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Database of the Kerala Economy

Department of Economics & Statistics, Govt. of Kerala *

1.0. Introduction

Before we go into various aspects of database of the Kerala economy, it is crucial to recapitulate our understanding on the geophysical aspects of the State.

Kerala lies in the south-west corner of the Indian Peninsula between 8 Degree 18' and 12 Degree 48' North latitudes and 74 Degree 52' and 77 Degree 22' east longitude as a long narrow strip of land, 30 to 130 Km wide between the Western Ghats on the East and the Arabian sea on the west with a 590 km coastline. Though a smaller state with a geographical area of only 38863 sq.Kms. (1.18% of the area of the Indian Union), Kerala supports a population of 31,838,619. The decadal population growth is 9.42%, population density of 819 person/sq. Km and sex ratio 1058. The literacy rate of the State is 90.92%.

Physiographically, the State of Kerala is divided into three natural zones: the Lowlands, the Midlands and Highlands. These zones form parallel belts running across the length of the State (from North to South). The width of the State varies from 15 to 120 Km. While the highlands comprising of the high ranges of the Western Ghats are situated on the eastern boundary, the lowlands are a narrow strip along the coast and the midlands lie between the highlands and lowlands. Numerous lagoons and backwaters characterize the Lowlands, which receive drainage from rivers. A network of artificial canals that help inland navigation for a length of about 558 Km. The Lowland is often subjected to salinity intrusion connects the backwaters. Rice and coconut are the important crops grown in the lowlands. Kolelands of Trichur and padasekharams of Kuttanad (paddy fields below mean sea level) are situated in the low lands. A few kilometers from the sea to the east, the topography changes to a cluster of lateritic hills with numerous valleys in between called 'Elas'. The low lateritic hills in this region are interspersed with paddy fields (elas), coconut and arecanut groves.

The Western Ghats, which form the eastern parts of the State, rise from very low altitudes of a few hundred meters upto 2000m on an average. Most of the reserve forests of the State are in the highland region. The important peaks in the Western Ghats are the Anamudi (2690m) and Nilgiris (2470m). The Palghat Gap with a width of about 32 km is the largest gap in the Western Ghats. In addition, there are a few other passes in the Ghats such as Aramboli, Kumili, Kambam, Thevaram, Bodinaikannur, Karkur, Periya, Perambadi etc.


2.0. Data Administration

Kerala is one of the states in India having a well-organized statistical system. The Directorate of Economics & Statistics (DES) is the official nodal agency of the State responsible for collection, compilation, analysis, interpretation and dissemination of statistics relating to various sectors of the economy. This Department had its origin in the scheme 'Improvement of Agricultural Statistics' started in 1949 as a post-war reconstruction scheme under the Department of Research in the erstwhile Travancore University.

After the integration of the two constituent states, the Government of Travancore-Cochin constituted the Board of Statistics in 1951 with the Director of Research as Chairman, and the Secretary to Government Food and Agriculture and the Professor of Statistics as members. The Secretary to Board of Statistics also was appointed in 1951. The Professor of Statistics and the head of the Department were designated as the Director of Statistics. The Professor of Statistics in the University of Travancore was concurrently appointed as Director of Statistics also.

In 1956 District Statistical Offices were established in the four districts of the erstwhile Travancore-Cochin State. As the state of Kerala was formed in November 1956, a portion of the statistical staff of the Madras State was transferred to this Department. In November 1957 the activities of the Department were extended to the Malabar and Kasaragod areas by establishing District offices and Taluk Offices in those areas. In December 1958 the Bureau of Economic Studies was set up by the State Government to carry out research studies on various sectors of Kerala economy and to render advice to Government on economic issues refereed to it. The Bureau of Economics and Statistics came into being on 1st August 1963, by amalgamating the Bureau of Economics Studies with the Department of Statistics.

Renamed subsequently as the Directorate of Economics & Statistics (DES), it is the nerve centre of the State statistical system. The Director is the technical and administrative head of the Department. Being the statistical authority of the State, he functions as the authority for the collection, processing and dissemination of all statistical data relating to the State economy. The statistical system of Kerala also includes the various Statistical Cells working in various Departments of the State Government. Presently seventeen in number, they are manned by technically trained personnel drawn from the Department of Economics & Statistics as temporary additions. These Cells collect, compile, analyse and disseminate statistical data relevant to the functions and needs of the concerned Department.

3.0. Database: Areas and Coverage

The database of the State can be broadly classified into the following fields or sectors:

3.1. Agricultural Statistics

The scheme envisages the collection of data for estimating area and production for each agricultural year by doing crop-cutting experiments in selected zones which is a panchayat or one or more panchayats. The main objective of the scheme is to prepare annual statistics of land use, area and production of crops at district level. Crop estimation survey for the major crops are also being conducted under this scheme. In addition to the above three minor crops also are selected for crop estimation survey (CES) every year by rotation.

3.2. Agricultural Census

The main objectives of Agricultural Census, done on quinquinnial basis, are:

  1. to arrive at a distribution of operational holdings by size class and to assess the incidence of various tenure systems;


  2. to study the pattern of land use and the area under different crops;


  3. to study specifically the agricultural practices and inputs used in cultivation;.and


  4. to estimate the quantity and type of fertilizers and manure used, extent of irrigated area along with the sources of irrigation.
3.3. Cost of Cultivation Studies

The data collected from this annual survey are used for the successful implementation of various schemes in the agricultural sector, required to draw up realistic plans for the development of various crops, diversification of cropping patterns and maximization of net returns from them. Moreover, these data are used by the State and Central Governments.

3.4. Economic Census

The Economic Census is aimed at providing basic information on distribution of non-agricultural enterprises and follow-up surveys for collection of detailed information about the structure of enterprises, investment, input, output, employment, etc. The first countrywide Economic Census was carried out in India in 1977 followed by the second in 1980, third in 1990 and the fourth in 1998. The Fourth Economic Census covered non-agricultural enterprises in the unorganized sector.

3.5. Annual Survey of Industries

The Annual Survey of Industries (ASI) is the principal source of data on various aspects of registered establishments classified under manufacturing, electricity, gas & water supply and repair & services.

The ASI covers broadly the following three types of units:
  1. Units registered under section 2m(i) and 2m(ii) of the Factories Act 1948;


  2. Electricity undertaking registered with Central Electricity Authority;

  3. Beedi and Cigar Establishments which are registered under Beedi & Cigar Workers Act 1966.

The factories included in the Survey are grouped into two sectors viz. Census and Sample Sectors. Units employing 50 or more workers with power and those employing 100 or more workers without power, are included in the Census sector. All the other units are included in the sample sector.

Units coming under census sector are enumerated completely and only a small sample is selected from sample sector. In order to have a good sample for the estimate at State and district levels, DES has also started ASI from a Sample of the residuals of the sample sector, which is not covered by Government of India.

3.6. Index of Industrial Production

The Index of Industrial Production measures the impact of development in the field of industrial sector over a period of time in the State. The Index covers production in the manufacturing and electricity generation sectors. The indices are calculated quarterly from the year 1975- 76 with base 1970, and from the year 1988-89 with the base year 1980-81. The shift of base year to 1993-94 is being done. The data are collected from a sample under the frame of Annual Survey of Industries, on the assumption that this sample contributes the major share of the value added by the manufacturing sector.

3.7. Housing Statistics

The Housing Cell functioning in the Public Works Department of the Government of Kerala, collects data on government sector buildings costing Rs.50000/- or more and that in the Directorate of Municipalities collects data on construction in the Municipalities and the Cell in the Directorate collects data directly from the City Corporations In addition to this, data on prices of building materials and wage rates in the housing construction sector are also collected and published. This information on house construction activities is very useful for the formulation of housing policies.

3.8. Labour Statistics

A number of labour legislation were enacted for the purpose of providing a healthier, safer and more pleasant environment for workmen and improving their productivity. Among them Factories Act 1948, Payments of Wages Act 1936, and Industrial Disputes Act 1967 have a significant role to perform in regulating and controlling the welfare amenities of the factory workers and employees. The data collected under the Labour Legislation excluding the above enactment are supportive for the effective labour administration and provide significant indicators of economic development.

DES is engaged in the collection, tabulation and analysis of data under the above enactment and the preparation of reports for dissemination. The returns (Annual and Half Yearly) under Factories Act which are statutory in nature are collected from the Factory units registered under Section 2 m (i), Section 2m (ii) and section 85 of the Act. Under the Payment of Wages Act, the factory managements are required to furnish the annual returns (From IV) containing the relevant information relating to the workers in the factories earning less than Rs.1600/- p.m. The non-statutory returns (monthly) under Industrial Disputes Act relating to work stoppage, closure, retrenchment etc. are collected from the establishments where industrial disputes are prevailing. The returns under the Factories Act and Payment of Wages Act are received through the Directorate of Factories and Boilers. The monthly returns under the Industrial Disputes Act are collected through the District Labour Officers and Chief Inspector of Plantations. Data under Maternity Benefit Act are also collected and compiled.

3.9. Vital Statistics -Civil Registration System

The data generated through civil registration under the Registration of Births and Death Act, 1969 are collected. The Local Registrars furnish the details of births and deaths in the prescribed forms regularly to the Directorate of Economics and Statistics, where further processing of the data on vital events (births and deaths) is carried out.

Survey on Census of death (rural), Survey on medical certification of cause of death and sport check survey are also conducted.

3.10. Sample Registration

The objective of the scheme is to collect quick and reliable data for the estimation of vital rates. This scheme has been found necessary because of the incompleteness of the civil registration data. In Kerala the survey in the rural sector is being conducted by the DES, and in urban sector by the Census Department of Government of India.

3.11. Wage Structure Survey

The trend in wage rates for different kinds of skilled and unskilled laborers in the construction sector and of the paid employees in the trade and commerce sector has been the subject of the survey. This survey was started in 1963-64.

3.12. Price Statistics

  1. Computation of Consumer Price Index Numbers for industrial workers and Agricultural labourers (Base year 1998-99).


  2. Parity Index Numbers


  3. Wholesale Price Index Numbers


  4. Retail and wholesale prices of essential commodities are collected from different centres daily.


  5. Dietary prices Prices of dietary articles


  6. Wholesale price for Market intelligence.
3.13. National Sample Survey -Annual Survey of NSS

Although initially it was envisaged that NSS should concentrate on collecting data to fill up the gaps in statistics required for national income estimation, gradually the scope has widened to meet the needs of planning. NSS has now completed 57 rounds of surveys covering a wide range of socio economic subjects such as agriculture, industry, consumer expenditure, employment, live stock, debts & investments etc. The NSS consists of a Central Sample and an equal matching sample known as State Sample. The samples are different. Fieldwork of Central Sample is done by NSSO and the fieldwork & processing of state sample by state DES. The 58th round NSS is being done and earmarked for collection of data on disability, housing condition, village facilities and slum particulars besides that on household consumer expenditure and employment-unemployment.

3.14. State Income

DES is computing estimates of State Domestics Product from 1955 onwards, according to the standard methodology issued by the Central Statistical Organization. The work relating to the economic classification of State expenditure including Government undertakings and local bodies and preparation of standard tables on regional accounts and capital formation, are also undertaken from 1978 onwards.

3.15. Evaluation Studies

The Evaluation Division was started in 1973. This Division conducts annual Evaluation Study of the schemes implemented by the soil conservation department in all districts.

3.16. Other Areas

The other areas covered by the DES are the following:

4.0. Data Gaps

Even though data are collected from many sectors, there are data gaps which need urgent attention. The following are a few such areas:

4.1. Agriculture and Allied Sectors

Data on cost of production of crops, marketable surplus of agricultural commodities, details of land utilistion and cropping pattern for different agro- climatic zones, and the details of agricultural crops cultivated in forest areas are mentioned as the major data gaps in this regard.

4.2. Cost of Cultivation Statistics

  1. The available cost of cultivation data relate to the State as a whole and hence may not be relevant for region-wise studies.


  2. Cost data according to different size classes of operational holdings are not collected under this scheme.


  3. The cost data are also not available separately for irrigated and unirrigated lands/high yielding and local variety of seeds grown.


  4. Data on Crop estimations of fruits and vegetables is missing.


  5. Small area estimation is yet to be developed fully.


  6. Forecasting of production of crops

4.3. Animal Husbandry Statistics

Periodic studies should be conducted to estimate the cost of production of livestock products, to study the impact of the various special Animal Husbandry programmes to the weaker sections of the society to estimate employment potential of livestock and poultry keeping in rural areas etc. Also category-wise technical manpower available in the sector, future annual requirement and attribution rate under each category have to be prepared annually which is essential for manpower planning.

There is wide data gap on livestock products. For the computation of State Domestic Product also, filling up of data gap is essential.

4.4. Fisheries Statistics

Coverage of Marine Fisheries and Inland fisheries is limited. This needs to be enhanced.

4.5. Forest Statistics

The major gaps relate to information on unauthorised removals of produces from forest areas, details of agricultural crops grown in forest areas, prices of timber and firewood in the private depots and availability of timber and firewood in non-forest areas.

4.6. Plantation Crops

The major gaps relate to the domestic consumption of major plantation crops. Regarding tea, coffee and cardamom, no reliable statistics relating to domestic consumption are available.

4.7. Cardamom Plantation Industry

The area under cardamom is estimated from the statutory returns submitted by the growers. The estimate is defective since there are a large number of unregistered growers. The additional planting and conversion to other crops are also not accounted. To improve the area estimates and to fill in the data gaps in employment, ownership pattern etc., a census of cardamom estates is found necessary.

4.8. Industrial Statistics

In view of the growing importance of this sector, a system for regular flow of data has to be designed and developed taking into consideration the characteristics of the sector and the information needs of the users, both present and potential.

  1. There is sampling and non sampling errors.


  2. There is data gap of industrial units which are eligible for registration.


  3. Unregistered Manufacturing Sector is to be given much importance.


  4. There is wide data gap in the Small Scale Industries Sector. At present there is no frame in this sector for collecting data. Representation of this sector can add a lot to the Index of Industrial Production.


  5. Data from other sources like sales tax etc. also is to be taken care of.
4.9. Trade Statistics

  1. Data gap in commodity wise and country-wise details of imports and exports.

  2. Itemwise/statewise details of inter state movement/flow of goods is to be streamlined.

  3. Riverborne trade data.

  4. Commodity wise details of air cargo.
4.10. Services Sector Statistics

Data of emerging areas like software exports, e-commerce, entertainment sector and related fields in employment etc. need to be collected. Similarly, there are also data gaps in non-manufacturing industries (larger units).

4.11. Infrastructure Statistics

On transport statistics, a review of the present database shows that there is no regular and systematic flow of data from the lower levels, and there is no system to register and maintain basic data at these levels. Regarding road transport, very little information is collected and published on goods and passenger transport in the private sector. There is little information regarding the output of goods and vehicles in terms of tonnage carried and tonne kilometers performed. These are not collected and presented by any agency in the State. All data collection relating to Motor Transport Statistics needs co-ordination at the State level.

Other important areas are:

4.12. Energy Sector

The data on electricity consumption should be published at regional and sub-regional levels also. Kerala State Electricity Board should collect and publish industry wise consumption of electricity. Data on import/trade of coal, oil and gas should be collected and published. Consumption of non-commercial form of energy should be studied.

4. 13. Socio-economic Statistics

There is data gap of health statistics in private sector and other indigenous system of medicine. Data gap in the labour and employment sector is to be minimised.

4.14. Plantation Sector

Socio economic conditions of plantation labour, cost of cultivation/production, Age-wise distribution of plants/area, size distribution of plantation holdings and, wage structure are areas which need to be properly covered.

4.15. Education Statistics
The private unaided sector needs to be investigated in detail. Data from ISC, ICSE, CBSE etc., system of education should be collected. There is data gap at technical and higher education level

4.16. Environment Statistics

This area also has significant data gaps.

4.17. Financial and External Sector Statistics
There is wide data gap in non-banking financial companies. Coverage of all non-household financial enterprises like share brokers, chettiars, pawnbrokers and various kinds of money lenders etc. There is data gap in the financial data in respect of all Non- Governmental Organisations and Self Help Groups involved in micro financing. Similarly, insurance statistics is to be streamlined since this sector is privatised.

* Presented by Mr. Cheriyan Kunju, Joint Director