Kerala 2005 - of Planning Commission

CHAPTER 3
ASSESSING DEVELOPMENT: THE INCOME DIMENSION
47
Table 3.3: Annual Remittance in Cash from Abroad, by Districts, 1998
District Rs. (million) % of Total Per Emigrant (Rs.) Per HH (Rs.) Per capita (Rs.)
Thiruvananthapuram 3,386 9.9 22,035 5,168 1,081
Kollam 2,864 7.6 25,111 5,119 1,154
Pathanamthitta 2,328 7.1 23,694 7,898 1,922
Alappuzha 2,172 6.4 35,869 4,545 1,048
Kottayam 1,009 3.2 24,787 2,573 526
Idukki 38 0.1 7,111 151 35
Ernakulam 4,076 12.9 40,394 6,659 1,375
Thrissur 5,096 13.6 28,858 8,099 1,744
Palakkad 3,390 8 26,188 6,368 1,302
Malappuram 6,156 17.1 21,217 10,205 1,664
Kozhikode 2,181 6.6 17,538 4,133 759
Wayanad 60 0.2 11,583 381 81
Kannur 2,057 5.7 21,985 4,377 803
Kasaragod 511 1.6 14,655 2,576 427
Kerala 35,304 100 24,809 5,459 1,105
Source: Zachariah, Mathew and Rajan (2003).
Table 3.4: Service Sector Growth in Kerala and India (%)
Industry Kerala All India
Period 1 Period 2 Period 1 Period 2
1. Transport, Storage & Communication 6.55 12.71 5.45 7.37
2. Trade, Hotels and Restaurants 0.88 6.29 4.79 7.12
3. Banking & Insurance 9.19 12.21 8.63 11.51
4. Real Estate, Ownership of Dwellings and Business Services -0.71 -20.15 5.63 7.18
5. Public Administration 8.77 6.40 5.72 5.82
6. Other Services 3.27 6.14 3.70 7.05
Tertiary Sector 3.28 7.55 5.19 7.48
NSDP/GDP 1.89 5.79 4.08 5.98
Note: Period 1=1970-71 to 1986-87 and Period 2= 1987-88 to 2002-03.
Source: Estimated from CSO, National Accounts Statistics, various issues.
there was a growth boom in the second period in transport
and communication as well as in trade and hotels.
2.6 Structural Change of the Economy
Having examined the growth behaviour of the Kerala
economy, the interesting question is: Has this growth
resulted in a structural change in the economy? The
sectoral shares to the NSDP show that the share of the
tertiary sector increased dramatically while that of the
primary sector decreased. It is also significant that the
conventional growth transformation (from agricultural
sector to industrial sector and then to tertiary sector)
has not taken place in Kerala. This is evident as the
relative shares of the three sectors, in both income
and employment, on an average, show that the tertiary
sector has been the major contributor followed by the
primary sector (Table 3.5). The tertiary sector’s share
increased by 37.5 per cent in income and 43 per cent
in employment during 1983 to 1999-2000, whereas the
primary sector’s share decreased by 26 per cent and
36 per cent, respectively, during the same period. In the
secondary sector, while employment share increased by
27 per cent, income share fell by 24 per cent. 7
7 The time points taken coincide with the NSSO data on Employment/Unemployment.