Kerala economy: From impressive social gains to mounting fiscal strain

In the 19th century, Malayalees primarily consumed gruel and mash made from millet varieties. Kerala's economy has transformed significantly since then, experiencing robust growth in recent years. The Kerala Model, characterized by high literacy rates, low infant mortality, and a strong social welfare system, emerged as a result of government policies and social reform movements. However, the state continues to grapple with challenges such as unemployment, particularly among its youth. Kerala's economic growth has been fueled by remittances from Gulf countries, but the influx of these workers has also led to concerns about their long-term integration into the workforce. The state government is focused on creating "modern employment" opportunities for its young population and promoting a knowledge-based economy.