Kerala’s 2005 Human Development Report acknowledges the high level of Human Development in the state and outlays social justice and equality as the agenda for future development. Despite significant success in development, gender inequality is a continuing challenge for the state. Criticisms and cautions that Kerala would not be able to sustain its progress and levels of human development have generally proven to be unfounded, however, the Report recognizes that there remains a need to address critical issues, such as eliminating poverty and ensuring the quality of education. The Report highlights achieving true gender equality, social and job security and improving governance as key objectives and stresses that there must be attention to sustaining current levels of progress as well as increasing development. This Report serves to illustrate the ways in which Kerala has enjoyed success and can serve as an example, without ignoring challenges to be overcome.