Service sector drives Kerala GDP

04 Jan '08

3 min read

Kerala has made rapid strides in its core competent areas namely, tourism services and also in social development. The contribution of the service sector to the state GDP is substantial (60%).

Employment Generation in this sector is about 67% and taxes revenue receipt is about 62%. However, it is found that there are many issues hampering the growth of the commercial sector.

The efforts of the Government to concentrate on manufacturing sectors and other related activities have not succeeded to the desired level in spite of many Govt initiatives.

Though manufacturing has a comparatively adverse effect on environment and ecology more encouragement seem to be given to the manufacturing sector.

The new Industrial policy 2007, recognizes the untapped potential of the commerce sector. Hence, Government proposes to study in detail issues, hampering the growth of commerce sector.

The Grand Kerala Shopping (GKS) festival is one of the major initiatives of the Govt to encourage trade and commerce. GKS also focuses on creating infrastructure development and policy initiatives to convert Kerala into a World class commercial hub.

Govt of Kerala has constituted a Committee to study the issues hampering the growth of Commercial sector in Kerala and to suggest practical solutions for the faster growth of the sector.

Smt. Lida Jacob IAS (Rtd), former Secretary (Social Welfare), Govt. of Kerala, will be the Chairperson of the committee. In the past she was Secretary in Govt Departments like PWD & Higher Education.

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