Kerala economy posted positive growth for second consecutive year: State Economic Review

NewsDrum Desk
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Thiruvananthapuram, Feb 2 (PTI) Kerala's economy posted positive growth for the second consecutive year 2022-23 with the Gross State Domestic Product (GSDP) clocking 6.6 per cent growth at constant prices, according to the Economic Review tabled in the Kerala Assembly on Friday.


The Economic Review 2023 said the per capita income of the state increased by 6.06 per cent to Rs 1,74,214 in 2022-23 (QE), compared to Rs 1,64,261 in 2021-22 (PE).

It also said the state has effectively reduced its revenue deficit from 2.23 per cent of GSDP in 2021-22 to 0.88 per cent in 2022-23.

"Similarly, fiscal deficit as a per cent of GSDP has reduced from 3.99 per cent in 2021-22 to 2.44 per cent in 2022-23," the document read.


It said the public debt-GSDP ratio has decreased from 23.54 per cent in 2021-22 to 22.75 per cent in 2022-23.

The total outstanding liabilities of the state have decreased from 35.92 per cent in 2021-22 to 34.62 per cent in 2022-23, the Economic Review said.

It also highlighted that the public sector undertakings under the Industry department reported a turnover of Rs 4,310.99 crore with an operating profit of Rs 60.71 crore.


The Economic Review attributed the high growth registered across sectors in 2021-22 to the recovery after the Covid-19 pandemic slowdown, and the stimulus packages of the government.

"The strong positive growth is because of policy interventions of the government. The investment that Kerala has made in its people and in human development and incomes and livelihoods is reflected in the recognition that the state has received," the document said.

It pointed out that the existence of poverty in Kerala is lowest among the states at 0.002 according to NITI Aayog's Multidimensional Poverty Index, 2023, consecutively for the second time.


Criticising the Centre, the Economic Review said a series of policies of the Government of India has resulted in a drastic decline in central transfers to the state.

"Today, the state economy faces unprecedented financial difficulties because of unfairness and inequality in Centre-State financial relations, and failure by the Government of India to implement policies of genuine federalism," the Economic Review said.

It said that despite these constraints, the Government of Kerala has shown determination to continue to build a new Kerala, 'Nava Keralam' – and to do so by investing in people's welfare and the growth of incomes.

"The government will continue to prioritise quality public education, health care services, and other social investments, to build high-quality infrastructure, encourage production in the primary sectors and manufacturing, to invest in modern services, including the Information Technology and tourism sectors, to deepen participatory local government, and to invest in building livelihoods and modern employment," the document read. PTI RRT RRT ANE