Kerala’s economy demonstrated robust and widespread growth in 2024-25, as per the State’s Economic Review. The Gross State Domestic Product (GSDP) increased by 6.19% to Rs 6.85 lakh crore from Rs 6.45 lakh crore in the previous year. This growth was driven by expansions in primary, secondary, and services sectors, coupled with enhanced capital spending and policy interventions.
At current prices, the GSDP surged by 9.97% in 2024-25, while the Gross State Value Added (GSVA) saw a growth of 10.08%. Kerala maintained its position among the top ten states in terms of per capita income, with per capita GSDP reaching Rs 1.90 lakh, marking a 5.67% increase from the previous year and surpassing the national average.
The services sector remained pivotal to the economy, contributing 63.45% of GSVA. Noteworthy growth was observed in information technology, tourism, trade, transport, and communication. Kerala’s IT landscape expanded with support from Technopark, Infopark, and Cyberpark, witnessing a significant rise in tech startups to 6,227 in 2024-25 from 4,681 the year before.
The secondary sector accounted for 28.49% of GSVA, registering a real growth of 7.87%. Construction and manufacturing sectors grew by 8.12% and 7.42%, respectively, aided by infrastructure investments and enterprise promotion initiatives. The ‘Year of Enterprises 3.0’ initiative led to the establishment of over 1.17 lakh new enterprises, attracting investments of nearly Rs 7,800 crore and creating employment for around 2.49 lakh individuals, with women spearheading about one-third of these ventures.
