Question

Kerala faces a growth paradox because:

• A. Strong exports but low remittances
• B. Agriculture dominates GSDP
• C. Low literacy but high income
• D. High human development but weak industrial base

Answer 1

Answer:

D. High human development but weak industrial base

Kerala's growth paradox refers to the state's unusual economic profile where it has achieved levels of human development (health, literacy, life expectancy) comparable to developed nations, but its economic growth is not driven by a strong, modern, and employment-generating industrial or productive sector.

This paradox is characterized by:

• High Human Development: Excellent social indicators, often attributed to early social reforms and public action.

• Weak Industrial Base: A relatively small manufacturing sector and a dependence on the services sector (like tourism, trade) and, critically, remittances from Keralites working abroad (especially in the Gulf countries). This dependence makes the economy vulnerable to global shocks.