The definition of literally rate is the ratio of population over 7 that can read, write and do arithmetic and apply it in their lives. These numbers are over inflated tbh because the standards to measure them are pretty debatable. Kerala may have 90% literacy rate, but the average literacy rate of India is supposed to be 80%+.
Literacy mostly means Reading skills. Goes a long way in a poor country with an abysmal record for primary education. Kerala also has a Higher % of school graduation compared to rest of India.
Coming literacy, what does that mean? They all know how to read & write in a particular language? OR they have passed minimum undergrad?