Page 117 - economic review

89CHAPTER

Industry and Labour

Introduction

As per the Kerala Perspective Plan 2030 document, the state enjoys revealed comparative advantage
among Indian states in select three-digit industries. Most of them are resource based. There is also
a comparative advantage in knowledge intensive electronic and electrical components industries.
This provides the state with opportunities to expand its base in technology-driven segments of the
industry by building on this. Heavy manufacturing and environmentally polluting industries have no
scope in Kerala. Kerala is a labour friendly state and is conscious of labour rights. Labour force in
Kerala is literate and has ethical and decent work standards. The aim of the state is to provide high
quality employment opportunities to its labour force along with a high standard of living. High value
added industries which do not require much land are being encouraged.

Section 1
Manufacturing

3.2 As per the quick estimates by CSO the general index of industrial production with base 2004-05
for the month of December 2014 stands at 182.6 which is 1.7% higher than the level in December
2013. The cumulative growth for the period April-December 2014 over the corresponding period
of the previous year stands at 2.1%. The cumulative growth in the three sectors viz., Mining,
Manufacturing and Electricity during April – December 2014-15 over the corresponding period of
2013 has been 1.7%, 1.2% and 10 % respectively. The slow industrial growth has been a major
cause of concern for the country.
3.3 At the national level, the contribution of manufacturing sector to GDP during the 1st half of 2014-
15 is ` 4.24 lakh crore at 2004-05 prices constituting 14.7% of GDP according to the estimates
published by CSO. The growth rate of manufacturing sector during 1st half of 2014-15 is 1.8% over
the corresponding period of 2013-14. At current prices, the manufacturing sector constitutes 12.6%
(` 6.84 lakh crore) of GDP during 1st half of 2014-15 with 5.4% growth over the corresponding period
of previous year. As per the provisional estimates, the manufacturing sector contributes 14.9% of
GDP at 2004-05 prices and 12.9% at current prices.

3.4 In Kerala, according to the quick estimates by Economic & Statistics Department, the manufacturing
sector registered a growth rate of 8.2 per cent at current prices during 2013-14 compared to the
growth rate of 7.4 per cent in the previous year. The contribution of income from manufacturing sector

Economic Review 2014