Kerela has high literacy rate then why is it not developed?
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Kerala, unlike other states in India has an interesting economic model of development solely based on human capital and services sector. Unless other states, geographically area wise the state is small and has a good amount of green cover/forests and wetlands . Since the state is ecologically sensitive, it is not possible to go for heavy industrialisation which will destroy the sensistive eco system. Militant trade unionism is another hindrance in investments in agriculture and industries. The state has made tremendous strides in IT sector with three major IT parks established. Majority of the revenue from the state comes from services sector and liqour sales. The revenue sharing model of federal and state govt in this sector is not advantageous for the state. Agriculture which form the mainstay of revenue for most indian states has taken a backseat in kerala. The state relies heavily on other states for agriproducts. These are the main reasons for the state govt to be bankrupt. But looking at quality of life and human development indicators, Kerala is the top performing state in India. The wages in kerala for labourers are one of the highest in India, causing an inflow of migrant labour into the state from North Indian States.
Surprisingly, kerala receives 50% of all overseas remittances to India. 2017 saw 65 billion$ sent to india from overseas indian workers and businesses. Although the government is bankrupt, the state is driven mostly by spending from overseas.
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Praseeth Prabhakaran, Research Engineer at Karlsruhe Institute of Technology
Updated Apr 13
Kerala is by no means a bankrupt state. Although in terms of area, it is the 22nd biggest (or to put it in a better way, one of the smallest states) in India, in terms of GDP estimates, it is the 8th biggest economy in India. In terms of GDP per capita, it is the 7th biggest and public debt is only around 31% of GDP which is a long way from bankrupt. There is a so called Kerala Fiscal Responsibility act that controls public debt and prevents it from going out of hand.
From 1980 to 2018, the Kerala GDP multiplied almost 25 times
Close to 11% of the Kerala GDP is from remittances and the rest are from a healthy service sector, a well functioning cash crop trade and tourism. Kerala also has the highest HDI among all Indian states.
And it has very low percentage (close to 7%) of its citizens below poverty line. This is the second lowest in the whole of India behind Goa.
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Vinayak S.Nair, lived in Kerala, India
Answered Aug 21, 2014
Well I think the answer would be that after becoming a "literate".they leave the state for better opportunities elsewhere..mostly the middle east,and U.S and the earned money is then used to buy "gifts" which are then brought back to the state and thus completely bypassing the state causing it to be bankrupt
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Surprisingly, kerala receives 50% of all overseas remittances to India. 2017 saw 65 billion$ sent to india from overseas indian workers and businesses. Although the government is bankrupt, the state is driven mostly by spending from overseas.
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Praseeth Prabhakaran, Research Engineer at Karlsruhe Institute of Technology
Updated Apr 13
Kerala is by no means a bankrupt state. Although in terms of area, it is the 22nd biggest (or to put it in a better way, one of the smallest states) in India, in terms of GDP estimates, it is the 8th biggest economy in India. In terms of GDP per capita, it is the 7th biggest and public debt is only around 31% of GDP which is a long way from bankrupt. There is a so called Kerala Fiscal Responsibility act that controls public debt and prevents it from going out of hand.
From 1980 to 2018, the Kerala GDP multiplied almost 25 times
Close to 11% of the Kerala GDP is from remittances and the rest are from a healthy service sector, a well functioning cash crop trade and tourism. Kerala also has the highest HDI among all Indian states.
And it has very low percentage (close to 7%) of its citizens below poverty line. This is the second lowest in the whole of India behind Goa.
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Vinayak S.Nair, lived in Kerala, India
Answered Aug 21, 2014
Well I think the answer would be that after becoming a "literate".they leave the state for better opportunities elsewhere..mostly the middle east,and U.S and the earned money is then used to buy "gifts" which are then brought back to the state and thus completely bypassing the state causing it to be bankrupt
hope it helpful....
mark as brainliest.......
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