Question

Which of the following statements correctly describes the economic trend in Kerala during the period 1955-56 to 1965-66?

1. The Kerala economy experienced a significant slowdown during this decade.
2. There was a strong growth observed in all sectors of the economy.
3. The period was characterized by rapid industrialization and agricultural prosperity.

• A. 3
• B. 1, 2
• C. 1 മാത്രം
• D. ഇവയൊന്നുമല്ല

Answer 1

Answer:

C. 1 മാത്രം

Economic Trends in Kerala (1955-56 to 1965-66)

• The period between 1955-56 and 1965-66 saw a significant economic slowdown in Kerala, contrary to robust growth or rapid industrialization. This decade was characterized by various structural challenges.
• Formation of Kerala State: Kerala was formed on November 1, 1956, bringing together diverse regions with different administrative and economic backgrounds (Travancore, Cochin, and Malabar). This initial period was crucial for integration and establishing new administrative structures.

• Agricultural Sector:

  • Agriculture remained the dominant sector, but its growth was sluggish. While cash crops like rubber, tea, coffee, and spices contributed to export earnings, the productivity of food crops (especially rice) was relatively low.
  • Land fragmentation and lack of modern agricultural practices hampered overall agricultural prosperity.

• Industrial Stagnation:

  • Industrial development was extremely limited during this period. Kerala's industrial base was largely restricted to traditional industries such as coir, cashew processing, and handloom, which faced challenges like technological obsolescence and market fluctuations.
  • Lack of large-scale industries and private investment further contributed to the slow economic growth.

• Socio-Economic Factors:

  • Kerala was already experiencing high population density and a rapidly growing population, which placed significant pressure on available resources and employment opportunities.
  • Early emphasis on social development, particularly in education and health, while foundational for the 'Kerala Model' in later decades, meant that significant public resources were allocated to these sectors rather than directly to productive economic activities, contributing to slower immediate economic growth.
  • Political instability and frequent changes in government in the initial years after state formation could also have deterred long-term investment.

• Low Per Capita Income:

  • During this decade, Kerala's per capita income generally remained below the national average, indicating the state's lagging economic performance compared to other parts of India.
• In essence, the decade from 1955-56 to 1965-66 was a period of consolidation and laying foundational social infrastructure, but it was marked by a decelerated economic pace due to an underdeveloped industrial sector, struggling agriculture, and demographic pressures.