The Kerala economy posted “strong growth” in 2024-25 with the Gross State Domestic Product (GSDP) clocking 6.19% growth in real terms (adjusted for inflation), the Economic Review 2025 tabled in the State Assembly on Wednesday (January 28, 2026) noted, while highlighting the need for “resilient, innovative and forward-looking financial strategies” to tackle prevailing fiscal challenges.
At current prices (unadjusted for inflation), the GSDP clocked a growth of 9.97%. The State’s Gross State Value Added (GSVA) – the total value of goods and services produced in the economy – rose to 6.59% in 2024-25 as against 6.34% in 2023-24. The Economic Review observed that the “realisation of Kerala’s developmental aspirations and its path to economic recovery will significantly hinge on collaborative engagement with the Union government and the prudent management of available resources.”
Prepared by the State Planning Board, the document was tabled in the House ahead of the tabling of the 2026-27 State Budget on Thursday (January 29).
Sectors show growth
“Spillovers of proactive policy interventions” have strengthened growth across sectors, which continue to be dominated by the services sector, the document said. “The growth of GSDP across sectors reveals strong positive growth in 2024-25, the same as in 2023-24. The primary sector posted a robust growth of 2.36% in 2024-25 in real terms as against 0.24% recorded in 2023-24. The secondary sector grew at 7.87% in 2024-25 in real terms, as against 9.74% in 2023-24,” it said.
