Kerala has agrarian economy with a major portion of the population living on cultivation of various seasonal crops, cash crops and other products from horticulture. The state’s economy is described as a democratic socialist welfare economy.

The state has also significant contribution to the foreign currency deposits in India. About 20% of the State Domestic Product (SDP) comes from the Keralites working abroad, mainly in the Middle East. Gross income from the conglomerates also affects the economy of the state. There are corporate offices of five major conglomerates in Kerala. These are: Kochi Refineries, Federal Bank, South Indian Bank, FCI OEN Connectors and Harrisons Malayalam.

In last few years, Kerala has shown a slow economic progress as compared to the neighboring states of Karnataka and Tamil Nadu. Kerala’s Per Capita income in 2002-03 was Rs 25,764. The Government of Kerala is taking all necessary steps to provide a better economic status to the state.