Pondicherry Economy

Pondicherry is an Indian Union Territory, located about 150 km from Chennai, on the Coromandel Coast. Pondicherry economy is largely based on engineering, food processing, chemicals, metals, tourism, textiles, and information technology.

Agriculture and Fishing

Agriculture and economy are the mainstays of Pondicherry's economy. Almost half of the population in Pondicherry is dependent on agriculture for livelihood. Rice, pulses, sugarcane, coconuts, and cotton are some of the crops grown extensively in Pondicherry. Due its 50 km coastline, fishing is one the main sources of livelihood in Pondicherry, where there are nearly 30 fishing villages.

Industry

Pondicherry has nearly 5,500 small scale industries apart from 23 large scale and 80 medium scale industries. Taken together, these provide employment to more than 50,000 people. Some of the significant industries in Pondicherry are chemicals, textiles, light engineering, metals, and food processing. Special mention needs to be made of the tourism sector in Pondicherry. Due to its French past, coastal location, Aurobindo ashram, Auroville, cuisine, and resorts, Pondicherry attracts tourists by hordes! In 2006 alone, more than 300,000 tourists from all over the world visited Pondicherry. As a result, Pondicherry's investment opportunities are tremendous hotels, resorts, amusement parks, and spas, all are lucrative sectors. The Indian government supports investment in Pondicherry by increasing subsidies.

Sectors like eco-tourism, footwear, and marine products are some of the areas where an investment boost is expected in Pondicherry.

Facts and Figures

Pondicherry has a gross domestic product (GDP) of US$1.399 bn (2004-05). The per capita income in Pondicherry is US$766. The total value of all industrial units in Pondicherry is roughly Rs. 10,000 crore.

Upcoming Projects

Since Pondicherry enjoys several government incentives, plenty of projects have been planned for improving its socio-economic infrastructure. Some of them are:

• Chunnambar Water Front
• Laser show complex
• Film city
• Yacht Marina
• Lagoons and Oceanarium
• Handicraft bazaar
• Botanical garden

Corporate Giants

Several corporate entities such as IBM, Wipro, MRF, HP, HLL, and LG have set up shop in Pondicherry due to the infrastructural advantages it offers.

Political Economy of India

The development of India's economy was based on socialist-inspired policies after independence. It included state-ownership of various sectors, regulation and red tape which was known as 'Licence Raj' and protection from the world markets. The Political Economy of India has rapidly changed with the liberalization of the economy in the 1990s. It has now moved towards a market-based system and is the world's second fastest growing major economy after China. India recorded the highest GDP growth rate of 9% in 2007.

The growth rate has reached 7.5% in the late 2000s. The country is the world's twelth-largest economy by (PPP) purchasing power parity adjusted exchange rates. It is ranked 118th by PPP and 128th on per capital basis in the world. The most important priorities for India according to the World Bank are public sector reform, agricultural, removal of labor regulations, infrastructure, rural development and reforms in backward states.

The liberalization of India's economy was initiated by Prime Minister Rajiv Gandhi in the 1980's. In 1991, the International Monetary Fund (IMF) bailed out India through a $1.8 billion loan when it faced a crisis on defaulting on its loans. During this time, Prime Minister P. V. Narasimha Rao and his finance minister Manmohan Singh initiated new reforms.

The new reforms led to easier international trade and investment, privatization, deregulation, inflation-controlling measures and tax reforms. Liberalization has been the same irrespective of which party headed the government. But no party has yet thought of reforming labor laws and reducing agricultural subsidies which may anger powerful lobbies like trade unions and farmers.

Pre liberalization

From independence, economic policies included import substitution, protectionism, industrialization, business regulation, intervention of the state in labor and financial markets. There were Five-Year Plans similar to the central planning in the Soviet Union. In the mid-1950s, industries such as telecommunications, machine tools, steel, insurance, electrical plants were nationalized. Between 1947 and 1990, licenses, regulations which were accompanied with red tapism were required for setting up businesses. This was referred to as the Licence Raj.

The impact of these was that from 1950s to 1980s the economy of India stagnated around 3.5% and there was low annual growth rate. Industries like communications, steel and power were given only four or five licences. Therefore license owners made a huge business. There was a large public sector and losses were incurred by state-owned enterprises. Because of public sector monopoly there was poor infrastructure investment. With the License Raj system, there was wide spread corruption.

Rajiv Gandhi government (1984-1989)

Prime Minister Rajiv Gandhi initiated lighter reforms by reducing the License Raj and promoting the growth of software and telecommunications industries.

Narasimha Rao government (1991-1996)

With the assassination of Prime Minister Indira Gandhi in 1984 and her son Rajiv Gandhi in 1991, confidence for international investment in the economy was crushed. Since 1985, there was a balance of payments problem and by late 1990s the country faced a serious economic crisis.

The Narasimha Rao government started the liberalization process by abolishing the Licence Raj system which ended various monopolies, reforming capital markets, inviting foreign investment, reforming the trade regime and capital markets. Its goal was to reduce the fiscal deficit, privatize the public sector, and increase infrastructure investment. To open up foreign trade, there were trade reforms and foreign direct investment regulation.

There was reduction in industrial licensing and only 18 industries needed licensing. There was rationalized of industrial regulation. The Controller of Capital Issues was abolished in 1992 which regulated the number and prices of shares a company can issue. The Security Laws (Amendment) and SEBI Act of 1992 were introduced. The National Stock Exchange was started as a computer-based trading system from 1994 and by 1996 it became the largest exchange in the country. Tariffs were reduced, the rupee was made convertible, foreign direct investment was encouraged in priority sectors, India's equity markets were opened up in 1992 for foreign institutional investors. Inefficient loss-inducing government corporations were also privatized.

The political economy of India also included other later reforms such as forming Special Economic Zones, initiating the Golden Quadrilateral project for constructing a network of highways, enacting the Right to Information Act (2005), Right to Education Bill (2008) and Indo-US civilian nuclear agreement (2008). The impact of all these reforms is reflected in the amount of foreign investment which grew to $5.3 billion in 1995-96 from $132 million in 1991-92.

Orissa Economy

Orissa Economy is characterized by the dominance of the agricultural sector. Agriculture continues to be the mainstay of the Orissa Economy contributing about 28.13% to net state domestic product during 2001-2002. Agriculture alone provides direct and indirect employment to around 65% of the total workforce of Orissa as per 2001 provisional census. Nevertheless, the sector continues to be characterized by low productivity. Although the contribution of agriculture to state income has significantly declined, the percentage of work force engaged in agriculture has remained somewhat unchanged. This implies that there has been an overcrowding in agriculture without any perceptible increase in production. Therefore, agricultural growth holds the key to the overall development of the Orissa Economy by way of creating employment, generating income, providing raw materials to the industrial sector, and ensuring self-reliance in food production and food security to the deprived sections.

Orissa holds the promise of becoming one of India's major manufacturing hubs in the near future. The rate of growth in Orissa has been encouraging in comparison to the national average.

The Orissa Economy is witnessing unprecedented investment, both domestic and foreign. A whopping US$50 bn is expected to be invested in the state for building steel and aluminum producing capacity, power projects, ports, and other infrastructure. If things go as planned in Orissa, the state could emerge as one of the most significant FDI destinations in the world, rivaling Shenzhen in China

Orissa is also a major outsourcing destination for IT (Information Technology) and IT services firms. With the clogged highways of Hyderabad and Bangalore causing massive traffic jams, Orissa's still pristine Bhubaneshwar provides excellent opportunities for large IT firms to set up their shops.

Nagaland Economy

Nagaland Economy is mainly based on agriculture as more than 60% of the population is engaged in this sector. The Economy of Nagaland is also dependent on forestry, cottage industry, and tourism. The gross domestic product of the state Nagaland amounted to Rs. 6,500 million in 1990, in 1995 this figure amounted to Rs. 18,140 million, and in 2000 this figure stood at Rs. 36, 790 million.

The Economy in the state of Nagaland is dependent mainly on agriculture. The economy's remarkable feature is that there are no landless peasants in the state. The various kinds of crops cultivated in Nagaland are corn, pulses, oilseeds, fibers, sugarcane, potatoes, tobacco, millets, and rice. In spite of agriculture being the main occupation of the people, the state still has to import food items from other states. This has happened due to the fact that people followed unsustainable agricultural practices such as the Jhumming method which has led to the loss of fertility due to soil erosion. This has hampered the growth of the Economy in Nagaland.

The Economy of the state of Nagaland also depends on the forests as the state has a huge forest cover. The state has 33% forest area and they are divided into 3 group such as private forests, reserved forests, and protected forests. The various products from the forests are sold all over the country and this brings in revenue for the Economy of Nagaland. Nagaland Economy also gets its revenue from the state's cottage industries. The cottage industry in Nagaland manufactures pottery, weaving materials, and woodwork. All the products that are manufactured by the cottage industry are sold all over India and even exported to foreign countries. This has given a major boost to Nagaland Economy.

The Economy in the state of Nagaland depends on tourism to a certain extend only due to the fact that tourism is limited in the state due to its geographical isolation. Also the political instability in Nagaland has further hampered the growth of tourism in state leading to the slow down of the Economy of Nagaland.

Nagaland Economy has grown but not at the rate that has been expected. The main reasons for this slow growth has been that the state has a hilly terrain which makes it difficult for the people to communicate. The lack of eduction among the people and also the unstable political condition has hampered the growth of the Economy in Nagaland. The state government is making an attempt to boost the economy by developing the infrastructure and also by setting up new industries.

Nagaland Economy has grown over the years but not at the rate that has been expected. But now with the state government making efforts, the Economy of Nagaland is bound to rise in the near future.

Mizoram Economy

Mizoram Economy is based on agriculture, horticulture, forest products, industry, mineral, and tourism sectors. The gross domestic product of Mizoram amounted to Rs. 3,410 million in 1990, in 1995 this figure amounted to Rs. 9,370 million, and in 2000 this figure stood at Rs. 17,690 million. This shows that the Economy of Mizoram has grown at a very slow pace. 

The Economy in the state of Mizoram depends mainly on the agricultural sector as more than 70% of the people of the state are engaged in this sector. The climatic condition of the state is favorable for the growth of a wide variety of fauna and flora. The various kinds of crops that are grown in Mizoram are rice, cotton, oilseeds, pulses, maize, sesame, and sugarcane. The people follow the method of shifting cultivation which is also known as Jhumming method of cultivation. This sector has given a major boost to the Economy of Mizoram.

The Economy of the state of Mizoram also gets its revenue from the horticulture sector. The state has around 4.40 lakh hectares of land under horticulture cultivation. The main crops grown in the horticulture sector in the state of Mizoram includes pine- apple, orange, and banana. The horticulture sector has witnessed a sharp increase in recent years and this has given a major boost to the Economy in Mizoram. Mizoram Economy gets revenue from the forest products sector as the state has a huge forest cover. The various kinds of forest products manufactured are cane works, bamboo works, and wood works. The products manufactured are sold all over the country and even exported all over the world.

The Economy in the state of Mizoram depends for its revenue on the industrial sector. But the industrial sector is not that developed due to the lack of infrastructural development and also due to the lack of raw materials. The Economy of Mizoram gets very little revenue from the mineral sector for this sector has not been fully exploited. And this has hampered the growth of Mizoram Economy. The contribution of the tourism sector to the Economy of Mizoram is also very less due to the geographical isolation of the state.

In order to boost the Economy of the state of Mizoram, the state government has to develop the infrastructure of the state by constructing new roads, bridges, and drainage system. The state should also take measures to improve the power supply in the state. The Mizoram government should also set up new industries so that the economy of the state is able to grow.

Mizoram Economy has grown at a very slow pace. So that growth takes place in the economy of the state, the Mizoram government should make determined efforts.

Manipur Economy

Manipur Economy is based on agriculture, forest products, industries, mining, and tourism sectors. The gross domestic product of the state amounted to Rs. 8,210 million in 1990, this figure stood at Rs. 16,270 million in 1995, and in 2000 this figure increased to Rs. 29,200 million. The Economy of Manipur grew at the rate of 12.90% from 1980 to 1997. The agricultural sector has been growing at the rate of 10.69% per year and the manufacturing sector has been growing at the rate of 10.53% per year. 

The Economy in the state of Manipur depends mainly on the agricultural sector for it is the biggest livelihood source for the rural people. The various kinds of crops grown in Manipur are rice, maize, pulses, and wheat. The cultivation in the state is done using the Jhumming and terraced cultivation methods. Various kinds of fruits and vegetables such as pine- apple, orange, mangoes, lemons, carrot, ladies finger, cabbage, and pea are also grown in Manipur. The agricultural sector contributes a great deal of revenue to the Economy in Manipur.

The Economy of the state of Manipur also gets its revenue from the sector of forests products as the state has a huge forest cover. Various kinds of forest products are manufactured and sold all over the country and even exported to foreign countries. This has given a major boost to Manipur Economy. The Economy in the state of Manipur also depends to a certain extend on the industrial sector. Although this sector is not that well developed, the state government is making efforts to make the state more industrialized. In Manipur small industrial units has been established more than 7700 in number. Also industries related to cement, drugs and pharmaceuticals, plastic, and steel has been set up in Manipur. This has contributed to the growth of the Economy of Manipur.

The Economy in the state of Manipur also gets revenue from the mining sector. But the exploitation of this sector has not been extensive which has hampered the growth of the economy of the state. Manipur Economy gets very little revenue from the tourism sector. This is due to the fact that the geographical isolation of the state has hampered the growth of the tourism sector in Manipur. The major reasons behind the slow growth of the Economy of Manipur are that the infrastructure of the state is not well developed. The terrain of the state is also hilly which makes communication difficult.

Manipur Economy has showed slow growth. That it rises the state government has taken efforts by setting up more industries and also by developing the infrastructure. This sure is to boost the Economy in the state of Manipur.

Major Manufacturing Companies of India

    * Ashok Leyland

    * Bajaj Auto

    * TVS Motors

    * Hero Honda Motors Ltd.

    * Apollo Tyres

    * Asian Paints

    * BPL Group

    * Videocon Group

    * Larsen & Toubro

    * Jindal Steel 

    * Hindusthan Unilever Limited

    * Moser Baer

    * Godrej Group

    * Bombay Dyeing

    * Raymond Group

    * Amul

    * Dabur India Limited

    * Cadila Healthcare

    * Cipla

    * Ranbaxy 

Major Export Products of India

Exports have boosted the growth of Indian economy substantially and Indian exports in the current year has earned nearly US $ 125 billion and is expected to earn US $ 160 billion for the next fiscal year. The major export products of India include leather, medical appliances, equipments, textiles and so on.

Leather Goods among Major Export Products of India:

India has developed over the years to become a key player in the export of leather goods and accessories among the major export products of India.

India exports numerous leather products for daily use like leather wallets, belts, key holders, folders, pouches, leather toys, handbags etc. Gift items made of leather such as Leather notebooks, decorated leather journals, key rings, rugs are quite popular in foreign countries.

A large number of small scale, medium scale as well as large scale companies in India are engaged in the export of leather goods, the list of such companies include:

• Sharie International
• Islam International
• Indobest
• Falcon International
• Z.N.T International
• Balaji Impex Private Limited
• Paradise Noble Creations
• Asian adores
• The Lotus Handicrafts
• New Era Overseas

 

Medical Appliances among Major Export Products of India:

Indian medical appliances have made their mark in the foreign countries on account of superior quality and variety. Common medical appliances exported from India include absorbent gauze, sterile gloves, crepe bandages, gauze sponge, surgical face masks, surgical caps, surgical disposables. Export of specialized medical appliances have also gained importance among major export products of India and appliances such as baby incubator, automatic vertical autoclave, air ionisers, nelaton catheter, digital video colposcopes, digital imaging softwares.

A large number of small scale, medium scale as well as large scale companies in India are engaged in the export of medical appliances goods, the list of such companies include:

• Nidhi Meditech Systems
• Coral Marketing
• Narang Scientific Works Private Limited
• Relique Technologies
• Surya Surgical Industries
• Chatterjee Surgical
• United Surgical Industries
• B. L. Lifesciences Private Limited
• Paramount Surgical Emporium, Delhi
• Magnum Medicare Pvt. Ltd.

 

Textile goods among Major Export Products of India:

Textile goods have gained prominence among the export products of India, designer garments for ladies as well as gents manufactured by the big houses in India have created huge demand in the International garment industry. The popular ladies garment include knitted tops, embroidered salwar, sequin work blouses, sarongs, floral t-shirts, beaded garments, poplin embroidered kurta, viscose crape printed skirt.

A large number of small scale, medium scale as well as large scale companies in India are engaged in the export of textile goods, the list of such companies include:

• Kshethra Exports
• Mirza Fabric Private Limited
• Kanha Designs Pvt. Ltd.
• Knitco Fashionns
• Boom Buying Private Limited
• Revolution Exports
• Flying Fashions
• Subasri Textile
• Vipro Garments
• Kewal Impex
• Sudharshanaa Tex
• Macsam

 

Equipment’s among Major Export Products of India:

India caters to the need of varied equipment’s of the foreign countries, therefore the Indian equipment industry have grown in leaps and bounds and ranks high among the major export products of India like conveyor systems, hand pallet trucks, magnetic coolent cleaners, vibrating screens, EOT cranes, industrial magnetic conveyors, cantilever racks, steel rolling mill plants, hydraulic stackers, heavy duty pallet rack, pin pulveriser, agitator vessel, rotary vane feeders.

A large number of small scale, medium scale as well as large scale companies in India are engaged in the export of equipment’s, the list of such companies include:

• Orton Engineering Private Limited
• A.S. Precision Machines Pvt. Ltd.
• Dewas Techno Products P Ltd.
• Metal Storage Systems Private Limited
• Yagnam Pulverizer Private Limited
• Elegant Engineers
• Metro Engineering Industries
• Jai Gopal Engineering Works Private Limited 

Madhya Pradesh Economy

Madhya Pradesh Economy is based on agriculture, forest products, industries, mineral resources, and cottage industry sectors. The gross domestic product of the state amounted to Rs. 304,720 million in 1990, in 1995 this figure amounted to Rs. 478,410 million, and in 2000 this figure stood at Rs. 737,150 million.

The Economy of Madhya Pradesh depends mainly on the agricultural sector as more than 80% of the people of the state depend on this sector for their livelihood. The agricultural sector contributes around 46% to the state's economy. The various kinds of crops grown in the state of Madhya Pradesh are rice, pulses, wheat, oilseeds, grams, soybeans, and maize. The state contributes 20% to the total production of pulses in the country. In Madhya Pradesh, the total production of food grain was around 14.10 million metric tonne in 2004- 2005. This sector has given a major boost to the Economy in Madhya Pradesh.

The Economy in the state of Madhya Pradesh also gets its revenue from the forest products sector as the state has a forest cover of around 1.7 million hectares. The various kinds of forest products available in the state of Madhya Pradesh are teak wood, sal wood, and bamboos. These products are sold all over the country thus contributing to the Economy in Madhya Pradesh. The Economy of Madhya Pradesh gets its revenue from the industrial sector which contributes 26% to the state's economy. The main industries in the state are of telecommunications, information technology, automobiles, and electronics. Madhya Pradesh is the 2nd biggest cement producer in the country for it contributes 13% to the total cement production in India. This sector has contributed a great deal to the growth of the Economy in Madhya Pradesh.

Madhya Pradesh Economy also depends for its revenue on the mineral resources sector for the state has a rich storehouse of minerals. The various kinds of minerals found in the state are dolomite, limestone, copper ore, bauxite, coal. Madhya Pradesh produced 52683 thousand metric tonne of coal. The mineral sector has helped to boost the Economy of the state of Madhya Pradesh. The Economy of Madhya Pradesh gets its revenue from the cottage industry of the state. The various kinds of cottage industry products found in Madhya Pradesh are clay toys, leather toys, wool products, hand loom cloth, and chanderi sarees. These products are sold all over the country and even exported to foreign countries. The cottage industry sector has thus helped the Economy of Madhya Pradesh to grow.

Madhya Pradesh Economy has grown due to the contribution of many sectors. That the economy of the state continues to grow, the Madhya Pradesh government must give boost to the sectors that contribute to its growth.

Limitations of GDP per Capita in Measuring Growth

GDP or gross domestic product has always served as the most important factor in the calculation of the overall economic condition of the citizens, their standard of living and growth. However, proper analysis of the entire process has delineated certain limitations of GDP per Capita in Measuring Growth.

Calculation of GDP per Capita in Measuring Growth:

The process of calculation of GDP per capita in measuring growth requires the division of the current GDP figure of India with the total Indian population.

The result obtained helps in the determination of the total need of the Indian citizens that the GDP is required to gratify. The calculation of the total production, GDP includes public consumption accompanied with private consumption and the production of machinery that assist in further production of goods. The process is fraught with numerous limitations.

Territorial differences between earning and consumption:

The statement of GDP per capita is unable to delineate territorial differences in the output, the employment levels and the per head earnings of the Indian citizens. It takes into account the overall employment and earning of a region without differentiating the zones within that region which inhabit wealthy people from the zones that inhabits comparatively poor people on account of unemployment and economic deprivation.

Economic Development and its Consequence:

The growth ratio cited by GDP figures do not take into account the pollution level that increase due to the rise in the number of industries that adversely effect the standard of living of the people and has a negative impact on growth. GDP figures also fail to provide any information about the standard of goods and services available to the Indian citizens.

Parallel Economy or Black Marketing:

The GDP figure also fails to take into account the earnings gained through black marketing, which is flourishing at a faster pace and is thus described as the parallel economy. The parallel economy involves economic activity that leads to growth, which is not registered with the government organizations and hence is not reflected within the GDP calculation. This phenomenon ranks high among the limitations of GDP per Capita in measuring growth. GDP figures also do not include self-consumed commodities or exchange of goods that contributes to growth ratio.

Discrepancies in Earnings:

The statement of GDP hides the earnings distribution together with irregular circulation of wealth. The discrepancies in the distribution of wealth delineate only one side of the economy i.e. the growth in the economy through the GDP figure but the GDP figure fails to delineate the associated increase in relative poverty.

Income and Spending Ratio:

It is necessary to examine the ratio between income and spending in any economy of the country. The GDP figures do not provide any information about the fact that the growth is achieved through spending resources in the fulfillment of short-term demands of the citizens and not through spending resources for the fulfillment of the long-term improvements. Such a condition would no doubt delineate growth in the economy at present and at the same time over exhaustion of the available limited resources would restrict growth prospects in the years to come. Such a phenomena could be seen as the most significant limitation among all the limitations of GDP per Capita in measuring growth.

Thus, all these factors delineate the limitations of GDP per Capita in measuring growth and necessitate the emergence of new methods in the calculation of growth, in all the countries of the world.

Lakshadweep Economy

Lakshadweep Economy is a simple 1 but it is an open economy for there is a great development scope here. This is due to the fact that this part of India has wealth that has not yet been exploited. The Economy of Lakshadweep depends mainly on the agricultural, fishing, industrial, and tourism sectors. The gross domestic product of Lakshadweep amounted to US$ 60 million in 2004.

The Economy of the union territory of Lakshadweep depends for its revenue on the agricultural sector. The main products that are cultivated in Lakshadweep are coconut and coir. The major crop in the union territory is coconut with the cultivation of almost 26.5 million in 1994- 1995. The coconut production in the islands are increasing each year and the agricultural department exports it all over the country. The other agricultural products cultivated in the union territory are jaggery and vinegar. In Lakshadweep, the total area that is used for cultivation is around 27.50 sq km. The agricultural sector has contributed a great deal to the growth of the Economy in Lakshadweep.

The Economy in the union territory of Lakshadweep also depends for its revenue on the fishing sector for the productivity of the sea around the island is very high. Lakshadweep's fish availability per capita makes it stand 1st in the whole of India. The total production of fish in the island stood at 10000 MTs in 1996. In Lakshadweep, many processing and canning factories, mechanized boats for fishing, and yards for boat- building has been set up. This sector has helped the Economy of Lakshadweep to grow.

The Economy in Lakshadweep depends for its revenue on the industrial sector. The main industry in the islands is the extraction of coconut fiber and its conversion into fiber products. In the coir sector there are 7 government factories for coir fiber, 4 units for fiber curling, and 7 coir centers for production and demonstration. These units manufacture coir fiber, coir yarn, corridor mat, curled fiber, and matting. All these products are sold all over the country and thus this sector generates a lot of revenue for the Economy of Lakshadweep.

Lakshadweep Economy also gets its revenue from the tourism sector for the islands are fast emerging as a hot tourists destination. This has helped to bring in a lot of revenue for the Economy of Lakshadweep.

Lakshadweep Economy has been growing and there is still a lot of scope for development.

Kerala Economy

Kerala has witnessed tremendous development especially from the economic point of view. Although Kerala economy is primarily based on agriculture, the strong historical significance and natural attributes of the state have resulted in the presence of several industries in Kerala.

Located in the south-western tip of India, Kerala has the following to its credit:

 the highest literacy rate in India.

 Tourism has grown to be a front line industry government backing and private management.

 An efficient public transport system.

 Information Technology is becoming a key area of economic excellence

Role of agriculture in Kerala economy

The following are the features of the predominantly agrarian economy of Kerala:

 Kerala is a major producer of cash crops like coconuts, rubber, tea, coffee, pepper, cardamom, cashew, areca nut, nutmeg, ginger, cinnamon, and cloves.

 Coconuts bring the people their principal source of earning in agriculture. Nearly 70% of Indian output of coconuts is provided by Kerala. .

 Cardamom is one of the major exports of India and the bulk of Cardamom comes from Kerala.

Role of industry in Kerala economy Industries of Kerala economy are hugely based on agriculture and marine products. Some traditional industries are:

 Coir and coir products

 Marine products

 Handloom and handicrafts related to ivory, wood, bone carving, hand embroidery, cane works, coconut shell carving, and paddy straw picture making.

 Village industries manufacture Khadi, fiber, pottery, lime, paper, matches, gobar gas, cane, and bamboo.

The economy of Kerala, though small and agro-based, has a lot to look forward in future with the upcoming of IT and allied industries that are willing to exploit the yet-to-be tapped resources.

Karnataka Economy

The Karnataka Economy is one of the leading economies among all the states in the country in terms of economic development. It is the eighth largest state in terms of:

• Geographical area (1.92 lakh km)
• Population (5.27 crore - 2001 census)

The state's GDP at constant prices (2002-03) at Rs.72,399 crore, accounted for 5.5% of the national GDP. Karnataka Economy has witnessed a healthy 6.5% CARG in the GSDP for the ten year period 1994-2003, being the highest among the leading states in the country

Karnataka economy is largely service oriented and income from the sector contributes half the state's GDP with the agricultural and the industrial sector contributing to nearly 25% each. The major manufacturing oriented industries in the state include:

• Sugar
• Paper
• Cement

Among the service oriented sectors, Karnataka leads the Indian biotechnology industry. IT/ITeS is another thriving industry in the state, concentrated in and around Bangalore - the silicon valley of India.

The state has a strong infrastructure. There are 20 ports across Karnataka, the two major ones being the Mangalore port and the Karwar port. A number of national and state highways facilitate inter-city and town communication. Karnataka also has a strong railway and airport network. Karnataka is a preferred destination for investments. The Karnataka Udyog Mitra is a single contact point for all investors who wish to invest in the state.
The Monthly Review of the Karnataka Economy gives an updated and analytical view of the state's economy. The review encompasses detailed sectoral statistics and analysis. The sectors broadly covered in the review include:

• Agriculture allied sectors
• Infrastructure
• Industry
• Labour and employment
• Investments
• Corporate developments
• State public finance
• Banking
• Small savings
• Social sector