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Its famed model of development, which is still touted as the most inclusive one, appears to have hit the buffers.

"The Kerala model is grinding to a halt because the social and political groups having fulfilled their original agenda now have no new agendas.

Many believe that the skewed nature of the economy - it has been called the "money order economy" - is to blame.

Road networks are extensive, but the state has few highways.

Electricity has reached nearly every village but the quality of service is poor.

Economists like KK George, who have spent a lifetime studying the "Kerala conundrum", say the state is facing a "second generation problem" of growth.

"Having fulfilled all millennium development goals, the state has no money left for higher investments.

And thanks to pioneering land reforms initiated by a Communist government in the late 1950s, the levels of rural poverty here are the lowest in India.

Decent state-funded health care and education even made it the best welfare state in India.And all but two districts of the state have a lower fertility rate than that needed to maintain current population levels.All this happened because of the region's early trading connections with the West - the Portuguese arrived here in the 15th Century, followed by the Dutch and then the British - and a long history of social reforms initiated by the missionaries and the kings of two princely states that were later integrated to create Kerala.It also has the highest literacy rate (more than 90%) and life expectancy in India, lowest infant mortality, lowest school drop-out rate, and a fairly prosperous countryside. In contrast to India's more prosperous states, like Punjab and Haryana, Kerala can boast a very healthy gender ratio - women outnumber men here.Life expectancy for women is also higher than for men, as in most developed countries.Economists draw parallels with the Philippines and Sri Lanka, which face similar problems.


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