In recent years, Kerala has liberalised its mixed economy, allowing greater participation by the free market and foreign direct investment.

Only a few major corporations and manufacturing plants choose to operate in Kerala. This is mitigated by remittances sent home by overseas Keralites, which contributes around 20% of state GDP.

Kerala's nominal gross domestic product (as of 2004–2005) is an estimated Rs 894,51 crore (Rs 894.51 billion). The state's human development index and standard of living statistics are the nation's best.

The state's traditional industries manufacturing coir, handlooms, and handicrafts employ about one million people. Kerala's gross domestic product (as of 2006) is an estimated Rs 894.51 billion.

Image: Women from Kerala make a traditional pookalam or floral art during a contest in New Delhi. | Photograph: Manan Vatsyayana/AFP/Getty Images