The pressure on land in Kerala is the highest in India and the state's economy continues to be dominantly agrarian. The annual per capita income in state at current prices has risen to Rs. 19,461 in the year 1999-2000 from Rs. 5,065 in 1992-93.During 2004-05 the state economy exhibited a high time grow th rate of 9.2%.this was possible by the targeting growth rate of 13.8% in the service sector.The rate of growth of different sectors of economy are the following.
The share of contribution of agriculture to state income has been on the decline as the other sectors registered higher rates of growth.The growth rate in agriculture income recorded during 2004-05 was 1.7%.Data on average farm price of principal crops grown in kerala shows increase in 2004-05 compared to previous year .The price of rubber and coffee improved during 2005-06 compared to 2004-05.
One of the remarkable developments during the last three years is the lease land farming by the neighbourhood groups of women below poverty line under kudumbasree. State government has established the state horticulture mission for the integrated development of horticulture.
During 2005-06 planning commission has provided financial assistance for the completion of Muvattupuzha valley Irrigation project.considering the severity of coastal erosion in kerala the twelfth finance commission has awarded RS. 175 crore as grant in aid for coastal zone management for implementation over a period of five years.
The industrial growth rate was 5.77 %in 2004-05.performance of industrial exports of almost all major products recorded positive growth.’Prathyasa’ which is to facilitate the setting up of 25000 units in the small scale sector by creating employment to one lakh people is being implemented by the state.In the traditional industries coir industry stands first in providing employment [3.75 lakh workers.]followed by the handloom sector with an employment of 1.75 lakh workers.
IT sector was promising during 2004-05.in the E-governance initiatives the achievements include first computerized panchayat and fully computerized collectorate.Kochi ranked second in super ITES destinations.
Tourism sector also witnessed remarkable progress.the foreign tourist arrivals increased by 17.28% which constitutes 10.26% of the total foreign to the country.The foreign exchange earnings recorded 28.82% growth in 2004-05 providing employment to eight lakh people.
The infrastructure on road development in the state lay emphasis on improvement and upgradation of the existing roads rather than construction of new ones.The vallarpadam international container transshipment terminal would make kochiport a major hub port in the indian ocean region.Twelfth finance commission has awarded Rs.225 crore for 2005-2010 to develop the inland waterv transport.
The installed capacity 0f power in the state during 2004-05 is 2617.22 MW. the per capita consumption of energy increased from 386kwh in 2003-04 to 400kwh during 2004—5.the number of energy consumers increased from 73 lakh to 77.9 lakh till 2004-05.
In the kerala development plan a programme of institutionalising decentralisation has been intensified with emphasis on developing innovative means of financing through taxes,community contributions and borrowings,reducing waste and leakage and improving service delivery standards in local governments.computerisation of local governments and online monitoring of progress of plan implementation of panchayats are nearing completion.
Kudumbashree have taken active role for the implementation of various programmes to reduce poverty.SJSRY,NSDP and VAMBAY have provided gainful employment to the urban poor through encouraging the setting up of self –employment ventures or through wage employment.
During 2004-05 some innovative developments has been evolved in the banking sector,particularly in customer services and facilities,e-banking,phone banking
ATMs etc..are some among them .the priority sector advance during 2004-05 was Rs.18387 crore and agriculture credit was Rs .6854crore.
The president of india Dr. A.P.J. Abdul kalam outlined ten missions for keralas prosperity and development.kerala government and legislative assembly suggested six more missions.these sixteen missions are known as ‘missions for kerala’s development and poverty allevation.
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