SOCIO ECONOMIC PROFILE AND CONSUMPTION PATTERN: CHANGING TRENDS IN KERALA

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1 Chapter III SOCIO ECONOMIC PROFILE AND CONSUMPTION PATTERN: CHANGING TRENDS IN KERALA C o n t e n t s 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

2 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 socioeconomic 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 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 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 Table 3.1 Trends in NSDP of Kerala (At constant price) ( , and prices) Year NSDP (Rs. in crores) (P) (P) 10-11(Q) (Q) Source: Economic Review (various years), Kerala State Planning Board, Thiruvananthapuram P-Provisional data Q-Quick estimate On the eve of launching the 8 th five year plan in , 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 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 and are shown in 60

4 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 T e rt ia ry 2 9 % Primary 11% Secondary 20% S e c o n d a ry 1 5 % P rim a ry 5 6 % Tertiary 69% P rim a ry S e c o n d a ry T e rt ia ry Primary Secondary Tertiary Economic Review (2011), Kerala State planning Board, Thiruvananthapuram, p.30. 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 The contributions from primary, secondary and tertiary sectors to GSDP constitute 11%, 20% and 69% respectively during 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 Per Capita Income (PCI) The growth of state per capita income is another important indicator for measuring the growth of an economy. During , the per capita income of Kerala was Rs.1932 which was lower than that of India (Rs.2216) with prices. The per capita income of Kerala has shown 61

5 vast improvements since 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 ( , and , prices) Year PCI of Kerala (Rs) (P) (Q) Per. Capita National Income (Rs) 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

6 Figure 3.2 Growth Rate of Per Capita Income: Kerala and India PCI of Kerala Percapital National Income Source: Economic Review (various Years), State Planning Board, Thiruvananthapuram Till the PCI of the state was lower than per capita national income. The per capita state income increased from in to in , registering a growth rate of 41.68%. The per capita national income increased by 38.35% during the same period. During 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

7 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, Census year Population(Million) Decadal growth rate (%) Kerala India Kerala India Source: Census of India,

8 Figure 3.3 Population Growth Rate: Kerala & India G ro w th R a te (P e rc e n ta g e ) Census Years Kerala India Sources: Census of India, 2011 Kerala registered a growth rate of above 2% during (Economic Review, various years). The same pattern was true for India for the later period of Until 1971, Kerala s growth rate remained always higher than that of India s. India overtook Kerala during 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 65

9 2001(Census of India, various years). However, the growth rate of population during the past decade was a mere 48%, the lowest rate experienced since the formation of the state of Kerala. The growth rate during in Kerala was the lowest in India Sex Ratio in Kerala & India ( ) 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 Table 3.4 Sex Ratio in Kerala and India, Census year Kerala Sex ratio India Source: Census of India, 2011 Kerala is the only state in the country in which the excess of female has been growing during the entire 20 th 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). 66

10 3.1.6 Density of Population In terms of density of population Kerala is one among the top, with 859 per sq. km in Figure 3.4 reveals the density of population in Kerala and in India. Figure 3.4 Density of Population Kerala and India Density of population Kerala Density of population India Source: Census of India, 2011 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 Age Structure of Kerala Table 3.5 describes the changing age structure of population of Kerala from 1961 to

11 Table 3.5 Demographic Scenario of Kerala Past, Present and Future (In million) Year Below & above Source: Zachariah, K.C (2008). A Century of Developments in Kerala Demography, in B.A. Prakash and V.R Prabhakaran (eds.), Millennium, Serials Publications, New Delhi, pp Kerala's Development Issues in the New Fifty years ago, Kerala had an elderly population (above 60) of just.986 million. By 2001 their number had increased to million. By 2051 their number is almost sure to reach over 10 million, about 3.2 times the number in 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) 68

12 The worst affected group is the children below the age of 15. From million in 1991 their number declined to million in 2001 and it would decline consistently to about million in 2051(Kerala Development Report, 2008b) 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 21 st 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. 69

13 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 Source: Census of India, 2001 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 is much higher and the trend is likely to continue for the next few decades (Kurian, 2008) 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 70

14 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 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 Male 4.18 Public Sector Female 1.9 Total 6.08 Male 2.43 Private Sector Female 2.49 Total 4.92 Male 6.61 Total 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 government institutions in the state (Economic Review, 2010). 71

15 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 per cent of the employment in the organised sector in Kerala. Table 3.8 shows the distribution of employment in public sector in Kerala. Year (at the end of December) Table 3.8 Employment in Public Sector in Kerala ( In Lakhs) Central Govt. State Govt. Quasi Govt. Local Bodies Total 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 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

16 Figure 3.5 Distribution of Employment in the Public Sector (March 2011) State Quasi 28% Local Bodies 4% Central Government 10% Central Quasi 15% State Government 43% 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 Primary Secondary Tertiary 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 73

17 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 survey for Kerala is given below in Table Table 3.10 Unemployment Rate (per 1000) for all Persons According to Current Daily Status approach (Based on survey), Kerala Sector Male Female Male + Female Rural Urban Rural+Urban 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 74

18 certificate holders than among the professionally qualified, the post graduates and the higher degree holders.(kerala Development Report, 2008a) 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. 75

19 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 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 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. 76

20 Table 3.11 Energy Source in Kerala as on Sl. No. Source of energy Installed capacity (MW) 1 Hydel : KSEB Thermal : KSEB Wind : KSEB NTPC Thermal : IPP Hydel : Captive 33 7 Hydel : IPP 10 8 Wind : IPP Total 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 MW during 2011, the lion's share of MW of installed capacity comes from 24 hydel stations; 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 MW. Capacity addition during was only (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. 77

21 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 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 is 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 vehicles per sq. km. or per people. The transport system in Kerala is consumer oriented and passenger movement accounts for major portion of transportation 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 lakhs (Land line 36.03, WLL 4.33 and mobile 20.60). Kerala telecom circle 78

22 has the 2 nd 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 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 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 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 , speed 79

23 post booking facility has been extended to all post offices of this postal circle, which is first time in the country 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 Source : Census of India (Various years) 80

24 Figure 3.6 Literacy Rate: Kerala & India (Percentage) 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

25 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

26 Table 3.13 University-wise Arts and Science College, 2011 SL. No. Name of University Government Aided Unaided 1 Kerala Calicut Mahatma Gandhi Kannur Total 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 9 th 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 6 Agricultural University 2 20 Total 142 Source: Directorate of Technical education, Govt. of Kerala,

27 At present there are 142 engineering colleges in the state with a sanctioned intake of in 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 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. 84

28 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 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 19 th 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 85

29 given way to nuclear family in Kerala. Growth of nuclear families is highlighted in Table Table 3.16 Percentage of Type of Family Households in Kerala Type of family Urban Rural Urban Rural Nuclear Non-Nuclear Source: National Family Health Survey (NFHS 1 and NFHS -2), India, and Industrialization, decline of agriculture, female employment and migration also have played considerable role for the growth of nuclear families in Kerala 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

30 Census year Chapter III Socio-Economic Profile and Consumption Table 3.17 Urban Population in Kerala (in Lakh) Total population Total urban population Percentage of urban population to total population 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 The number of towns in Kerala increased from 159 in 2001 to 520 in 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 87

31 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 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- 88

32 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 Year Table 3.18 Tourist Arrivals in Kerala ( ) Number of Foreign Tourists arrivals in Kerala Number of Domestic Tourists arrivals in Kerala Source: Department of tourism, Govt. of Kerala, 2012 The year 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 was against in 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. 89

33 Year Chapter III Socio-Economic Profile and Consumption Table 3.19 Earning from Tourism in Kerala (Rs. in crores) Foreign exchange earning Earning from domestic tourists Total revenue (Direct, Indirect) Source: Department of tourism, Govt. of Kerala, 2012 The total revenue generated from tourism comes to Rs 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 90

34 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 Migration Migration has been playing an important role in determining economic, social and cultural changes since many decades in Kerala. In , 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, 91

35 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) Source: Economic Review, Govt. of Kerala, 2011 The infusion of remittances has considerable impact on the Kerala economy. Remittances were Rs per household in 2011 and Rs per household in The net domestic product (NSDP) for Kerala was Rs crores for The remittance (Rs crores) comes to about 20 per cent of the NSDP of Kerala in The remittances were used by households for subsistence, acquisition or renovation of buildings, 92

36 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 Table 3.21 Country-wise Migrants of Kerala for SL. No. Country Keralites 1 America England Canada 13,695 4 Malaysia 12,052 5 Singapore 11,504 6 African countries Saudi Arabia 5, U.A.E Kuwait 12, Bahrain Oman Qatar Other countries 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. 93

37 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 nonemigrant and poor households as well (Ibrahim, 2009) 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 94

38 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 The continuous increase in consumer expenditure is shown in Table * An informal term for food that is of little nutritional value and often high in fat, sugar and calories. 95

39 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 1.Rural (46 th ) (50 th ) (56 th ) (61 st ) (63 rd ) (64 th ) (66 th ) 2. Urban (46 th ) (50 th ) (56 th ) (61 st ) (63 rd ) (64 th ) (66 th ) Kerala India Source: Economic Review (various years), Govt. of Kerala. Percentage of variation of Kerala over India Average Monthly Per Capita Consumer Expenditure (AMPCE) of rural population of Kerala registered a growth rate of 600% during 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 Kerala ranks first position with respect to MPCE in rural and urban areas in India. 96

40 State Chapter III Socio-Economic Profile and Consumption Table 3.23 Average Monthly Per Capita Consumer Expenditure Rural Average MPCE (Rs) Rank Urban Average MPCE (Rs) Andrapradesh Assam Rank Bihar Chattisgarh Gujrat Haryana Jaharkhant Karnataka Kerala Madhya Pradesh Maharashtra Orissa Punjab Rajastan Tamil Nadu Uttarpradesh West Bengal All India Source: NSSO-64 th round 97

41 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 (46 th ) (50 th ) (56 th ) (61 st ) (63 rd ) (64 th ) (66 th ) Source: Economic Review,(Various Years), Govt. of Kerala. 98

42 Table 3.25 Average Expenditure on Food and Non-food Items per Person for 30 days in Kerala ( ) Item Food (Rs) Non-food (Rs) Total (Rs) Rural Urban Source: Economic Review, 2011, Govt. of Kerala, p 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 respectively. In the urban sector, the average expenditure on food and non-food items per person for 30 days was and 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. 99