KOCHI: Buoyed by a surge in tourism-related segments, Kerala’s economy is on the path to revival after a two-year slump brought on by the pandemic. As per the data released by the economics and statistics department on Tuesday, the state’s Gross State Domestic Product (GSDP) for 2021-22 showed a robust growth of 12.01%, its fastest in a decade, owing to the lower base of previous year. This is much faster than the national economic growth rate of 8.7% in 2021-22.
Kerala’s GSDP growth rate was negative in 2020-21 (-8.43%) and just 0.9% in 2019-20, owing to the slowdown induced by Covid. In absolute terms, Kerala’s GSDP stood at Rs 5,73,591.46 crore in the fiscal year ending March, compared to Rs 5,12,076.08 crore in 2020-21. The state’s economy also surpassed its highest level, Rs 5,59,194.18 crore reported in 2019-20.
Amid sectors, hotels and restaurants grew at a scorching pace of 114.03%, the fastest by any segment. They were followed by air transport which registered a growth of 74.94%. In 2020-21, both the segments had recorded negative growth of -58.76% and -67.45%, respectively, courtesy the pandemic and the travel restrictions. However, M A Oommen, honorary fellow of Thiruvananthapuram-based Centre for Development Studies, said the GSDP data was nothing to write home about.
Manufacturing sector not doing well
“First of all, the growth comes from the low base of previous financial year. Secondly, serviceoriented sectors boosted it,” M A Oommen said, adding that manufacturing and agriculture sectors are not contributing meaningfully to the state’s economy.
As per the data, the share of agriculture, forestry and fishing in Kerala economy fell from 8.26% in 2020-21 to 7.72% in 2021- 22, despite the sector growing by 4.64% in 2021-22. “Agriculture has been the forte of Kerala economy all along, as the state is well-endowed by nature.
The once-flourishing sector now has a marginal presence in the state’s economy,” said Oommen. Meanwhile, the manufacturing sector, which generates jobs, has not been doing well. It grew by just 3.63% in 2021-22, compared to 2.39% in the previous year. Manufacturing sector only has a 10.53% share in the state’s economy, as per the data.