The importance and antiquity of education in Kerala are underscored by the state's ranking as among the most literate in the country. The educational transformation of Kerala was triggered by the efforts of the Church Mission Society missionaries, who were the pioneers that promoted mass education in Kerala, in the early decades of the 19th century. The local dynastic precursors of modern-day Kerala—primarily the Travancore Royal Family, the Nair Service Society, Sree Narayana Dharma Paripalana Yogam and Muslim Educational Society (MES)—also made significant contribution to the progress on education in Kerala. Local schools were known by the general word kalaris, some of which taught martial arts, but other village schools run by Ezhuthachans were for imparting general education. Christian missionaries and British rule brought the modern school education system to Kerala. Ezhuthu palli was the name used in earlier times. The word was derived from the schools run by the Buddhist monasteries. For centuries villages used to set up an ezhuthupally or ashan pallikoodam with one or two teachers. Students used to go this school from nearby areas and learn languages, literature, mathematics, grammar etc. After completing this students may continue study about specific subjects such as ayurveda, astrology, accounting etc. Censuses during 1800 shows that Travancore, Cochin, Kannur areas have many such schools. Even name list of ashans were used to be published along with the census.

The economy of Kerala is the 9th largest in India, with an annual gross state product (GSP) of ₹9.78 lakh crore in 2020–2021. Per-capita GSP of Kerala during the same period is ₹257,711 (US$3,200), the sixth largest in India. In 2019–20, the tertiary sector contributed around 63% of the state's GSVA, compared to 28% by secondary sector, and 8% by primary sector.