DNA Money Edit: The happy side of Kerala's recovery

The sun has finally shined over the flood-ravaged Kerala, but the state is staring at a long road ahead for recovery. Thousands of houses have been battered and several roads wrecked. New Delhi has offered Rs 600 crore while relief materials and other help are pouring in from across the country and abroad.

The state that runs on a thriving services sector is completely crippled for the time being. Tourism and hospitality are among the worst hit. Essentially a consumer state, Kerala has seen a substantial slip in consumption. There is no option but to forgo this year's festivities that were supposed to have begun with Onam this week.

Paddy, rubber and vegetable farming has seen large-scale destruction. Kuttanad, the rice bowl of the state, remains in the throes of a massive devastation. Kerala may be forced to buy more rice, veggies and fruits from neighbouring states.

The good news is that reconstruction and rehabilitation of affected families may invariably lead to a consumption boom. A large market for both consumer durables and non-durables, Kerala is likely to see a revival in the demand soon – for quickly replacing broken TVs, refrigerators and several other household items. Reconstruction of roads and houses will lead to a boom in jobs, mostly for labourers from outside the state.