Analyzing the Low Manufacturing Driven Economy of Kerala, India

The objective of this paper is to analyze the low contribution of the manufacturing sector in Kerala, an Indian state. The research paper tries to provide theoretically evidence to support the importance of manufacturing for the progressive economic development of Kerala. The paper will attempt to reveal to the extent to which manufacturing sector helps create jobs, expands the use of technology and in the long-term acts as an assurance to for a smooth economy. Kerala is supposed to be a model state for developing countries in terms of high Human development factors, however, the state experiences low growth performance. In India, for the last few decades, the state of Kerala is known to have one of the highest educated migration rate to the Gulf countries. As a result, the state is majorly driven by the remittances received. Kerala, geographically small but it is well connected with sea ports to expand its exports further globally. Therefore, with the help of Exploratory Data Analyses (EDA) and some econometrics the paper will pursue a comparative Analysis with two other Indian states of Gujarat and Tamil Nadu. The paper also attempts to recognize the possible policy initiatives and changes for Kerala which will help Kerala be on track for long-term economic growth.