Kerala, for long, has been among the top tourist destinations in India. The state government has, in recent years, rolled out various initiatives as it also looks to become an attractive destination for businesses and investors, especially in the technology space.
Speaking with THE WEEK, Kerala's law and industries minister P. Rajeeve stated that the southern state has received Rs 46,000 crore worth of investment in the last three years. Of this investment, Rs 23,000 crore has come in from micro, small and medium enterprises alone as a part of the state government's efforts to channel local savings into investments and, in turn, boost employment and entrepreneurship.
"We had decided to observe 2022-23 as a year of enterprises. Within 2.5 years, we could establish more than 3.18 lakh small enterprises in the state. At times, gold ornaments transformed into industrial capital. Sometimes, deposits in banks transformed into industrial capital... More than 7 lakh new employment opportunities have been created in new small enterprises," said Rajeeve.
Kerala, for long, has been associated with militant trade unionism. However, the LDF government in Kerala, led by Chief Minister Pinarayi Vijayan, has, over the last few years, taken several proactive steps and reforms in order to attract new investments.
"Anybody can start an industry in the state of Kerala if the investment is up to Rs 50 crore, that is an MSME category, within a minute. The principal approval can be obtained online. And for big companies, there is a composite license that includes all licenses from different departments. The composite license should be given within 7 days after submitting the application along with all relevant documents," Rajeeve pointed out.
He further added that there is also a statutory grievance address mechanism. Grievances related to establishing or running any industry can be submitted online, and officials can even be penalised if the complaints are not addressed within a stipulated time. Land allotment policies have been simplified too.
Such measures are bearing fruit. Kerala emerged as the number one state in terms of ease of doing business reforms according to the rankings of the Union Ministry of Commerce and Industries released earlier this year. Just three years back, it was in the 28th position.
Kerala has identified 22 priority sectors under its industrial policy, which includes aerospace and defence, new technologies like Artificial Intelligence and robotics, ayurveda, food technology, life sciences, medical devices, logistics, renewable energy, rubber products, and tourism, among other things.
Kerala, a land of highly skilled workforce
Rajeeve notes that Kerala's biggest advantage is its highly skilled workforce. However, the state is also constrained due to the limited availability of land resources. It also faces climate-related challenges. Rajeeve stresses that the government will always bat for responsible investment. Emerging technology will be a big focus area.
"Vertical constructions for big global capability centres (GCC), and global technological centres (GTC)...These are the best options for Kerala. AI, machine learning, big data analysis, robotics, blockchain technology and graphene—these are the emerging areas. Cutting-edge technology is suitable for the state. Many big players have started their operations," he said.
Tech giant IBM, for instance, recently opened its biggest Gen-AI innovation centre in the country at Kochi. US-based NOV has opened its digital technology entre in Kochi too. In October, Irish semiconductor company Trasna opened its centre in Thiruvananthapuram's Technopark. Earlier in 2023, French defence major Safran Group had opened a unit in Kerala.
"Within 10-15 years, Kerala can be the destination of high-tech and knowledge industries," said Rajeeve.
The state is also expecting big investments in the green hydrogen space, and discussions in this regard have been ongoing with big companies, he noted. Earlier this year, Kerala received proposals worth some Rs 72,000 crore for setting up green hydrogen and green ammonia facilities in the state.
For decades, many people in Kerala have migrated to other parts of the country or abroad, particularly to the Gulf countries, for jobs. Rajeeve says the priority is to ensure employment opportunities for today's youth in the state.
