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Posted by lordleft 3/28/2025

How Kerala got rich(aeon.co)
380 points | 299 commentspage 4
dartharva 3/28/2025|
The dominant majority of Keralite youth that can, still emigrates to other states and countries. I have come across hundreds of Malayalis outside of Kerala who talk fondly of their homes, but refuse to admit there being any scope of nontrivial academic or professional growth within the state.

On the other hand.. yes, Kerala is very beautiful in many ways. I wish I was born there because it's nigh impossible to settle in permanently otherwise.

glass1209 3/29/2025||
This article and thread is highly engineered, apart from few comments. This got nothing to do people of kerala.

They have some of the highest debt in india. The government even went as far as to put empty home tax, which is highly uncommon in india.

Lack of industries and job opportunities people are moving out of the state. This is a a propaganda, probably by the state.you just need to do some simple search to validate my comments.

alephnerd 3/28/2025||
> Fifty years ago it was one of India’s poorest states

Yea that is a absolutely wrong. A state that had the highest literacy rate at independence will unsurprisingly remain at the higher end of developmental rankings..

In the 1970s Kerala was already comparable to Indian states from a human development and economic standpoint because of a strong shipbuilding and cooperative agricultural program (same with then undivided Punjab) [0] and by 1990 had developmental indicators comparable to Delhi NCR.

Instead, we should look at states that were historically more undeveloped than Kerala but are now within range of Kerala.

As such, a better rags to riches model to dig into is Tamil Nadu [1] or Haryana [2] - both were on the lower end of India's HDI rankings in 1990, and now outperform most states and lead India in GDP per Capita as well.

Himachal Pradesh [3] and Jammu Kashmir [4][5] are two others to also look at, as they are historically undeveloped agrarian Himalayan border states with laggard developmental indicators that used land reform, cooperative agribusiness, mass rural education drives, and specialized manufacturing (Pharma in Himachal, Food Processing in Jammu) to have high HDIs.

[0] - https://eacpm.gov.in/wp-content/uploads/2024/09/State-GDP-Wo...

[1] - https://documents.worldbank.org/en/publication/documents-rep...

[2] - https://www.tribuneindia.com/news/archive/comment/birth-of-h...

[3] - https://documents.worldbank.org/en/publication/documents-rep...

[4] - https://ras.org.in/index.php?Article=land_reform_in_kashmir

[5] - https://cup.columbia.edu/book/a-strategic-myth/9788194717560...

blackoil 3/28/2025||
As per your 1st document (page 15). Kerala has risen from 84.6 to 152 (~80%) while Haryana from 106.9 to 176.8 (~65%) in addition to the fact that most of the Haryana's growth has come from being in proximity of New Delhi. Same for Tamil Nadu (56%).
alephnerd 3/28/2025||
If you look at the results of India's National Human Development Report from 1981, Kerala was already further ahead of any other state [0][1]. And the report I listed did not have data on half of the states that existed in India in 1980.

> most of the Haryana's growth has come from being in proximity of New Delhi

Not really.

Delhi NCR de-industrialized in the 1970s-80s due to militant labor unionism [2]

Furthermore, much of Haryana's population lives well outside of what became Delhi NCR, and urbanization only began in the 1980s with the development of SEZs in Manesar, Faridabad, and Gurgaon.

> Same for Tamil Nadu (56%).

Tamil Nadu shared similar developmental metrics to Haryana in the 1981 NHDR, neighbored a state in an active civil war that often leaked into the state (Sri Lanka / LTTE), and had severe caste fractures.

[0] - https://en.m.wikipedia.org/wiki/List_of_Indian_states_and_un...

[1] - https://www.researchgate.net/figure/HUMAN-DEVELOPMENT-INDEX-...

[2] - https://www.jstor.org/stable/4376065

alephnerd 3/28/2025|||
Also, not hating on the Kerala model - every state in India is now in the position where they can take advantage of it.

But I do not think it's replicable in most other LDCs due to historical quirks.

Like, Malawi, Guinea, or Afghanistan can't use much of the "Kerala Model" to succeed, as India was unique in that it was subsidizing the UAE's economy with the "Gulf Rupee" [0] (maybe Cambodia/Laos thanks to Thailand, but it ain't a great reason why IYKYK)

[0] - https://ar.m.wikipedia.org/wiki/%D8%B1%D9%88%D8%A8%D9%8A%D8%...

kedarkhand 3/28/2025||
Hopefully Uttarakhand can follow Himachal Pradesh, but it is ravaged by national parties as of now, best case scenario, the new youth leadership of UKD actually wins and does some work
alephnerd 3/28/2025|||
Uttarakhand will not develop unless there are incentives to invest outside of Dehradun.

HP doesn't have a "Dehradun", which means local netas have an incentive to invest in their zilla instead of hoarding cash and real estate in a major hub. Thus, Himachal benefited from a Pharma and Food Processing industrial policy in the 1990s-2000s that industrialized the rural area around Baddi and Una, and a lot of other smaller food processing and light manufacturing industries across lower Himachal.

Also, Uttarakhand has too few MLAs for the size of population. UK has 70 MLAs but 10 million people, but HP has 68 MLAs with 6.5 million people. This means UK MLAs are much more divorced from local panchayats compared to in HP.

There is a good case study about this at Harvard Business School [0]

[0] - https://www.hbs.edu/ris/Publication%20Files/Asian_Survey_550...

kedarkhand 3/29/2025||
Agree on the point of Dehradun, as for the number of MLA's, that is due to the growing concerns of the native Pahadi population. The plain regions of Uttarakhand have been settled by desi people in recent decades and due to the difference in population density and fertility rates, their population is growing more and more. Now the Pahadi people have genuine concerns that everything they fought for during the Uttarakhand Movement will go to waste. And this is already happening, the finance minister of Uttarakhand abused pahadi people in the Vidhan Sabha, thankfully due to many protests, he has resigned. But if plain regions get majority seats, it would give approx 18% of UK the right to govern the entire region!
alephnerd 3/28/2025|||
> best case scenario, the new youth leadership of UKD actually wins and does some work

Trust me. You don't want that. Ussi najuwane nu khadi pata ni hege (Kangri but translate to your equivalent)

kedarkhand 3/29/2025||
Even if they lack experience, they are still a better alternative than BJP and Congress who have done nothing but loot Uttarakhand up to this point!
greekanalyst 3/28/2025||
It's pretty crazy how many new billionaires have been minted in Kerala.

https://english.mathrubhumi.com/news/money/malayalis-make-in...

SandraBucky 3/29/2025|
you should check the Maharastra list
snyp 3/28/2025||
Love Kerala, highly underrated tourist destination IMHO compared to the more traditional Indian destinations.
nithssh 3/29/2025||
Isn't Kerala's economy held up by remittances and duct tape?
hshshshshsh 3/28/2025||
* Access to sea routes from west and east. Easy access to ideas from around the world. Christianity and Islam came to Kerala long time back peacefully.

* No big invasions from outside India. North India constantly faced Invasion.

* Tropical weather which makes doing agriculture easy.

* Good rainfall and no need to worry about water. Many Indian states you need to worry about water accessibility.

* No shit given to anyone caste or religion for the most part except for things like marriage.

epolanski 3/29/2025||
What's interesting is that 50 years ago or so it had one of the highest concentrations in India of Dalits (lowest caste).
kappi 3/28/2025||
Looks like this is one sided political propaganda article. Googling shows real picture.

Unemployment is at 40%. https://en.wikipedia.org/wiki/Unemployment_in_Kerala

Kerala is in the grip of a surging drug crisis https://economictimes.indiatimes.com/news/india/kerala-is-in...

Kerala rooting on central govt to solve state's Rs 26,000 crore monthly expenditure crisis https://keralakaumudi.com/en/news/news.php?id=1498119&u=kera...

jeswin 3/28/2025||
Yep. I lived there for the first two decades, and outside Kerala for the next two and a bit. The only thing Kerala exports is the workforce, since it's impossible to start anything in Kerala thanks to politics and high costs. I know because I've tried. Kerala had historical ties with the Middle East thanks in part to a substantial Muslim population, and the migrant labour force was able to funnel some of Middle Eastern prosperity during the oil boom years back into the state. That is in a nutshell, Kerala's economic story.

Speaking of the left, I remember being next to a protest circa 1990 against ... computers!

giraffe_lady 3/28/2025|||
It's not clear what you tried to start and absent any other information your personal failure at it isn't a compelling alternative picture of the region's development to me.

I'm sure there are valid other views than the one presented in the article, I'm not saying there aren't. But as someone who doesn't know much about the region, you aren't really giving me more information about it, or giving me any reasons to take your view more seriously than the one presented in the article.

jeswin 3/28/2025|||
You can completely ignore what I said about my personal experience. The rest of it is still valid, and please read the child comment I posted on the same sub-thread.

Basically, Kerala exports a workforce because it can't produce or export anything else. At roughly a third of the GDP (in 2012 according to Wikipedia), it's a remittance based economy. Someone commented that remittances are a smaller part of the economy of late (and that might well be true), but in the last decade or so Kerala is also heavily in debt.

YouAreRONGS 3/29/2025|||
I think the main point of the opposition argument is that it's Kerala's religious demographics that led the state to be dependent on Middle Eastern remmitence. If you did a demographic survey of South Asians in the Middle East, the vast majority of them would be Muslim. It's a good way to reach a lower middle income level, but it's not achieving the type of growth needed to build industry and service.
harichinnan 3/28/2025|||
You aren’t keeping up then. Remittances is a much smaller % of economy these days.
jeswin 3/28/2025||
Ten years back remittance was 31% of the GDP [1] - a massive number. It might have declined, but the tiny state accounts for 20% of India's inward remittance while holding a mere 3% of the nation's population. Wikipedia says that 3 million people are working abroad (mostly in the middle East), which is like 10 percent of the population (what percentage of the youth will that be?). Also, a very significant number of Malayalees work in neighbouring states - again due to Kerala having no industries.

I don't have numbers for the last ten years, but if remittance has gone down, it is also neck deep in debt. I am in Kerala quite frequently, and can confirm that there are no industries there - except for tourism, and some IT which is relatively miniscule compared to neighbouring states.

[1]: https://en.m.wikipedia.org/wiki/Economy_of_Kerala

gyan 3/29/2025||
Remittances for 2023 made up 23% of state GDP.

Table 5.2, pg 51 of https://iimad.org/wp-content/uploads/2024/06/KMS-2023-Report...

rafram 3/28/2025|||
You’re reading the youth unemployment rate. Overall is only 9% (still not great, but much better).
rakejake 3/28/2025|||
The article is a classic submarine[0] for Kerala.

"The state has one of the highest concentrations of startups". I laughed out loud at this one. Of all the half-truths peddled in that article, this was easily the most hilarious and egregious.

[0] - https://www.paulgraham.com/submarine.html

seltzered_ 3/28/2025||
Perhaps they mean small business entrepreneurship, not tech startups?
rakejake 3/28/2025||
Whatever it is I am not buying it. Kerala is notoriously an incredibly hard place to do business in, so a line like this needs some real hard stats to back it up.
xyst 3/28/2025||
yup, a definitive “neoliberal”/“neoclassical” economic theory puff piece.
harichinnan 3/28/2025|||
Crime statistics are because Kerala Police isn’t as corrupt and registers more crimes compared to rest of India. It’s a good thing as most crimes goes unreported in India as police are corrupted in rest of India.
impomura 3/28/2025|||
a neoliberal neoclassical puff piece on the only region in india ruled by the communist party? that's fresh
cafeoh 3/28/2025||
The region has remnants of socialist ideas. The article, however, is indeed a puff piece on the vastly dominant economic theory, which is, as it turns out, not "fresh" at all.

I will say however that I think it's unfair to call professor Roy a neoliberal. Being a neoliberal is merely the expectation for most economic "theorists", but his vocal apologetics for imperalism and colonialism is not.

> Indian Marxists viciously attacked the CEHI, arguing the imperial state's aim was to extract surplus from India, that it withheld the capacity to do good in famines, and deployed the capacity to cause harm at all other times.

> In this void, blog and trade-book writers moved in with a leftist-nationalist political agenda posing as economic history. Most of their claims can be dismissed by subjecting them to the 1980s test: Can economic change be read as an effect of the Empire? The answer remains: No.

This is indeed a very powerful purity test, "Do your claim go against my utterly ahistorical narrative? If not, then I can comfortably dismiss them without addressing them."

> That India's trade surplus meant Britain looted India is bad logic because the surplus did not mean theft but the purchase of services. “Millions of Indians died of policy-induced famines” (Hickel) is bad logic by assuming infinite state capacity was deliberately withheld.

This one is quite rich aswell, it's just blunt unapologetic imperalism denial. It's bad logic because the logic bothers me.

I mean it just goes on and that's just his most recent tweets.

sashank_1509 3/29/2025|
I keep hearing this Kerala has great literacy rate cope, but I’ve come to realize literacy rate doesn’t matter. Literacy rate is a very white collar, tech bubble bias. People of our social class, cannot imagine being unable to read or write until you realize that American literacy rate in 1900 was 46% (< 96% of Kerala today) and no one is going to claim Kerala of 2024 was richer than America of 1900.

What you really need is industry. Kerala on that note has a very low score. Many states have much bigger industry and thus work for the people in those states. Kerala is still a rural farming/ tourism state and the only reason it has any money is because they send people to do blue collar back-breaking work in UAE and get back remittances.

To be fair, this is an India wide problem. India creates far more engineers than it needs, hence they all leave to find jobs elsewhere. There is almost no high quality engineering jobs in India, if they exist they are a part of US based tech companies. All Indian companies are stuck 10+ years in the past. Among that Kerala is a particularly bad offender where it doesn’t have even the existing textile/ steel/ automotive industry that other states do.

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