Why people from Kerala is rich

Kerala’s relative prosperity is due to several key factors: high literacy rates, strong social welfare systems, and substantial remittances from Keralites working in the Gulf countries. Land reforms, a vibrant tourism industry, and a culture of savings have also contributed to financial stability. Additionally, progressive policies have led to high-quality healthcare and education, empowering people to pursue better economic opportunities both locally and abroad.

Jayden Joseph

10/2/20242 min read

a lush green hillside covered in lots of tea bushes
a lush green hillside covered in lots of tea bushes

Because Kerala has developed a reputation for a relatively high standard of living and a better quality of life compared to many other parts of India. While not everyone in Kerala is "rich," there are several reasons why the state has a comparatively higher income level and better social indicators:

1. High Remittance from Overseas Workers

- A large percentage of Keralites work abroad, particularly in the Gulf countries. Remittances sent home by these expatriate workers significantly boost Kerala's economy. In fact, Kerala receives one of the highest remittances in India, which translates into better income levels and increased spending power for families back home.

2. Focus on Education and Literacy

- Kerala boasts one of the highest literacy rates in India (about 96%). The state has long invested in quality education, resulting in a well-educated workforce. Higher education levels open up more employment opportunities, both domestically and internationally, particularly in sectors that offer higher wages.

3. Robust Healthcare and Social Welfare Systems

- Kerala's government has prioritized social welfare policies, leading to strong healthcare and social security systems. With a healthier population and access to social support, Keralites are better positioned to work productively and engage in income-generating activities.

4. Matriarchal Influences and Gender Equality

- Historically, Kerala's matrilineal traditions, particularly among certain communities, have contributed to relatively higher gender equality. Women in Kerala often have greater access to education and employment opportunities, which contributes to dual-income households and, in turn, higher family incomes.

5. Agriculture, Tourism, and Diverse Economy

- Kerala's economy is diverse, with contributions from agriculture (especially rubber, spices, and coconuts), tourism, and a growing information technology sector. Tourism, in particular, is a major contributor, as Kerala attracts both domestic and international tourists to its scenic backwaters, beaches, and hill stations.

6. Government Policies on Social Equality

- Kerala's government has historically implemented policies promoting land reforms, social equality, and poverty alleviation. These policies have helped reduce income disparities and improve the standard of living for a large section of the population.

7. Cooperative Sector

- Kerala has a strong cooperative movement that has helped improve the financial standing of many rural people. Cooperatives in sectors like agriculture, banking, and dairy support small businesses, reduce exploitation by middlemen, and ensure better returns on products and services.

8. Influence of Communal Harmony and Secularism

- Kerala has a high degree of communal harmony and secularism, leading to political stability and social cohesion, which indirectly contribute to economic stability. This environment fosters trust and allows businesses and communities to thrive without much disruption.

While not everyone in Kerala is wealthy, the state has created a conducive environment for economic growth, increased income levels, and a generally higher standard of living.