the real GSDP rose by 5.67% to reach ₹1,90,149, which remains significantly higher than the all-India real per capita GDP of ₹1,33,501. This is however, lower than 6.30% in 2023-24.
Kerala inflation rates are currently the highest in India, significantly surpassing the national average.
Kerala development focuses on transforming Kerala into the finest place to live and work.
48.5% of Kerala’s workforce (about 75 lakh people) were employed in the services sector in 2023–24, up from 42.6% in 2011–12.
Having completed 75 years as a sovereign democratic republic, Atmanirbharta is the way forward.
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