Kerala is a blessed state. It grows some of the most lucrative crops - virtually all spices, herbs, tea, coffee, rubber, coconut and cashew nut. Then there is the amazing natural beauty and ayurveda that brings in the tourism moolah. Although they claim to be communists, I think they lean more towards socialism as a government. Trade unions are a double edged sword. They are good in the sense they prevent exploitation and ensure fair wages, which ensures the living standards are at least a certain level.
I don't think Malayalis as a people are communist. They are the most prolific businessmen in the south. Very enterprising people. Their government also keeps alternating between Communist and Congress.