Kerala economy records strong growth of 6.19% in real terms during 2024-25, according to the Economic Review 2025 tabled in the Kerala Legislative Assembly on Wednesday, January 28, 2026. The review highlights steady recovery despite fiscal pressures and calls for forward-looking financial strategies.
The report states that the Kerala economy records strong growth after adjusting for inflation, reflecting resilience across key sectors. At current prices, the Gross State Domestic Product (GSDP) expanded by 9.97%, showing healthy nominal growth during the financial year.
Meanwhile, the Gross State Value Added (GSVA), which measures the value of goods and services produced, rose to 6.59% in 2024-25. This marked an improvement over the 6.34% growth recorded in 2023-24, indicating gradual strengthening of the production base.
Moreover, the Economic Review stressed that Kerala’s long-term development goals depend on prudent fiscal management and innovation-driven policies. It underlined the importance of efficient use of resources to address mounting financial challenges.
In addition, the review noted that closer cooperation with the Union government will play a crucial role in sustaining growth momentum. Such coordination can help the State mobilise funds, improve infrastructure investment, and enhance social sector spending.
Overall, the report paints a cautiously optimistic picture, suggesting that with resilient planning and collaborative governance, Kerala can maintain economic stability while navigating fiscal constraints.
