Question

The economy of Kerala state can be divided into three phases. Which of the following statements are correct regarding the State of economy during the first phase (1956-1975)

1. State moved to a higher level of economic growth
2. Agricultural sector remained backward, with low productivity levels
3. Expansion of public sector through public investment with limited resources
4. The techno-economic survey estimated the unemployment rate as 13% in 1956

• A. 1, 3
• B. 2, 4
• C. 4 only
• D. 1, 4

Answer 1

Answer:

B. 2, 4

The economy of Kerala state can be divided into three phases

1. 1. The first phase (1956-1975)
   2. Second phase (1976-1990)
   3. Third Phase (1991-2020)

State of economy during the first phase

• State remained as very backward economy
• Agricultural sector remained backward, with low productivity levels
• Backward industries with dominance of traditional and labour intensive industries like coir, cashew, handloom etc.
• Massive poverty and high rate of unemployment
• According to one estimate the percentage of poor people in Kerala was 90.75% in 1960-61 (Dandekar and Rath)
• The techno-economic survey estimated the unemployment rate as 13% in 1956
• The Kerala model of development was presented in 1974 when 60% of the people were below poverty line (1973-74)