Saturday, July 3, 2010

God's Own Country


Kerala is God’s own country. It is a model state for its excellent human development record. With a population of 3.18 Cr, Kerala’s economy mostly hinges on remittances from its 2 million migrants who work in all weather conditions to send back approximately $ 20 billion which constitute roughly 13% of India’s Foreign Exchange Reserves. Kerala’s per capita income (Rs 24,053) at current prices has surpassed the national average (Rs 20,989) 2003-4. The central investment in the state (Rs 19,144 Cr) is 2.44% of India’s total central investment (Rs 7.83 lakh Crore). This is the state which accounts for India’s 25% of branded jewellery, more than 50% of the population do not have employment, there are around 5 million in the waiting list of the Employment exchanges, in a day, about 26 persons take their life (18 men and 8 women) and per capita consumption of alcohol is 8.3 litres (first state in India) against Punjab’s 7.9litres.

Kerala has hardly seen any industrialization, and the industrial growth last year was (-) 4.44% at constant prices and (-) 2.88% at current prices. But an eight period average (2000-1 to 2007-8) will show that at constant prices, it was 4.9% and 8.5% at current prices. This was largely due to the performance of Rubber, Spices, Tea (was mostly negative), marine products (off and on positive), cashew kernels, Coir and Coconut products (better performance in the last 2/3 years), Special Economic Zone in Kakkanad also showed some impressive returns.

Former Minister of State for External Affairs and MP from Thiruvanathapuram, Shri Shashi Tharoor, mobilized industrialists from Gulf, and made their Rendezvous Sports Club to bid US $ 333.3 million for the IPL. This with the Sahara who bid $ 370 million accounted more than the bid of all the other 8 teams in the IPL. It is, indeed, a great gesture from Shri Tharoor, who has brought IPL to Kochi, using his mighty influence. Had he prevailed on some industrialists who are in the Gulf and other countries to set up units here like Shri Dyanidhi maran did in Tamilnadu, he would have created gainful employment and provided a window for industrial growth.

Does this mean, the priority of Kerala and its men are different? These figures will reveal why?

The State Commercial Tax estimates annual gold sales at Rs 10,000 Cr. Even though gold jewelers would have been caught in the price cross current of a commodity that is both a symbol of conspicuous consumption and prized investment, have no fear seeing the surging of Customers to the Jewellery shops. The national markets for gem and jewellery has hit $ 20 billion (this year) and expected to touch $ 30 billion (2015). Branded jewellery is growing at a steady 40%. Of this, Kerala account for nearly a fourth of India’s 900 tonne gold sales.

According to statistics provided by Kerala State Beverages Corporation, the liquor sales fetched Rs 4600 Cr in 2008-9 against Rs 3,670 Cr (in the previous year). Accordingly 2 million Keralite drink every day while 7 million drink atleast once in a month. Kerala’s per capita consumption of liquor which stands at 8.3 litres is the highest in India. During the Onam week, people purchased liquor worth Rs 154.44 Cr (against Rs 126.07 Cr) last year, a growth rate of 41.53%, and on the Onam eve, Rs 34 Cr liquor was purchased and consumed, the highest in a day during the year

The state has the highest suicide rate. In a day, 26 persons take their life which includes 8 women. This is more than double of the national average. The malaise is spread throughout Kerala, urban and rural, towns and villages, young, middle aged, aged and those who find life miserable take away their life.

Is there a distortion of priorities, or is it a baffle that people do not know how their knowledge and wealth can be used wisely. Like the Minister, who could have used his connections to bring in lot of industries which would be a perennial source of income, or promote Kerala’s rich tapestry of products for increasing its exports? They dilute Kerala’s needs. And the result, there is tortoise growth.

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