Thiruvananthapuram, Jan 28 (NationPress) The economy of Kerala has demonstrated remarkable and widespread growth in 2024-25, with the Gross State Domestic Product (GSDP) in real terms increasing by 6.19 percent to Rs 6.85 lakh crore, compared to Rs 6.45 lakh crore in the preceding year, as reported in the State’s Economic Review 2025, presented in the Assembly on Wednesday.

This growth was driven by consistent expansion across the primary, secondary, and services sectors, along with enhanced capital expenditure and targeted policy initiatives.

At current prices, GSDP experienced a rise of 9.97 percent in 2024-25, while the Gross State Value Added (GSVA) increased by 10.08 percent.

Kerala remains one of the top ten states regarding per capita income, with the per capita GSDP at constant prices climbing to Rs 1.90 lakh, which is a 5.67 percent increase from the previous year, significantly above the national average.

The services sector has been the backbone of the economy, contributing 63.45 percent to GSVA, with notable growth in information technology, tourism, trade, transport, and communication.

The state’s IT ecosystem continued to thrive, bolstered by Technopark, Infopark, and Cyberpark, while the number of tech startups surged to 6,227 in 2024-25 from 4,681 the previous year.

The secondary sector contributed 28.49 percent of GSVA and grew by 7.87 percent in real terms.

Both construction and manufacturing sectors reported growth rates of 8.12 percent and 7.42 percent, respectively, supported by investments in infrastructure and enterprise promotion initiatives.

Under the 'Year of Enterprises 3.0' initiative, over 1.17 lakh new enterprises were established in 2024-25, attracting investments of nearly Rs 7,800 crore and creating jobs for about 2.49 lakh individuals, with women founding nearly one-third of these ventures.

The primary sector showed a significant rebound, growing by 2.36 percent compared to a modest 0.24 percent in 2023-24.

Both fishing and aquaculture recorded impressive growth of 10.55 percent, while agriculture and related activities increased by 2.14 percent.

Total fish production reached 9.28 lakh tonnes, solidifying Kerala’s status as the third-largest seafood exporting state by volume.

On the fiscal side, the state continued its consolidation efforts despite challenges to revenue.

The fiscal deficit was recorded at 3.86 percent of GSDP in 2024-25 and is expected to decrease to 3.16 percent in 2025-26.

Although total revenue receipts saw slight growth, transfers from the central government fell by more than six percent, highlighting Kerala’s growing reliance on its own revenue generation.

The Economic Review underscores that ongoing public investment, decentralized governance, and a robust social sector framework remain crucial to Kerala’s developmental path, even as the state faces fiscal constraints and external uncertainties.