SOCIO–ECONOMIC PROFILE AND CONSUMPTION PATTERN: CHANGING...

Chapter IIIChapter IIIChapter IIIChapter III

SOCIO–ECONOMIC PROFILE AND CONSUMPTION PATTERN:

CHANGING TRENDS IN KERALA

Contents

3.1 Socio-Economic Profile of Kerala

3.2 Change in Consumption Pattern

from Food to Non-Food Items

One of the best ways to judge the well-being of the people of a

nation is to examine the standards of health attained by ordinary people.

Healthy living condition and access to good quality health care for all

citizens are not only basic human rights but also essential pre-requisites for

social and economic development. Health is studied as a function of

medical care, income, education, age, sex, race marital status,

environmental pollution and also certain personal behaviour like smoking

habits, exercise and the like (Rout and Nayak 2007).

Kerala has received international acclaim for its conscious policy

intervention for high levels of human development. A large scale migration

that began in the early 1970’s raised the economy into a higher orbit of

economic and social development. Kerala has been witnessing many

changes in its social, economic and health scenario since the turn of 1990’s.

Changing trends in the social outlook, economic status, consumption style

etc show that the state is heading towards a different era. Consumerism and

issues related to new lifestyle present a vivid picture of modern Kerala. A

CCCChapter IIhapter IIhapter IIhapter IIIIII –––– SocioSocioSocioSocio----Economic Profile and Consumption Economic Profile and Consumption Economic Profile and Consumption Economic Profile and Consumption Pattern: Changing Trends in KeralaPattern: Changing Trends in KeralaPattern: Changing Trends in KeralaPattern: Changing Trends in Kerala

LIFESTYLE DISEASES IN KERALA: AN ANALYSIS OF SOCIO-ECONOMIC STATUS, CONSUMPTION

PATTERN AND ADOLESCENT OBESITY IN KOTTAYAM DISTRICT 59

close look at the development journey of the state reveals certain interesting

as well as disturbing trends that need special attention.

3:1 Socio-Economic Profile of Kerala

Kerala stands unique in the era of globalisation. The socio-

economic scenario of Kerala constituted by net state domestic product, per

capita state income, demographic trends, structural changes, employment

scenario, family structure, food culture, leisure time activities etc have

changed drastically with the advent of globalisation. There is a leap in the

economic growth and development of Kerala since 1991.

The health status of a country is related to and determined by

numerous factors such as per capita income, way of life, marital status,

housing, sanitation, water supply, infrastructure, social organization,

structure of the economy, nutrition, education, health services provided by

the government, political and administrative setup, geography, climate and

religious belief (Rao, 2004).

There are five major factors which influenced the economic

progress of Kerala (Prakash, 2006). They are the impact of economic

reforms implemented by the government of Kerala, state policies and

public expenditure, considerable progress in population control, increase in

investment and migration and flow of remittances.

3.1.1 Net State Domestic Product (NSDP)

The analysis of performance of the state in terms of Net State

Domestic Product indicates that Kerala belongs to the group of seven states

with accelerated growth in the 90’s (Pushpangadan, 2006). This notable

feature of uptrend in its growth process is shown in Table 3.1.




Table 3.1

Trends in NSDP of Kerala (At constant price)

(1993-94, 1999-2000 and 2004-2005 prices)

Year NSDP (Rs. in crores)

1993-94 23851.07

94-95 25907.92

95-96 26947.47

96-97 28026.45

97-98 28633.15

98-99 30643.66

99-2000 60643.34

2000-01 62522.68

01-02 65594.02

02-03 70211.17

03-04 74739.22

04-05 104776.05

05-06 115499.86

06-07 124624.66

07-08 135747.46

08-09 144093.92

09-10(P) 157078.22 (P)

10-11(Q) 171897.31 (Q) Source: Economic Review (various years), Kerala State Planning Board, Thiruvananthapuram

P-Provisional data Q-Quick estimate

On the eve of launching the 8th five year plan in 1992-93, there was

a virtual stagnation in the state’s economy. The situation has shown vast

improvements in the subsequent years which is shown in table 3.1.

3.1.2 Sectoral Distribution

The contribution of primary, secondary and tertiary sector to GDP

is referred to as the structure of the economy. As an economy develops,

there is a continuous shift of economic activity from primary sector to other

sectors. This trend is clearly seen in Kerala economy too. The structural

change occurred in Kerala during 1960-61 and 2010-11 are shown in




Figure 3.1 which depicts the sectoral distribution of Gross State Domestic

Product (GSDP) of the state.

Figure 3.1

Sectoral Distribution of GSDP-Kerala

During 1960, as shown by Figure 3.4, the contributions from

primary, secondary and tertiary sectors to GSDP were 56% 15% and 29%

respectively. This structure of the economy has changed drastically in

favour of secondary and tertiary sectors during 2011. The contributions

from primary, secondary and tertiary sectors to GSDP constitute 11%, 20%

and 69% respectively during 2011. While analysing the sectoral

distribution of state income, it is seen that the contribution from primary

sector is decreasing. But secondary sector keeps almost the same level of

about 22%. Tertiary sector witnessed a boom which also generated large

employment opportunities in that sector.

3.1.3 Per Capita Income (PCI)

The growth of state per capita income is another important indicator

for measuring the growth of an economy. During 1992 – 93, the per capita

income of Kerala was Rs.1932 which was lower than that of India

(Rs.2216) with 1980-81 prices. The per capita income of Kerala has shown

1 9 6 0

P rim a ry

5 6%

S e c o n d

a ry

1 5 %

Te rt ia ry

2 9 %

P rim a ry S e c o n d a ry T e rt ia ry

2011

Primary

11%

Secondary

20%

Tertiary

69%

Primary Secondary Tertiary

Economic Review (2011), Kerala State planning Board, Thiruvananthapuram, p.30.




vast improvements since 1993-94. The per capita income growth of the

state is above the all India average (Ahluwalia, 2002). Table 3.2 and Figure

3.2 compare PCI of India and Kerala.

Table 3.2

The growth of State Per Capita Income and Per Capita National

Income (1980-81, 1993-94 and 1999-2000, 2004-05 prices)

Year PCI of Kerala

(Rs)

Per. Capita National

Income (Rs)

1990-91 1815 2213

1991-92 1826 2167

1992-93 1932 2216

1993-94 7788 7698

1994-95 8417 8068.8

1995-96 8728 8478.9

1996-97 9039 8987

1997-98 9381 9241.6

1998-99 9807 9647

1999-2000 19294 15839

2000-01 19724 16133

01-02 20519 16762

02-03 21699 17075

03-04 22848 18517

04-05 36278 24143

05-06 39601 26015

06-07 42382 28067

07-08 45733 30322

08-09 47900 31754

09-10(P) 51791 33843

10-11(Q) 56107 35993 Source: Economic Review (various years), Kerala State Planning Board, Thiruvananthapuram

P-Provisional data Q-Quick estimate

Figure 3.2 compares the growth in PCI in India and Kerala and

highlights the steady growth in Kerala's PCI after 1993-1994.




Figure 3.2

Growth Rate of Per Capita Income: Kerala and India

16133

56107

39601

19724

8728

1815

35993

26015

8478.9

2213

0

10000

20000

30000

40000

50000

60000

70000

80000

1990-91 1995-96 2000-01 2005-06 2010-11

PCI of Kerala Percapital National Income

Source: Economic Review (various Years), State Planning Board, Thiruvananthapuram

Till 1993-94 the PCI of the state was lower than per capita national

income. The per capita state income increased from 39601 in 2005-06 to

56107 in 2010-11, registering a growth rate of 41.68%. The per capita

national income increased by 38.35% during the same period. During 2010-

11 the growth rate was 8.33% in Kerala. There are many factors like

economic reforms, IT boom, migration and flow of remittances that

influenced the economic progress of Kerala since 1991.




3.1.4 Demographic Transition

Kerala has undergone a demographic transition since 1960.Since

1966 there has been a downward trend in the growth rate of population and

this trend is continuing steadily which is represented in Table 3.3 and

Figure 3.3. At present the growth rate of population is the lowest

experienced by the state.

Table 3.3

Population Size and Decadal Growth Rate in Kerala & India,

1961 – 2011

Census year Population(Million) Decadal growth rate (%)

Kerala India Kerala India

1961 16.90 439.23 24.76 21.64

1971 21.35 548.16 26.69 24.80

1981 25.45 683.33 19.24 24.66

1991 29.09 843.39 14.32 23.86

2001 31.84 1027.02 9.42 21.34

2011 33.39 1210.20 4.86 17.64

Source: Census of India, 2011




Figure 3.3

Population Growth Rate: Kerala & India

0

5

10

15

20

25

30

Gro

wth

Rate

(Perc

enta

ge)

1 2 3 4 5 6

Census Years

Kerala India

Sources: Census of India, 2011

Kerala registered a growth rate of above 2% during 1941-

1971(Economic Review, various years). The same pattern was true for

India for the later period of 1961-1991. Until 1971, Kerala’s growth rate

remained always higher than that of India’s. India overtook Kerala during

1971-81. Over the last century, Kerala’s population doubled itself 5 times

(it increased from 6 million in 1901 to 32 million in 2001) whereas India’s

population grew only by slightly more than three times during the last

century. It was 238 million in 1901 which increased to 1027 million in

1961 1971 2011 1981 1991 2001




2001(Census of India, various years). However, the growth rate of

population during the past decade 2001-2011 was a mere 48%, the lowest

rate experienced since the formation of the state of Kerala. The growth rate

during 2001-2011 in Kerala was the lowest in India.

3.1.5 Sex Ratio in Kerala & India (1951-2011)

Kerala, being the only state which has a population of females in

excess of the population of males. The rate has 1084 females per 1000

males in 2011.

Table 3.4

Sex Ratio in Kerala and India, 1951 – 2011

Census year Sex ratio

Kerala India

1951 1028 946

1961 1022 941

1971 1016 930

1981 1032 934

1991 1036 927

2001 1058 933

2011 1084 940


Kerala is the only state in the country in which the excess of female

has been growing during the entire 20th century. Since the beginning of 20

th

century, Kerala has shown a situation of 4 excess females per 1000 males

in 1901 to 84 excess of females for 1000 males in 2011(Census of India,

various years).




3.1.6 Density of Population

In terms of density of population Kerala is one among the top, with

859 per sq. km in 2011. Figure 3.4 reveals the density of population in

Kerala and in India.

Figure 3.4

Density of Population Kerala and India

349

117

435

142

549

177

655

216

749

267

819

324

859

382

0

100

200

300

400

500

600

700

800

900

1951 1961 1971 1981 1991 2001 2011

Density of population Kerala Density of population India


Among the major states, Kerala had the highest density till 1981,

but in 1991 West Bengal took the lead. Even in 2011, the density of

population in Kerala was higher than that of all India level.

3.1.7 Age Structure of Kerala

Table 3.5 describes the changing age structure of population of Kerala

from 1961 to 2051




Table 3.5

Demographic Scenario of Kerala Past, Present and Future (In million)

Year Below 15 15-29 30-44 45-59 60 &

above

1961 7.205 4.158 2.837 1.714 .986

1971 8.595 5.715 3.481 2.228 1.328

1981 8.901 7.716 4.116 2.809 1.909

1991 8.617 8.793 5.645 3.374 2.567

2001 7.243 8.761 6.940 4.498 3.340

2011 6.862 8.251 8.149 6.082 4.120

2021 6.296 7.514 8.558 7.308 5.710

2031 5.567 7.260 7.706 8.081 7.876

2041 5.147 6.639 7.318 7.603 9.778

2051 4.671 6.018 6.817 6.948 10.781

Source: Zachariah, K.C (2008). “A Century of Developments in Kerala Demography”, in

B.A. Prakash and V.R Prabhakaran (eds.), Kerala's Development Issues in the New

Millennium, Serials Publications, New Delhi, pp.44-46.

Fifty years ago, Kerala had an elderly population (above 60) of just

.986 million. By 2001 their number had increased to 3.340 million. By

2051 their number is almost sure to reach over 10 million, about 3.2 times

the number in 2001.

Another emerging feature is that in 2026, Kerala will have 6.3

million persons belonging to the ‘young old’ group (60-74 years) and

another 2.0 million in the ‘old old’ group (75 years and above). Put in other

words: the elderly population of Kerala in 2026 will be equal to the total

male population of Kerala in 1961 (Rajan, 1989)




The worst affected group is the children below the age of 15. From

8.617 million in 1991 their number declined to 7.243 million in 2001 and it

would decline consistently to about 4.671 million in 2051(Kerala

Development Report, 2008b).

3.1.8 Ageing Population

The ageing scenario of Kerala is unique among the states of India.

Although the increasing proportion of older persons is a worldwide and

also a national phenomenon, the process is happening much faster in

Kerala. One of the greatest challenges of Kerala in 21st century would be in

managing the ever increasing number of elderly population who are

progressively getting older.

Kerala had 10.5 per cent of its population in the age group of 60

years and above as against only 7.5 per cent in all – India. Given the

advanced stage in Kerala’s demographic transition, the share of the aged in

the population will continue to increase through the next couple of decades.

Caring the elderly people will therefore emerge as a new challenge in the

area of social security and welfare in the coming decades (Kannan, 2006).

Table 3.6 shows the size and percentage of elderly people in Kerala

and India.




Table 3.6

The Size and Percentage of the Elderly Aged 60 and above:

Kerala and India (Lakh)

Year Kerala India

Size Percentage Size Percentage

1961 10 5.9 246 5.6

1971 13 6.2 323 5.9

1981 19 7.5 444 6.5

1991 26 8.8 575 6.8

2001 33 10.5 770 7.5


The ageing scenario of Kerala is much more important than any

other state in India. According to the first census (1961), the number of

elderly persons aged 60 and above was only 10 lakh which increased to 33

lakh in 2001 (a 230% increases). However, in all over India, the number of

elderly persons aged 60 and above was 246 lakh in 1961 which increased to

770 lakh in 2001 (a 213% increase) in India. Though Kerala’s population

is growing at a less than one per cent, the growth of elderly during

1991 – 2001 is much higher and the trend is likely to continue for the next

few decades (Kurian, 2008).

3.1.9 Employment and Unemployment Situation in Kerala

Kerala is one among the few states in India in which work

participation rates have declined. Structural change in employment caused

by decline or disappearance of several labour intensive activities such as

rice cultivation, traditional cottage industries etc have led to decline in the




work participation rates, particularly of women. Work participation rates of

men and women in Kerala were 50.6 per cent and 15.3 per cent respectively

in 2001. Wide significant differences do not exist in work participation

rates as between urban and rural areas. It was the agriculture sector that was

the main source of rural employment while it was the tertiary sector that

created the most employment opportunities in urban areas (Development

Report, 2008). Employment structure of Kerala in the organized and

unorganized sectors is given in Table 3.7.

Table 3.7

Employment in Organised (Public & Private) Sector-Kerala as on

December 2010 (in Lakh)

Particulars Kerala

Public Sector

Male 4.18

Female 1.9

Total 6.08

Private Sector

Male 2.43

Female 2.49

Total 4.92

Total

Male 6.61

Female 4.39

Total 11

Source: Directorate of Employment, 2011 Govt. of Kerala, Thiruvananthapuram

As on December 2010 the organized sector (Public and Private)

employs 11 lakhs people in Kerala. There are 9462 private establishments

and 11459 government institutions in the state (Economic Review, 2010).




From the above table it is clear that in 2010, the share of female

employees in the organised sector in Kerala is 39.9 per cent. In the private

sector, share of female workers is 50.6 per cent. The private sector

accounts for 44.72 per cent of the employment in the organised sector in

Kerala.

Table 3.8 shows the distribution of employment in public sector in Kerala.

Table 3.8

Employment in Public Sector in Kerala ( In Lakhs)

Year

(at the end of

December)

Central

Govt.

State

Govt.

Quasi

Govt.

Local

Bodies Total

2001 0.97 2.94 2.28 0.26 6.45

2002 0.83 2.89 2.39 0.27 6.38

2003 0.81 2.72 2.39 0.27 6.19

2004 0.78 2.8 2.31 0.26 6.15

2005 0.77 2.78 2.29 0.25 6.09

2006 0.77 2.77 2.27 0.26 6.07

2007 0.76 2.76 2.32 0.26 6.1

2008 0.63 2.66 2.51 0.27 6.07

2009 0.62 2.68 2.6 0.27 6.17

2010 0.6 2.64 2.58 0.26 6.08

2011 0.61 2.65 2.6 0.26 6.12

Source: Directorate of employment, 2011, Govt.of Kerala, Thirivananthapuram.

The total employment in the public sector increased from 6.07 lakh

in 2008 to 6.12 lakh in December 2011. The branch-wise analysis shows

that employment opportunities in central government and state government

show a decreasing trend and local bodies show a positive trend. Figure 3.5

depicts the distribution of employment in the public sector in March 2011.




Figure 3.5

Distribution of Employment in the Public Sector (March 2011)

Central Quasi

15%

State Quasi

28%

Local Bodies

4%

State Government

43%

Central Government

10%

Local Bodies Central Government State Government Central Quasi State Quasi

Source: Directorate of Employment, 2011, Govt.of Kerala, Thiruvananthapuram.

The overall sector-wise employment in Kerala is given in Table 3.9.

Table 3.9

Sector-wise Employment in Public and Private

Establishments in Kerala

Sector Percentage of persons employed

2005 2006 2007 2008 2009 2010

Primary 8 9 8 8 7 7

Secondary 25 22 24 25 25 25

Tertiary 67 69 68 67 68 68

Source: Directorate of Employment, 2010, Govt. of Kerala, Thiruvananthapuram.

Analysis of the sector-wise growth of employment in public and

private sector in Kerala in March 2010 reveals that the highest employment




is in the tertiary sector (68%) followed by secondary sector (25%) and the

lowest employment is in primary sector (7%).

In Kerala from 1970 onwards there has been a rapid rise in the

number of women seeking wage employment. Though the supply of work

seekers increased, the demand for them did not increase proportionally. As

a consequence, there was an alarming increase in unemployment rate from

time to time. Unemployment increased in Kerala due to several factors such

as low rate of economic growth and the slow growth of organized sector.

The unemployment rate is increasing in both rural and urban areas. An

important feature of Kerala economy is the out-migration of labour force

particularly to Gulf regions and inflow of huge remittances into the state.

Huge out migration is because of lack of employment opportunities within

the state.

The unemployment rate according to Current Daily Status approach

(CDS) based on 2009-2010 survey for Kerala is given below in Table 3.10.

Table 3.10

Unemployment Rate (per 1000) for all Persons According to Current

Daily Status approach (Based on 2009-2010 survey), Kerala

Sector Male Female Male + Female

Rural 129 274 173

Urban 121 213 148

Rural+Urban 127 259 167

Source: Key Indicators of employment and unemployment in India, 2011,

National Sample Survey Organization.

Educated unemployment is the core of the unemployment problem

in Kerala. Unemployment rates were higher among SSLC and HSE




certificate holders than among the professionally qualified, the post

graduates and the higher degree holders.(Kerala Development Report,

2008a).

2009-2010 survey reveals that among the Indian states, Kerala

(16.7%) has highest unemployment rate (UR) based on Current Daily

Status Approach (CDS): followed by Nagaland (15%). In Kerala UR

among male was 12.7% and that of female 25.9% based on CDS approach.

In rural area the UR is estimated at 17.3% (male-12.9% and female-

27.4%); where as in urban area it is estimated that 14.8% (male-12.1% and

female- 21.3%). (Economic review, 2011).

The structural change in terms of employment and its consequences

can be summarized as follows.

1. The share of employment in tertiary sector has gone up, but the

structural change has not led to a reduction in its share in the

primary sector.

2. There has not been much increase in the share of employment in the

secondary sector.

3. Employment in Kerala is still informal in nature comprising mostly

self-employment and casual employment.

4. Economic growth has failed to generate more employment

opportunities in the organised public and private sectors.

5. There has been a substantial increase in the incidence of

unemployment especially educated unemployment.

6. The employed youth were forced to migrate to other parts of India

and abroad since 1970s.




7. The unprecedented rate of emigration and consequent inflow of

large volume of remittances has significant influence on the labour

market, construction, saving, investment and income distribution.

3.1.10 Economic Infrastructure

The basic facilities like energy, transportation and communication

provide supportive services in the main areas of industrial and agricultural

production, domestic and foreign trade and commerce. These facilities have

a direct impact on the working of the system which increase the

productivity of the factors production and improve the quality of life of the

people.

Economic infrastructure has been playing a pivotal role in the

development of Kerala economy since last five decades.

3.1.10.1 Energy

Energy is a basic requirement for every walks of our life. It is also

basic human need and is a critical infrastructure on which the socio

economic development of a country relies. In Kerala, Kerala State

Electricity Board (KSEB) is the sole organization to supply the power to

different categories of the consumers. Increasing the capacity of hydel

generation by harnessing the untapped potential in the state without many

disturbances to the forest and its bio-reservoirs is the key strategy adopted

by the KSEB.




Table 3.11

Energy Source in Kerala as on 31.03.2011

Sl. No. Source of energy Installed capacity (MW)

1 Hydel : KSEB 1997.80

2 Thermal : KSEB 234.60

3 Wind : KSEB 2.03

4 NTPC 359.58

5 Thermal : IPP 188.93

6 Hydel : Captive 33

7 Hydel : IPP 10

8 Wind : IPP 31.65

Total 2857.59

Source: Economic Review (2011), Kerala State Planning Board, Thiruvananthapuram, P. 252

Table 3.11 depicts energy sources and installed capacity in Kerala.

Power System in Kerala consisted of hydel, thermal and wind sources.

Hydel energy is the most reliable and dependable source in Kerala. Of the

total installed capacity of 2857.59 MW during 2011, the lion's share of

2040.80 MW of installed capacity comes from 24 hydel stations; 783.11

MW is from the thermal projects including NTPC at Kayamkulam which is

Kerala's dedicated thermal station. Kanjikode wind farm, Palakkad has an

installed capacity of 2.03 MW. Wind energy from IPP is 31.65 MW.

Capacity addition during 2010-2011 was only 111.40 (4%).

Some of the challenges that Kerala’s power sector faces today are

1. Kerala’s installed capacity to generate electricity is not

sufficient to feed an annual economic growth of 7 per cent.




2. High transmission and distribution loss

3. Inadequate private sector power generation.

4. High power tariffs and prolonged power cuts in different parts

of the state.

5. Thermal power sector faces shortage of raw materials.

3.1.10.2 Transportation

Transportation is an integral part of the economic and social

development of a nation. Kerala can be proud of the fact that it has

developed a good road net work compared to other states in India.

Transport infrastructure of Kerala consists of 1.62 lakh km of road, 1148

km of railways, 1687 km of inland waterways and 111 statute mile of

airways and 18 ports. However, the development of road, railway and air

transport is less than proportionate to the increase in the number of motor

vehicles. The number of motor vehicles having valid registration as on

31-03-2010 is 5397652. About 1276 vehicles are newly added to vehicle

population every day out of which 870 are two wheelers. Density of

vehicle is high in Kerala. It is 10358 vehicles per sq. km. or 12641 per

100000 people. The transport system in Kerala is consumer oriented and

passenger movement accounts for major portion of transportation.

3.1.10.3 Telecommunication

Telecommunication is one of the fastest growing sectors of Kerala

economy and has immense potential of growth in future.

The state has telephone density of 191 per 1000 population with

BSNL connections. The number of telephone connections is 60.96 lakhs

(Land line – 36.03, WLL – 4.33 and mobile 20.60). Kerala telecom circle




has the 2nd largest telecom net work out of 24 territorial circles in the

country. The growth of telephone connections in Kerala has been steadily

increasing particularly since 2003. Both rural and urban areas are targeted

for telephone connections.

The revenue from the telecommunications sector is one of the

lowest in Kerala among the states due to the fact that a major portion of

telephone connections in the state is in rural areas in which tariffs are

lower. New method of communications such as internet, and integrated

digital services has been gaining importance in recent years.

The major challenge for Kerala is the provision of cost-effective

connectivity to rural areas and accommodating its rapidly rising tariff

growth. The telecommunication infrastructure and services should become

capable of playing a key role in balancing the developments through e-

education, tele-medicine and e-governance.

3.1.10.4 Postal Service

Kerala postal circle provides postal needs of the whole Kerala state,

Union Territory of Lakshadeep and Mahe, a part of Union Territory of

Pondicherry. There are 5067 post offices functioning in the state during

2010-2011.

Besides the traditional postal services, money orders, value payable

services, post office saving Bank, Postal Life Insurance etc are efficiently

done by department of posts. It also does agency services like international

Money Transfer Services (MTS), sale of various application forms,

passport services etc with its vast network. In MTS, Kerala Postal Circle

ranks second position in the country. With effect from 01.09.2007, speed




post booking facility has been extended to all post offices of this postal

circle, which is first time in the country.

3.1.11 Education

Education is a good indicator of social position and often seen as

the easier way of measuring socio-economic status because it precedes

other indicators such as income or occupational based social position.

Kerala’s stupendous achievements in the field of social development and

high quality of living are mainly attributed to the educational advancement

that the state has made over several years. The educational structure of

Kerala has passed through several changes during the past centuries.

Massive spread of education by Christian community created a conducive

climate for rapid social changes in all the communities (Mahadevan and

Sumangala, 1987).

Kerala has successfully solved the first generation problems of

illiteracy and inadequate school enrolment. Literacy is a basic step towards

education, which is a process of life learning and entry point to the world of

communication and information. A comparison of Kerala with India in the

matter of literacy rate is shown in Table 3.12 and Figure 3.6

Table 3.12

Literacy Rate in Kerala & India (Percentage)

Year Kerala India

1951 47.18 18.33

1961 55.08 28.3

1971 69.75 34.45

1981 78.85 43.57

1991 89.81 52.21

2001 90.86 64.84

2011 93.91 74.04 Source : Census of India (Various years)




Figure 3.6

Literacy Rate: Kerala & India (Percentage)

93.9190.8689.81

78.85

69.75

55.08

47.18

74.04

64.84

52.51

43.57

18.33

28.3

34.45

0

10

20

30

40

50

60

70

80

90

100

1951 1961 1971 1981 1991 2001 2011

Kerala India

Source: Economic review, various years

Since 1951 Kerala is at the top position among the states of India in

terms of literacy.

School education is widespread between sexes, across regions and

among all social groups. Compulsory and free school education, basic

education, direct payment of salaries of private school teachers, reduction

of inter community and inter regional differences in school access,

promotion of female education, school feeding programme, promotion

policies and travel concessions to students have been the policy measures

through which the state achieved high literacy rate as early as by 1991.




The average size of schools is larger in Kerala than in the rest of the

country at all the stages of school. The student class room and student

teacher ratios are more favorable in Kerala than in many of the other states.

The quality of education in Kerala is higher in terms of teacher

qualification, drop out, grade repetition rates and examination results than

in several other states.

Kerala had remained a relatively under-developed region among the

states of India in respect of higher education till the beginning of the

1990’s. Till 1990 conventional degree courses were very popular. But now

they are no longer very popular. The reason for this phenomenon could be

the amazing proliferation of Engineering and Medical colleges and the

popularity enjoyed by non-intellectual disciplines like Commerce,

Management Studies and Computer Applications which appear to attract a

large number of top scoring students who would otherwise have joined for

pure Arts/Science streams. The progress made by the state during the past

decade and a half has been phenomenal. The growth was marked by the

opening up of self-financing institutions in the areas of Engineering,

Information Technology and also in Medicine.

Arts and science colleges dominate the higher education sector in

Kerala. 342 arts and science colleges of the state distributed under various

universities is shown in Table 3.13.




Table 3.13

University-wise Arts and Science College, 2011

SL.

No. Name of University Government Aided Unaided

1 Kerala 9 37 15

2 Calicut 17 45 58

3 Mahatma Gandhi 7 56 54

4 Kannur 6 12 26

Total 39 150 153 Source: Directorate of Collegiate Education, Thiruvananthapuram, 2011

Apart from the government and aided colleges, unaided arts and

science colleges are also functioning in the state. A total of 153 unaided

colleges are affiliated to these universities.

The number of engineering colleges has increased manifold in

recent years. The number of engineering colleges at the end of the 9th five

year plan has almost doubled now.

Table 3.14

University- wise Number of Engineering Colleges in Kerala – 2011

SL.No. Name of University Number of College

1 University of Kerala 39

2 Mahatma Gandhi 40

3 Calicut 33

4 Kannur 8

5 Cochin University of Science

And Technology 20

6 Agricultural University 2

Total 142

Source: Directorate of Technical education, Govt. of Kerala, 2011.




At present there are 142 engineering colleges in the state with a

sanctioned intake of 45147 in 2011. Out of 142 colleges, 11 are

government colleges, 3 in the private aided sector and 128 are self

financing.

Medical education in the government sector in the state is imparted

through 5 medical colleges 3 dental colleges and five nursing colleges.

During 2011, Government has allotted additional fund to start four new

Medical Colleges at Idukki, Kasargode, Pathanamthitta and Malappuram.

The Directorate of Ayurveda Medical Education has now 16 institutions: 3

are in Government sector, 2 in private sector and 11 in self financing sector.

The Homoeo Medical Education Department is also formed to

promote education, research and training in the field of homeopathy. Now

there are 6 homoeo colleges in Kerala: 1 in Government sector 3 is in

Government aided sector and one in unaided sector.

3.1.12 Types of Dwelling

One major factor which is a good measure of standard of living and

has a positive influence on health status is the housing pattern of the

people. Kerala has witnessed high growth in housing investment and

construction during the last 30 years. The average housing in Kerala is far

ahead of the rest of India. While at the all India level, 51.8 per cent

households live in permanent and 30 percent in semi- permanent houses,

the corresponding proportion in Kerala is 68 and 21.6 per cent respectively

(Census of India, 2011). The Census 2001 indicates that on an average, a

house in Kerala had three rooms while the all India average is only two.




Table 3.15

Types of Dwelling Kerala & India 2006

Type of house Kerala India

Rural Urban Rural Urban

Pucca 73% 84.7% 48% 84.2%

Kutcha 7.2% 2.4% 18% 4.3%

Source: Economic review (various years), Govt. of Kerala

In Kerala, size and condition of dwelling units are good in rural as

well as urban areas when compared to all India and neighboring states. In

Kerala 73 per cent of rural population and 84.7 per cent of urban population

are living in pucca houses while the corresponding figures at all India level

are 48 per cent and 84.2 per cent respectively. The percentage of rural and

urban population living in kutcha houses in Kerala are 7.2% and 2.4%

respectively.

3.1.13 Family Structure

Another aspect of social condition is the family structure. The joint

family system based on marumakkathayam* used to be the pattern among

several communities in Kerala. Under the system, the property was jointly

owned by the tharavad and was impartibly and inalienable except by

common consent. It was managed by Karnavar, the senior male member. A

protracted legal battle and agitation which started during the last decades of

19th century finally resulted in the passage of legislation permitting division

of tharavad property. With this the process of family nucleation was started.

Today, among almost all communities the joint or extended family has

*A system of matrilineal inheritance. Under the system descent and succession to the

property is traced through females




given way to nuclear family in Kerala. Growth of nuclear families is

highlighted in Table 3.16.

Table 3.16

Percentage of Type of Family Households in Kerala

Type of family 1992 – 93 1998 - 99

Urban Rural Urban Rural

Nuclear 56.80 55.60 62.90 60.80

Non-Nuclear 43.20 44.40 37.10 39.20

Source: National Family Health Survey (NFHS – 1 and NFHS -2), India, 1992-93 and 98-99.

Industrialization, decline of agriculture, female employment and

migration also have played considerable role for the growth of nuclear

families in Kerala.

3.1.14 Urbanisation

Urbanisation is an important aspect in the process of economic and

social development and is associated with many problems such as

migration from villages to towns, relative cost of providing economic and

social services in the towns like housing, water supply, sanitation, transport

and power, location and dispersal of industries etc. In the context of Kerala,

the development of tertiary sector is the main cause of urbanization. It is

not the outcome of accelerated industrialization and urbanization as seen in

Tamil Nadu, Maharashtra, Andhra Pradesh and Karnataka (Economic

Review, 2011a). The urban sector of Kerala consists of 5 municipal

corporations and 53 municipalities. The growth and proportions of urban

population in Kerala is shown in Table 3.17.




Table 3.17

Urban Population in Kerala (in Lakh)

Census year Total population Total urban

population

Percentage of urban

population to total

population

1901 64 4 7.11

1911 71 5 7.34

1921 78 7 8.73

1931 95 9 9.64

1941 110 12 10.84

1951 135 18 13.48

1961 169 25 15.11

1971 213 35 16.24

1981 255 48 18.74

1991 291 77 26.39

2001 318 83 25.96

2011 333.8 159.32 47.72

Source: Census of India (Various Years)

The increasing trend of urbanization in Kerala is reflected by the

fact that the percentage of urban population to total population increased

from 7% in 1901 to 26% in 2001 and to 48% in 2011.

The number of towns in Kerala increased from 159 in 2001 to 520

in 2011. Urbanization not only affects changes in dietary patterns within a

country, it also promotes changes and convergence across borders

(Schmidhuber, 2003). Amidst several socio-economic achievements and

impressive statistics of the development indicators, unsustainable and




unplanned urban development is taking the state to severe tribulations in

environment and in human health (Raj and Azeez, 2010). The rate of

increase in the problem of obesity has been felt most dramatically in urban

settings (Rao et al, 2010). Though urbanization is an important aspect in the

process of economic and social development, it is associated with many

problems such as spread of consumerism, improper waste management in

towns, lack of social relation, over exploitation of natural resources etc.

3.1.15 Tourism

The tourism industry has taken Kerala to the global map with its

branding ‘God’s Own Country’. The brand ‘God's Own Country’ has

become popular around the world. Kerala has beautiful hills, valleys, lakes,

backwaters, lagoons and sea shores associated with rich heritage of art,

culture, indigenous medicines coupled with ideal climatic conditions create

a paradise for tourists. Today Kerala tourism is recognized as a pioneer and

trend setter in the country.

The rapid increase in the number of tourists in the state has a

tremendous impact on social, cultural and economic spheres of Kerala. The

effect of tourism on traditional societies is massive. Huge traveling

population has definitely brought about diverse cultural attributes and

behavioral patterns. Traditional or indigenous characteristics of the society

have been disappearing. The art, language, literature, luxuries, professions,

food habit, consumption pattern, dress, fashions etc have been showing

new trends due to contact with foreign tourists especially with western

society. Leisure industry is growing at a faster pace in Kerala. Modern

changes in the industry in the form of resorts, star hotels, ayurvedic

massage parlours, jungle safari, house boating, trekking amusement parks

etc cater to the needs of western tourists and which in turn results in inter-




mingling and mixing of different cultures and social outlook in Kerala

(Thomas, 2007).

The share of Kerala in the nation’s tourist market has been

increasing in recent decades as represented in Table 3.18.

Table 3.18

Tourist Arrivals in Kerala (2005-11)

Year

Number of Foreign

Tourists arrivals in

Kerala

Number of Domestic

Tourists arrivals in

Kerala

2005 346499 5946423

2006 428534 6271724

2007 515808 6642941

2008 598929 7591250

2009 557258 7913537

2010 659265 8595075

2011 732985 9381455

Source: Department of tourism, Govt. of Kerala, 2012

The year 2010-2011 has been recorded as a year of revival

compared to the previous years. International Tourist arrival continued to

decline due to the impact of Global Economic crisis in the previous years.

But the year 2011 marked significant improvements. The number of

domestic tourists to Kerala in the year 2011-2012 was 9381455 against

8595075 in 2010-2011. It shows an increase of 9.14% over the previous

years.

Table 3.19 reveals that the tourism industry is a major contributor

to the NSDP of Kerala's economy.




Table 3.19

Earning from Tourism in Kerala (Rs. in crores)

Year Foreign exchange

earning

Earning from

domestic tourists

Total revenue

(Direct, Indirect)

2002 705.67 3011.31 4931.00

2003 983.37 3492.68 5938.00

2004 1266.77 3881.92 6829

2005 1552.31 4281.42 7738

2006 1988.40 4891.94 9126.00

2007 2640.94 5978.65 11433.00

2008 3066.52 6832.13 13130.00

2009 2853.16 7122.18 13231.00

2010 3797.37 9282.68 17348

2011 4221.99 10131.97 19037

Source: Department of tourism, Govt. of Kerala, 2012

The total revenue generated from tourism comes to Rs. 19037

crores showing an increase of 9.73 per cent over the last year and the

tourism contribution to state’s GDP is around 9 per cent. The total

employment generated from tourism is about 10 lakhs including skilled,

semi-skilled and unskilled employment.

Tourism industry in Kerala not only facilitates infrastructure

development but also help in balanced and sustainable regional growth by

generating income and creating employment opportunities. However,

tourism is associated with many problems such as high infiltration of

foreign culture to our society, threat of pollution, entry of consumerism etc.

Threats to the tourism industry in Kerala




1. Global warming and changing weather pattern

2. Global economic recession

3. Differing monsoon pattern

4. Threat of pollution

5. Opening of Srilanka as a safe tourist destination.

Apart from the scenic beauty and cultural heritage, tourists are

being attracted to Kerala by Ayurveda, Yoga, Kathakali, Martial arts, rich

Folklore and art forms, different festivals and above all facilities for

research in Malayalam and Sanskrit (Vijayakumar, 1993).

The economic impact of tourism on state’s economy is reflected in

its capacity to generate income, foreign exchange and employment.

Besides, it supports to regional development by providing infrastructural

facilities also. Human resource development is another major area in

tourism development.

3.1.16 Migration

Migration has been playing an important role in determining

economic, social and cultural changes since many decades in Kerala. In

2008-09, 20% of total emigrants from India were from Kerala. The state

has witnessed a steadily growing trend in terms of emigrants. However, the

growth in inward remittances is much higher than the growth in emigrants

which indicates that more remittances are being sent per emigrant over

time. During 1990s the growth of remittances was much faster than the

growth of Kerala’s NSDP. Kerala tops other states in the matter of receipt

of remittances. Remittances have, if properly harnessed multiplier effects

on economic and social development. In a densely populated, land scarce,




industrially backward economy like Kerala migration has been the basic

factor which determines, the economic well-being of the people. One major

factor that contributes to higher consumer expenditure in Kerala is the large

scale migration of Keralite workers to foreign countries, especially to the

Gulf. Migration and the flow of remittances have resulted in an

unprecedented economic changes in Kerala’s economy since the mid, of

1970’s (Prakash, 1998). Empirical casual tests undertaken in the Kerala

region indicate that higher remittance levels have led to higher per capita

income and higher levels of investment which are considered key variables

affecting poverty reduction (UNCTAD, 2010). Table 3.20 shows total

remittances to Kerala.

Table 3.20

Total Remittances to Kerala

Year Remittance

(crores)

1998 10817

2003 18465

2008 43288

2011 49695

Source: Economic Review, Govt. of Kerala, 2011

The infusion of remittances has considerable impact on the Kerala

economy. Remittances were Rs.63315 per household in 2011 and Rs.57227

per household in 2008. The net domestic product (NSDP) for Kerala was

Rs. 246212.72 crores for 2010-11. The remittance (Rs.49695 crores) comes

to about 20 per cent of the NSDP of Kerala in 2011. The remittances were

used by households for subsistence, acquisition or renovation of buildings,




purchase of land and vehicles, education and health care of members of the

household, marriage of daughters, and acquisition of consumer durables.

The direction of migration is given in Table 3.21.

Table 3.21

Country-wise Migrants of Kerala for 2008 -09

SL. No. Country Keralites

1 America 102440

2 England 38894

3 Canada 13,695

4 Malaysia 12,052

5 Singapore 11,504

6 African countries 12600

7 Saudi Arabia 5,03433

8 U.A.E 918122

9 Kuwait 12,9282

10 Bahrain 101344

11 Oman 167628

12 Qatar 121613

13 Other countries 60808

Total 21,93415

Source: Economic Review, Govt. of Kerala, 2009

Gulf countries are the principal destination of Kerala emigrants.

However, the percentage of emigrants gone to Gulf countries shows a

decreasing trend.




Migration has improved the household management efficiency of

more than a million housewives, led to widening of income disparities,

empowered some strong minority section economically and politically and

revolutionalized consumption pattern and spending habits. The remittance

income, particularly from the Middle East, has improved and diversified

the household consumption decision and has accelerated the process of

educational and epidemiological transition in the state (Ibrahim, 2008).

The major factor for the relative affluence and associated lifestyle is the

emigration phenomenon and hence it is one major factor responsible for the

shifts in the diseases pattern of Kerala. Higher incidence of hypertension,

diabetes, heart diseases found among emigrant households could be

attributed largely to their food and living habits. The gulf emigrants

generally eat more fat intensive non-vegetarian items as well as finely

processed food articles. Consumption pattern of emigrant household shows

that they spend larger amount on milk, meat, fish and bakery items as

compared to non-emigrant households. The demonstration effects of the

gulf man’s style of living have engendered similar tendencies among non-

emigrant and poor households as well (Ibrahim, 2009).

3.1.17 Food Culture of Kerala

Kerala may be probably being the one society in India that has

undergone profound changes in the food culture in the last few decades. In

the past, Keralites met the basic nutritional needs from their homes where

there was plenty of rice and a lot of fruits and vegetables in the kitchen

garden. There were ‘Nellara’ (store house of wheat and rice) pazhapura

(store house for fruits) where bananas, jack fruits and papaya used to be

plenty and ‘kizhangu pura where a lot of tuber crops were stored. But today

the food diversity in Kerala has got reduced considerably. The variety of




cereals has narrowed to one or two and eating ready made fast foods has

become the culture of people in Kerala. Food habits of the people of

Kerala have gone from bad to worse with the easy availability of calorie

rich junk food. Advent of preserved and junk food* into the daily diets

replacing locally available nutritious items has far reaching consequences

on the health of the younger generation. The demonstration effect of such

practices has affected the dietary habits of the poor household too. Western

restaurant chains, like Mc Donalds, KFC and Pizza Hut can be seen not

only in metro cities but in urban city centers too. It has been a fashion

rather than need that people go out to have their food. The neo rich society

opts for exotic packed and fast food rather than indigenous nutrient rich and

diverse food items. The traditional diet which was predominantly

vegetarian and fish based has given way to more expensive meat based

food in Kerala since 1990. The continuous increase in consumer

expenditure is shown in Table 3.22.

* An informal term for food that is of little nutritional value and often high in fat, sugar and

calories.




Table 3.22

Tends in Average Consumer Expenditure per Person for a Period of 30

Days in Various NSS Rounds

Year and Round of

NSS Kerala India

Percentage of

variation of

Kerala over

India

1.Rural

1990 – 91 (46th )

1993 – 94 (50th )

2000 – 01 (56th )

2004 – 05 (61st )

2006 – 07 (63rd )

2007 - 08 (64th)

2009-10(66th)

2. Urban

1990 – 91 (46th )

1993 – 94 (50th )

2000 – 01 (56th )

2004 – 05 (61st )

2006 – 07 (63rd )

2007 - 08 (64th )

2009 - 10 (66th )

261.85

390.40

841.31

1013.15

1250.00

1383.00

1835.00

369.36

493.50

1203.65

1290.89

1681.00

1948.00

2413.00

202.12

281.60

494.91

558.78

695.00

772.00

1053.64

317.75

457.70

914.58

1052.36

1312.00

1472.00

1984.46

29.5

38.6

70.0

81.3

80.0

79.1

74.1

16.2

7.80

31.6

22.7

28.1

32.3

21.5 Source: Economic Review (various years), Govt. of Kerala.

Average Monthly Per Capita Consumer Expenditure (AMPCE) of

rural population of Kerala registered a growth rate of 600% during 1990 –

2010 whereas India’s AMPCE of rural people grew only by 422% during

the same period. In urban areas too Kerala’s AMPCE remained higher than

India’s AMPCE. Kerala outstrips all other Indian states in the case of

average monthly per capita consumer expenditure which is clearly shown

in Table 3.23. Kerala ranks first position with respect to MPCE in rural and

urban areas in India.




Table 3.23

Average Monthly Per Capita Consumer Expenditure

State

Rural Urban

Average

MPCE (Rs) Rank

Average

MPCE (Rs) Rank

Andrapradesh 816 8 1550 6

Assam 799 10 1452 9

Bihar 598 14 1080 16

Chattisgarh 582 16 1503 7

Gujrat 875 4 1471 8

Haryana 1034 3 1628 5

Jaharkhant 592 15 1395 12

Karnataka 819 7 1668 3

Kerala 1383 1 1948 1

Madhya Pradesh 634 13 1190 14

Maharashtra 868 5 1709 2

Orissa 559 17 1438 10

Punjab 1273 2 1633 4

Rajastan 801 9 1265 13

Tamil Nadu 834 6 1410 11

Uttarpradesh 680 12 1121 15

West Bengal 702 11 1452 9

All India 772 1472

Source: NSSO-64th round




3.2 Change in Consumption Pattern from Food to Non-Food items

With economic development, there has been a change in

consumption pattern from food to non food items. It has been observed that

with the growth of the economy expenditure on non food items keeps on

increasing. Available data on consumption pattern in Kerala during the last

three decades substantiate this contention. Among the non-food items,

expenditure on clothing and footwear, miscellaneous goods and services

and durable goods have shown a significant increase (Harikumar and

Sudhakar, 2008). Tables 3.24 and 3.25 show respectively the changing

trends in food and non-food items in Kerala.

Table 3.24

Trends in Percentage Distribution of Food and Non-food in Various

NSS Rounds, Kerala (percentage)

Years and Round of

NSS

Rural Urban

Food Non -food Food Non -food

1990 – 91 (46th ) 63.29 36.71 49.66 50.34

1993 – 94 (50th ) 60.45 39.55 53.90 46.10

2000 – 01 (56th ) 49.63 50.37 43.22 56.78

2004 – 05 (61st ) 44.97 55.03 39.97 60.03

2006 – 07 (63rd ) 40.43 59.57 34.43 65.57

2007 – 08 (64th) 40.79 59.21 36.10 63.90

2009 – 2010 (66th ) 45.94 54.05 40.2 59.81

Source: Economic Review,(Various Years), Govt. of Kerala.




Table 3.25

Average Expenditure on Food and Non-food Items per Person for 30

days in Kerala (2009-10)

Item Food (Rs) Non-food (Rs) Total (Rs)

Rural

Urban

843

969.76

992.92

1442.81

1835.92

2412.57

Source: Economic Review, 2011, Govt. of Kerala, p. 52.

The average expenditure on food and non-food items per person for

30 days in the rural areas of Kerala was Rs 843 and Rs.992.92 respectively.

In the urban sector, the average expenditure on food and non-food items per

person for 30 days was 969.76 and 1442.81 respectively. Higher

proportions of expenditure incurred on non-food commodities like

consumer durables, superfine clothing, expensive footwear, home

appliances building materials, mobile phones, home decorations etc.

The pattern of food consumption also has changed a lot since the

last decade (Table 3.24). It is found that inadequate intake of food and

nutrients are major etiological factors for most of the nutritional problems

in the country. While the consumption of cereals and roots and tubers are

satisfactory, the average consumption of most protective and income elastic

foods such as pulses, milk, fruits and green leafy vegetables is found to be

inadequate (Laxmaiah and Brahmam, 2009). There is a strong evidence of a

sustained decline in per capita calorie consumption during the last 25 years

or so. The decline in per capita consumption is not limited to calories only.




Table 3.26

Pattern of Food Consumption in Kerala

Item Rural

(Rs.)

Urban

(Rs.)

1.Cereals & cereals substitutes .10 .07

2. Egg, fish, meat .07 .06

3.Beverages,refreshments & processed food .06 .07

4. Milk and milk products .04 .04

5. Fruits .04 .03

6. Vegetables .03 .03

7. Others .06 .04

Total .40 .34

Source: Economic Review, 2009, Govt. of Kerala, p.385

Out of every rupee spent for consumption by an average Keralite in

2006-2007, 40 paise was spent on food. Of these 10 paise was spent on

cereals and cereals substitute, 7 paise on egg, fish, meat, 6 paise on

beverages and processed food.

Kerala has been witnessing a shift in the expenditure from food to

non-food items. The consumers have also become globalised in their

thinking. Population in low and middle income countries are now

consuming diets high in total energy, fat, salt and sugar. The increased

consumption of these foods in these countries is driven partly by shifts in

demand side factors such as increased income and reduced time to prepare

food. Supply side determinants include increased production, promotion

and marketing of processed foods and those in high fat, salt and sugar, as

well as tobacco and other products with adverse effects on the health status

of adolescents.




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