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 Legislative 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.”
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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
