Gujarat Development Model vs Kerala Development Model - A Complete Study

Updated by: Alex George on April 10, 2025

Last week, I attended a tech conference on Information Technology and India's development. The conference was in Noida, and it was a one-day program. It was interesting, and many IT professionals and financial experts attended and shared their views.

I went to Noida with Ashish Mudgal and Senthil. Many of my readers know them, but if you are new, let me introduce them. Ashish Mudgal is a senior network engineer at CoreNetworkZ Tech Solutions. Senthil is a Chartered Accountant and a financial expert.

It was a nice conference, and we discussed the role of Information Technology in India's development. One of the out-of-the-topic discussions was the comparison of two development models followed by two Indian states. I guess some of my readers sensed the topic.

Kerala Model vs Gujarat Model

Yes, you are right. We compared the growth models followed by Kerala and Gujarat. We discussed the plus and minus of the development approach both states followed.


Who All Participated in the Discussion?

Amit Patel and Rakesh Jhaveri joined the discussion to support the Gujarat Development model. Melvin Joseph and Kamaljith Viswanathan supported the Kerala Development model.

Let me explain who they are and their backgrounds.

Amit Patel runs a website development company in Ahmedabad, and Rakesh Jhaveri is an auditor. Melvin Joseph worked with top IT companies in India. Now, he is planning to start a tech startup. Kamaljith Viswanathan is a retired bank officer.


What is The Importance of Comparing the Gujarat Model With the Kerala Model?

Well, it is a valid question. Why should someone spend time discussing the growth models adopted by two Indian states in a pan-India seminar?

But the reality is different. Let me explain the reasons.

In contemporary India, while considering development, Kerala and Gujarat are the leading states. I have been watching a lot of heated arguments from different corners about the comparison of the models of development adopted in these two Indian states.

Some say the Kerala Model of Development outshines the Gujarat Model of Development, but others argue the opposite. Not only the ordinary people but also the world-famous economists are taking part in this debate.

Other Indian states can learn a lot from Kerala and Gujarat.

It is an interesting discussion, and it includes the overall economic conditions, GDP, investments attracted, number of industries present, healthcare, wealth generation, literacy, etc.

I believe you understand the importance of studying Kerala and Gujarat Development models.


Gujarat Development Model vs Kerala Development Model

Let us compare both growth models with facts and statistics. After reading this section, you will understand which growth model is better.

  1. Compare GDP Growth Rate of Gujarat With Kerala

    Rakesh Jhaveri started the discussion by comparing the GDP growth rates of Gujarat and Kerala.

    I understand that most readers of CoreNetworkZ Tech Solutions are techies and not financial experts. So, let me explain the term GDP.

    GDP = Gross domestic product

    The Gross domestic product (GDP) is the net market value of all final goods and services produced in a region.

    Rakesh Jhaveri noted that while comparing the GDP of the Indian states Gujarat and Kerala, Gujarat performs better than Kerala. Senthil CA agreed with him.

    Financial YearGDP of GujaratGDP of Kerala
    2023-2024INR 25,62,975 croreINR 11.3 lakh crore
    2022-2023INR 22,03,062 croreINR 10,46,188 crore
    2014-2015 INR 895,202 CroreINR 519,896 Crore
    2013-2014INR 806,745 CroreINR 462,916 Crore
    2012-2013INR 712,123 CroreINR 412,313 Crore
    2011-2012INR 594,563 CroreINR 307,906 Crore
    2010-2011INR 521,519 CroreINR 263,773 Crore
    2009-2010INR 431,262 CroreINR 231,999 Crore

    Amit Patel said that Gujarat supports industries, and many investors choose Gujarat over other states. Kamaljith Viswanathan said Kerala is improving its ease of doing business rank and is one of the best startup-friendly states in India.

  2. Comparing Kerala With Gujarat on HDI

    Melvin Joseph said that he stayed in most Indian states, and no other state can beat the living standard of Kerala. Kamaljith Viswanathan agreed with him and said the HDI of Kerala is better than the HDI of Gujarat.

    HDI = Human Development Index

    Human Development Index (HDI) is the best unit for measuring the quality of life of people residing in a particular region.

    By comparing the HDI of the two regions, we can easily find out people in which regions live in better living conditions.

    YearHDI of Kerala HDI of Gujarat
    20240.7900.717
    20150.7120.6164

    After comparing the HDI of Kerala with the HDI of Gujarat, anyone can see that people's living standard in Kerala is superior.

  3. Comparing The Literacy Rate Of Kerala With Gujarat

    Now, let us compare the literacy rates in Gujarat and Kerala. Melvin Joseph started this point, and while considering the literacy rate, Gujarat is far behind Kerala.

    YearLiteracy rate in Kerala Literacy rate in Gujarat
    201896.2%82.4%
    201192.28%79.31%
    200186.66%69.14%

    The chart shows the historical literacy rate in Kerala and Gujarat.

  4. Comparison of Unemployment Rate Among Gujarat & Kerala

    Gujarat has the lowest unemployment rate in India. Kerala is one of the states with the highest unemployment rate in India. The chart below shows the unemployment rate (number of unemployed people per 1000), ranked among the other Indian states.

    YearUnemployment Rate - Kerala Unemployment Rate - Gujarat
    202329.9%3.1%
    2015-16125 (3rd Position)9 (29th position)

    All four panelists agreed with this point.

  5. Comparison of Life Expectancy In Kerala with Gujarat

    The fifth point was the life expectancy. Kamaljith Viswanathan started the discussion, and other panelists joined. Ashish Mudgal and Senthil also joined soon.

    YearLife Span - Kerala Life Span - Gujarat
    202477.28 years69.9 years
    2010-1474.968.7
    2002-0674 64.1

    While considering the expected life span of people in Kerala and Gujarat, Kerala performs better. The people of Kerala have the highest life expectancy in India.

  6. Comparison of Suicide Rate Among Gujarat and Kerala

    While considering the suicide rate in Gujarat and Kerala, Gujarat has a lower suicide rate compared to Kerala. This chart shows the suicide rate in Kerala and Gujarat per 100000.

    YearSuicide Rate in Kerala Suicide Rate in Gujarat
    201224.311.8
  7. Comparing The Road Density of Kerala and Gujarat

    Road density in a particular region tells the accessibility of the people living there. If we compare the road density of Kerala and Gujarat, Kerala is better.

    YearRoad Density of Kerala Road Density of Gujarat
    201637.49m/km^216.55 m/km^2
  8. Telephone Density in Kerala & Gujarat

    Kerala and Gujarat are two leading states with high telephone density in India. Kerala has the highest telephone density in India.

    YearTelephone Density of Kerala Telephone Density of Gujarat
    201495.96%93.34%
  9. Comparing The Infant Mortality Rate in Kerala & Gujarat

    Infant Mortality Rate in Gujarat is higher than in Kerala. Melvin argued that everybody understands Kerala is far better in the Healthcare sector.

    YearIMR of Kerala IMR of Gujarat
    20131236
    20121238
    20111241
    20101344


So, Which Development Model is Better?

I will not force my views on whether development in Gujarat or Kerala is better in this article. However, I understand that after reading the arguments from the four panelists, my readers can understand the better model.

I shared statistical data published by Government agencies and reputable NGOs to support the views of all panelists.

Once you have completed the reading, you won't face any issues to decide the winner. I leave the judgment of whether the Kerala Development Model or the Gujarat Development Model is better for the readers.


Reference

  1. https://www.ibef.org/states/gujarat-presentation
  2. http://www.thehindu.com/news/national/kerala/kerala-figures-among-high-teledensity-states/article8177628.ece
  3. http://niti.gov.in/content/infant-mortality-rate-imr-1000-live-births
  4. www.firstpost.com/business/andhra-telangana-gujarat-best-in-ease-of-doing-business-niti-ceo-3799445.html

14 comments:

  1. Sandeep Patil4:08 AM

    Kerala had an early head start but Gujarat is catching up fast. Sooner we will overtake.

    ReplyDelete
    Replies
    1. Hello Sandeep,

      Welcome to CoreNetworkz Tech Solutions.

      Delete
  2. Hari Krishnan7:07 PM

    No other Indian states are near Kerala on Human Development. Gujarat is not an exception. We can clearly say which is the best state in India. That is Kerala.

    ReplyDelete
    Replies
    1. Hello Hari,

      Thank you for your comment.

      Delete
  3. 1. The very fact that Kerala is being compared with Gujarat (that could boast of having the "Manchester of the East" as its capital in the 1950s, when Kerala was among the poorest States of India) shows:-

    a) Kerala has moved a long way towards economic development

    b) Gujarat could not take much advantage of the early lead.

    2. He compares the GDP of Kerala with that of Gujarat! Note -- "GDP Value", not Per Capita GDP! And there lies the flaw:-

    a) If we look at GDP Value -- UP's is larger than Gujarat! Because UP has a larger population!! Thus what is significant is Per Capita GDP. That is, GDP divided by the Population.

    b) And voila! When we consider Per Capita GDP, Kerala leaps ahead of Gujarat!

    Per Capita GDP of Gujarat
    (taking 6.27 crore as the population)
    1,42,775.44
    1,28,667.46
    1,13,576.24
    94,826.63
    83,176.87
    68,781.82

    ReplyDelete
  4. 1. The very fact that Kerala is being compared with Gujarat (that could boast of having the "Manchester of the East" as its capital in the 1950s, when Kerala was among the poorest States of India) shows:-

    a) Kerala has moved a long way towards economic development
    b) Gujarat could not take much advantage of the early lead.

    2. The blog compares the GDP of Kerala with that of Gujarat! Note -- "GDP Value", not Per Capita GDP! And there lies the flaw:-

    a) If we look at GDP Value -- UP's is larger than Gujarat! Because UP has a larger population!! Thus what is significant is Per Capita GDP. That is, GDP divided by the Population.

    b) And voila! When we consider Per Capita GDP, Kerala leaps ahead of Gujarat!

    Divide all values of GDP of Gujarat with the Population (6.27 Crore); and then COMPARE this with the value of GDP of Kerala with the Population (3.48 Crore) -- and we see that in the early years Gujarat was ahead of Kerala. But since 2012-2013, Kerala has forged ahead of Gujarat!

    ReplyDelete
  5. 1. The very fact that Kerala is being compared with Gujarat (that could boast of having the "Manchester of the East" as its capital in the 1950s, when Kerala was among the poorest States of India) shows:-

    a) Kerala has moved a long way towards economic development
    b) Gujarat could not take much advantage of the early lead.

    2. The blog compares the GDP of Kerala with that of Gujarat! Note -- "GDP Value", not Per Capita GDP! And there lies the flaw:-

    a) If we look at GDP Value -- UP's is larger than Gujarat! Because UP has a larger population!! Thus what is significant is Per Capita GDP. That is, GDP divided by the Population.

    b) And voila! When we consider Per Capita GDP, Kerala leaps ahead of Gujarat!

    Divide all values of GDP of Gujarat with the Population (6.27 Crore); and then COMPARE this with the value of GDP of Kerala with the Population (3.48 Crore) -- and we see that in the early years Gujarat was ahead of Kerala. But since 2012-2013, Kerala has forged ahead of Gujarat!

    ReplyDelete
  6. @ Unknown

    Thanks for providing such a piece of detailed information.

    ReplyDelete
  7. Sandhya Sharma1:19 PM

    A great work Alex. Thanks.

    ReplyDelete
    Replies
    1. Hi Sandhya,

      Thank you for your comment.

      Delete
  8. Akhil Kamath1:32 PM

    You wrote a detailed article. It helped me in my assignment. Thank you.

    ReplyDelete
    Replies
    1. Hello Akhil,

      Thank you for your comment.

      Delete
  9. Ineya S Nair1:37 PM

    Good work.

    ReplyDelete
    Replies
    1. Hello Ineya,

      Thank you for your comment.

      Delete

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