Kerala, renowned for its exceptional social indicators like world-class education and health, faces a persistent paradox of low per capita income despite high human capital, prompting a critical examination of its economic model. While the state has excelled in investing in its people, leading to high literacy and life expectancy, it struggles to translate this educational dividend into sustained domestic economic growth, with capital generation largely occurring elsewhere and only partially returning through remittances, a situation exacerbated by significant challenges in the ease of doing business. Despite impressive official Ease of Doing Business rankings, the article highlights that actual ground realities for businesses are hampered by arbitrary inspections, unpredictable enforcement, delayed approvals, and weak contract enforcement, suggesting the current "reforms" are input-focused rather than outcome-driven.
