Why invest in Kerala?

Kerala, a strip of lush greenery tucked in between the Western Ghats and the Arabian Sea in the southwest coast of India, is blessed in every regard. Be it in terms of beauty, natural resources, a unique topography or climate, this paradise has it all.

  • This land also boasts of high literacy rates and sex ratio, vibrant cultural diversity, a well developed tourism sector and ranks second in the Investment Climate Index as well.
  • With 4 international airports, 18 major and minor ports and excellent rail and road systems, Kerala is also one of the most connected states in India. It has the 1st international transshipment terminal in India with a design capacity of around 4 million TEUs and provides better connectivity between Kerala and the rest of the world.
  • The state is among the prominent Indian states to have achieved 100 per cent rural electrification. As of July 2018, Kerala had an overall tele-density of 124.17 per cent.
  • According to the Telecom Regulatory Authority of India (TRAI), as of July 2018, Kerala had 43.05 million wireless subscribers and as of March 2018, 19.80 million internet subscribers.
  • With a majority of schools, local bodies and government offices being computerised and ITC access points available in every nook and cranny of the state, Kerala is steadily becoming a knowledge based economy.
  • Being an environmentally sensitive state, Kerala is adopting business models that are technology oriented, environment friendly and less space consuming while generating employment and revenue.
  • It has been promoting knowledge-based industries such as IT/ITeS, computer hardware and biotechnology and is the first state having a technology park with CMMI level 4 quality certification and a world class IT campus in Thiruvananthapuram.
  • The state’s high economic growth and abundance of skilled, semi skilled labour are some of the aspects that make it a land of immense potential for prospective investors. To add to it the huge advantage that the state is free of all labour related issues.
  • Per capita consumption expenditure in rural Kerala is twice that of rural India. The per capita consumption expenditure in urban Kerala is 1.3 times that of urban India. Therefore, Kerala offers an ideal market for several industrial activities. Kerala’s geo-strategic location on the international maritime route, with seaports like Vallarpadam and the upcoming Vizhinjam, provides a unique opportunity for export oriented industries. There is also a powerful and vocal Kerala diaspora across the globe.
  • MSMEs are complementary to large industries as ancillary units, and this sector contributes significantly to the socio-economic development of the country as well as the socio-economic development of the State.
  • The Directorate of Industries and Commerce (DIC) acts as a facilitator for the growth of the MSME and traditional industrial sectors in Kerala. Apart from the DIC, KSIDC, KINFRA, K-BIP and RIAB are other industry promotional agencies.
  • According to DIC, 15535 new MSME units were started in Kerala in 2016-17 with a total investment of 13871.173 million rupees, and generating employment for 57,445 persons.
  • An ideal destination for businesses which require less space whilst generating higher employment and revenue, the state has made sizable growth in all areas. However, the most significant strides have been made in IT, electronics, furniture, apparel and garments, food processing, wellness and healthcare, bio science and technology. Geojit, KIMS hospitals, Lakeshore Global Lifecare and Appollo are all a few of the success stories built on the fertile grounds of Kerala.
  • The Kerala Startup Mission has played a pivotal role in development, orchestrating every piece of a vibrant Startup ecosystem.
  • The State owns and operates 3 techno parks. There are also techno parks operated by private groups like Leela, Lulu, and ULCCS. Electronic manufacturing clusters, furniture clusters-initiated under the cluster development program, large class apparel parks initiated by KINFRA in Trivandrum, Kannur and Palakkad, the KSIDC-Kinfra Mega food parks, MoFPI assistance through State Food Processing Mission KINFRA, biotechnology zone at Kalamassery and Bio 360 Life Science Park at Trivandrum by KSIDC are some of the major industrial initiatives that have been undertaken. The presence of R&D institutions like TBGRI, SCTIMST, RCC, RGCB, NIIST etc. are testaments to the promising business climate for these sectors in the State.
  • Kerala has a wide range of fiscal and policy incentives for businesses under the Industrial and Commercial Policy and has well-drafted sector-specific policies. E-governance initiatives have also further strengthened transparency and bridged the digital divide.
  • In order to create a conducive environment for investors and improve the ease of doing business in the state, the Government of Kerala has now developed a single window online clearance mechanism in the State - KSWIFT. It is an integrated platform for entrepreneurs to apply for all requisite clearances in the State and also provides independent and composite licenses. A provision for deemed clearances has also been introduced.
  • Kerala recognizes infrastructure, capacity building, and human capital development as the strongest and most effective tools for developing an innovation eco system for businesses. It therefore comes as no surprise that today the State has become a land with incredible potential for investors.