Kerala economy post liberalizationa study based on IT sector in Kerala

Abstract

Kerala is known for its high level of social development despite the disappointing performance of the economy. Kerala as a state has maintained a discreet economic trend vis-a-vis the National Economy. India had undergone substantial economic reforms after liberalization. Indian GDP has risen exponentially in the post-liberalization era. Most of the domestic product was contributed by the service sector. Software services or Information Technology has played substantial role in the growth story of the nation post liberalization. Kerala, on the other hand entered the reformation era only after the liquidity crisis of 2000. This period is analogous to the post-liberalization era of India. The Government of Kerala under the duress of Asian Development Bank took several policy measures to kick start the otherwise stagnant economy. One of the sectors that were given special focus as a part of the reform movement was Information Technology. The Government realizing the significance of the sector in improving the economic scenario of the nation, wanted to replicate the same in the state. This study tries to analyze the state of IT sector in Kerala and compares this with Karnataka. The policy initiatives and long-term strategy of the state for the sector is also discussed in this study.