Kerala's economy is distinctively driven by the services sector, agriculture, and substantial remittances from Non-Resident Keralites (NRKs) living in the Middle East and elsewhere. The Gross State Domestic Product (GSDP) is estimated to be over ₹10 lakh crore (approximately $130 billion USD).
While the state has achieved exceptional social indicators and a high standard of living, it faces challenges such as high unemployment among educated youth and a relatively smaller manufacturing base compared to other southern Indian states. To combat this, the state is actively investing in knowledge-based industries, IT infrastructure, and startup ecosystems, aiming to transition into a knowledge economy.