For a unique and culturally inspired touch at a 1st birthday celebration in Kerala, consider gifting small, intricately carved wooden handicrafts or toys that represent the local craftsmanship. These wooden items can range from traditional Kathakali masks to hand-carved elephants and boats, reflecting Kerala's rich heritage.

To complement this, include age-appropriate toys or baby accessories like soft toys, rattles, or onesies. To make the return gifts even more delightful, include some popular Kerala snacks or sweets like banana chips or coconut sweets in the gift bags. These thoughtful and culturally inspired choices will ensure that the return gifts are both entertaining and meaningful for the guests, making the 1st birthday celebration in Kerala even more special.