Page 5 - economic review

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FOREWORD

The Economic Review is a much awaited document as it provides valuable,

balanced, comprehensive and timely information about Kerala’s economic
performance in the past year. This account is set against the context of global trends,
national trends and the State’s own performance in the recent past. It involves
collection of data from innumerable implementing agencies at state, district and local
body levels and putting the data together to give a meaningful interpretation of the
state of the economy. A variety of stakeholders, including planners at the Central and
State level, civil society, researchers, non-resident Keralites, media and informed
citizens use this document, both to increase their awareness as well as to further
their research. The book is published in the print media in English and Malayalam. An
e-version is also uploaded on the State Planning Board website www.spb.kerala.gov.in.
We are particularly proud of the e-book we have introduced this year, which apart
from being highly interactive in terms of links, also has voice clippings on important
developments in the state. The e-book can be downloaded in its entirety and used by
readers whenever required.This is part of the Planning Board’s endeavour to make
the Review more relevant and user friendly.

The international environment was favourable for India as there was a substantial
reduction in global prices of various commodities that form a major part of the
country’s import bill. The substantial reduction in oil prices, however is a not as
good news for Keralites as it is for the rest of the country, since it is likely to have
an adverse impact on employment opportunities for non resident Keralites in the
Gulf region, which might impact remittances adversely and worsen the already high
unemployment within the state. The fall in rubber prices has been another major
concern for rubber planters in Kerala.

At the national level, 2014 brought about some significant changes including the
dismantling of the Planning Commission with an assurance for an enhanced role for
States in the co-operative federal regime; the emphasis on “minimum government-
maximum governance”; the setting up of an Expenditure Commission to rationalize
public expenditure; an all round effort to improve the investment scenario including
Foreign Direct Investment, especially in manufacturing and infrastructure and a
nation – wide drive for financial inclusion, cleanliness and quicker environmental
clearances. Other reforms included deregulation of diesel prices, replacement of

Economic Review 2014