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Synopsis Kerala's development over the last fifty suggests that is has been experiencing a dual pattern of development at the economic and social fronts. While the real sectors like agriculture and industry remained sluggish with low productivity levels, the service sector achieved rapid progress. On the one side. Kerala achieved better human development compared to other states of India, but on the other, in terms of employment and income dismal performance is noticed. The failure in generating employment opportunities has resulted in large scale migration of educated young labour force to other parts of the country and to foreign lands in search of jobs for many decades. The pattern of Kerala's development received much attention among academicians and researchers and the conceived wisdom paved the way for reiterating the coexistence of low per capita income and a high human development index--often referred to as Kerala Model' of development. The features associated with the Kerala Model have made almost all the discussions and studies on Kerala in the circumstances surrounding a fruitful debate. The debate centered around the question, if social development does not generate growth and employment opportunities, what will be the major implication of such a situation which can even create an explosive situation. The development experience of Kerala poses many challenges for the development of Kerala in the new millennium.