Kerala economy records robust growth in 2024-25, services lead expansion

Thiruvananthapuram, Jan 28 (IANS) Kerala’s economy posted strong and broad-based growth in 2024-25, with the Gross State Domestic Product (GSDP) in real terms expanding by 6.19 per cent to Rs 6.85 lakh crore, up from Rs 6.45 lakh crore in the previous year, according to the State’s Economic Review 2025, that was placed in the Assembly on Wednesday.

It pointed out that growth was supported by steady expansion across primary, secondary and services sectors, alongside improved capital spending and policy-led interventions.

At current prices, GSDP rose by 9.97 per cent in 2024-25, while Gross State Value Added (GSVA) grew by 10.08 per cent.

Kerala continues to rank among the top ten states in terms of per capita income, with per capita GSDP at constant prices increasing to Rs 1.90 lakh, reflecting a 5.67 per cent rise over the previous year and remaining well above the national average.

The services sector remained the backbone of the economy, contributing 63.45 per cent of GSVA, with positive growth reported in information technology, tourism, trade, transport and communication.

The state’s IT ecosystem continued to expand, supported by Technopark, Infopark and Cyberpark, while the number of tech startups rose sharply to 6,227 in 2024-25 from 4,681 a year earlier.

The secondary sector accounted for 28.49 per cent of GSVA and grew by 7.87 per cent in real terms.

Construction and manufacturing registered growth of 8.12 per cent and 7.42 per cent, respectively, aided by infrastructure investments and enterprise promotion initiatives.

Under the ‘Year of Enterprises 3.0’ campaign, over 1.17 lakh new enterprises were launched in 2024-25, generating investments of nearly Rs 7,800 crore and employment for about 2.49 lakh people, with women promoting nearly one-third of the ventures.

The primary sector showed a marked recovery, growing by 2.36 per cent compared to a modest 0.24 per cent in 2023-24.

Fishing and aquaculture recorded double-digit growth of 10.55 per cent, while agriculture and allied activities grew by 2.14 per cent.

Total fish production stood at 9.28 lakh tonnes, reinforcing Kerala’s position as the third-largest seafood exporting state by volume.

On the fiscal front, the state continued its consolidation efforts despite revenue pressures.

The fiscal deficit stood at 3.86 per cent of GSDP in 2024-25 and is projected to decline to 3.16 per cent in 2025-26.

While total revenue receipts grew marginally, transfers from the Centre declined by over six per cent, underscoring Kerala’s increasing reliance on its own revenue mobilisation.

The Economic Review highlights that sustained public investment, decentralised governance, and a strong social sector framework remain central to Kerala’s development trajectory, even as the state navigates fiscal constraints and external uncertainties.

–IANS

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