Historically, Anakkara, like much of the Periyar region, was largely covered in dense forests. The area's transformation began with the arrival of planters who recognized the fertile soil and favorable climate for cultivating tea, coffee, and spices. Over time, small settlements grew around these plantations, leading to the development of villages like Anakkara. The region's economy became heavily reliant on agriculture, particularly spice production. Anakkara has retained much of its traditional character, offering a glimpse into the past with its old plantation bungalows and time-honored agricultural practices. The area's proximity to the Periyar Tiger Reserve has also played a significant role in shaping its history and identity.