Market evolution of FMCG sector in Kerala. : Economic Review

Dinesh, T, Indranil, S.

Authors

Dinesh, T, Indranil, S.

Keywords:

Kerala economy, financial performance, fiscal deficit, state revenue, remittances, public expenditure, debt burden, economic growth, banking sector, investment climate.

Abstract

Financial performance reflects the economic health, efficiency, and sustainability of a region. Kerala, known for its high social indicators and remittance-driven economy, exhibits a unique financial structure compared to other Indian states. This paper analyzes Kerala’s financial performance by evaluating revenue patterns, expenditure structure, debt position, industrial contributions, banking penetration, and investment climate. It highlights key drivers such as tourism, remittances, SME sector, and service industries, while addressing challenges like high fiscal deficits, state debt burden, low manufacturing output, and unemployment. Using a descriptive research design and secondary data from RBI, Kerala Economic Review, and government finance reports, the study identifies strengths, weaknesses, opportunities, and threats impacting Kerala’s financial stability. The findings reveal that although Kerala maintains strong social development indicators, it requires structural financial reforms, improved industrial diversification, and enhanced revenue mobilization for long-term fiscal sustainability.

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