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The service sector (including tourism, public administration, banking and finance, transportation, and communications—63.8% of GSDP in 2002–2003) and the agricultural and fishing industries (together 17.2% of GSDP) dominate the economy.

Nearly half of Kerala's people are dependent on agriculture alone for income. Some 600 varieties of rice (Kerala's most important staple food and cereal crop) are harvested from 3105.21 km² (a decline from 5883.4 km² in 1990) of paddy fields; 688,859 tonnes are produced per annum. Other key crops include coconut (899,198 ha), tea, coffee (23% of Indian production, or 57,000 tonnes), rubber, cashews, and spices—including pepper, cardamom, vanilla, cinnamon, and nutmeg. Around 1.050 million fishermen haul an annual catch of 668,000 tonnes (1999–2000 estimate); 222 fishing villages are strung along the 590 km coast. Another 113 fishing villages dot the hinterland.

The state treasury has suffered loss of thousands of millions of rupees thanks to the state staging over 100 hartals annually in recent times. A record total of 223 hartals were observed in 2006, resulting in a revenue loss of over Indian Rupee symbol.svg2000 crore