Question

How did Kerala's position in terms of per capita income and share of industry compare to the national average in 1950-51 and 1955-56?

• A. It was significantly lower than the national average
• B. It was about the same as the national average
• C. It was higher than the national average
• D. The data was not available for comparison

Answer 1

Answer:

C. It was higher than the national average

Kerala's Economic Advantage in the Mid-20th Century

Historical Context (1950-56):

• During 1950-51 and 1955-56, the present-day state of Kerala did not exist as a single political entity. The data refers to the regions of Travancore, Cochin, and Malabar, which merged to form Kerala on November 1, 1956.

• The princely states of Travancore and Cochin had a history of progressive administration and social reforms, which contributed to their economic standing.

Higher Per Capita Income:

• The economy of Travancore and Cochin was significantly bolstered by a strong plantation sector. Cash crops like rubber, tea, coffee, cardamom, and coconut were cultivated extensively and exported, generating substantial income.

• Unlike many other parts of India, which were predominantly focused on subsistence agriculture, the export-oriented cash crop economy of these regions ensured a higher economic yield per person.

• Remittances, though not as dominant as in later decades, were beginning to contribute, albeit in a smaller measure, to the household incomes of these regions.

Higher Share of Industry:

• While not heavily industrialized in the conventional sense, the regions had a significant presence of agro-based industries.

• Industries such as coir processing, cashew processing, seafood packaging, tile manufacturing, and rubber goods production were well-established, particularly in Travancore and Cochin.

• These processing industries contributed a higher percentage to the regional domestic product compared to the national average, where heavy industries were still in their nascent stages of development post-independence.

• The princely state of Travancore, in particular, had initiated several public sector undertakings and industrial ventures even before India's independence, laying a foundational industrial base.

Key Contributing Factors:

• Education and Human Development: Travancore and Cochin had historically higher literacy rates and better access to education and healthcare compared to the national average, which fostered a more skilled workforce and contributed to economic productivity.

• Trade and Connectivity: Access to seaports facilitated the export of plantation products and processed goods, connecting these regions to international markets.

• Early Policy Initiatives: The progressive policies of the princely states, focusing on infrastructure and social development, provided a fertile ground for economic growth.

Competitive Exam Facts:

• The concept of 'Kerala Model of Development' emphasizes high human development indicators (like literacy, health) despite relatively lower per capita income (in later years) and industrialization. However, in the 1950s, Kerala's constituent regions were unique in having *both* higher human development and a relatively higher economic standing in terms of per capita income and industrial share compared to the national average.

• The First Five-Year Plan (1951-56) focused heavily on agriculture and irrigation nationwide. Kerala's regions, with their established cash crop base, were able to leverage this focus effectively.

• The higher economic base in the 1950s also provided a foundation for the state's later focus on human development, which is a hallmark of the Kerala Model.