From its early days, and especially from the 1970s onward with directors like and G. Aravindan , Malayalam cinema forged a parallel cinema movement. This was heavily influenced by Kerala's high literacy rate, political awareness, and thriving literary scene.

Malayalam cinema’s DNA is deeply intertwined with Kerala’s high literacy rate and rich literary tradition. In the mid-20th century, the industry was heavily influenced by the movement. Adaptations of works by literary giants like Vaikom Muhammad Basheer , Thakazhi Sivasankara Pillai , and M.T. Vasudevan Nair bridged the gap between the printed word and the silver screen.