As Kerala looks to shun its older image of being an unfriendly destination for big investments, the state is undertaking initiatives like land pooling, building industrial townships, and setting up grievance redressal mechanisms, Chief Minister Pinarayi Vijayan said in a written interview to Soumyarendra Barik.
He also spoke about the competition with other southern states like Tamil Nadu and Karnataka, and how the state was looking at attracting manufacturing activities.
Edited excerpts:
What’s the overarching vision for boosting trade and investments in Kerala, and what’s the state government’s role in it?
Kerala aims to position itself as a knowledge-based economy and a hub for high-tech manufacturing and service industries. The state government acts as an enabler and is committed to facilitating and supporting investors through proactive policies and infrastructure development. We have already made Kerala’s Ease of Doing Business atmosphere the best in the country.
Kerala has expanded its industrial infrastructure with the development of techno parks, food parks, EV parks, industrial estates, and the Palakkad corridor. Kerala is leveraging its strategic location to enhance its logistics connectivity with projects such as the Vizhinjam Port.
Our Export and Logistics Park Policy and Industrial Policy focus on strengthening trade infrastructure, boosting exports, and attracting investments. The entire physical infrastructure will supplement Kerala’s integrated industrial ecosystem. The Government is implementing land pooling initiatives and developing industrial townships to create a seamless trade and investment environment all across the State.
Investor facilitation is the key to our success. K-SWIFT, Kerala’s single window interface for fast and transparent clearances ensure efficient business approvals. Digital governance reforms and a structured grievance redressal system have been put into place to ensure investor-friendly processes.
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At a time when Kerala’s neighbours Tamil Nadu and Karnataka have established themselves as big manufacturing bases, how does Kerala fit into the picture?
Kerala does not compete with our neighboring states. In fact, we complement them. While Tamil Nadu has an advantage in land-intensive large-scale manufacturing due to its sheer size, Kerala focuses on technology-driven, high-value, low-volume industries. Kerala is focusing on industries that rely on innovation, technology, and skilled manpower rather than vast land tracts.
One of our key strengths is our highly skilled workforce. A leading human development index and a talent-rich ecosystem make Kerala ideal for knowledge-intensive industries. Another strength is that we have a strategic industrial focus. Kerala prioritises sectors such as medical devices, aerospace and defence, food processing, IT, and GCC based industries.
On top of all of this, Vizhinjam Port and the seamless multimodal connectivity available in the state strengthen Kerala’s position as a global trade gateway and logistics hub.
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Is the tech services sector an area that the state is keen on attracting?
Yes, Kerala is already a leader in the services sector and is committed to further strengthening it. We have the best startup ecosystem in the country. Kerala has emerged as a leader in innovation and entrepreneurship. As I have already mentioned, we have the best Ease of Doing Business atmosphere in the country.
Kerala continues to be a pioneer in tourism, IT, and digital innovation. Our future growth plans include expanding digital and fintech ecosystems, strengthening tourism infrastructure and medical tourism initiatives and enhancing IT parks, AI, and emerging tech-driven industries.
Are there any plans to boost electronics manufacturing in the state?
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Kerala already hosts key electronics companies. We have identified electronics and hi-tech manufacturing and ESDM (Electronics System Design & Manufacturing) as priority sectors under our Industrial Policy. We are actively attracting new investments in the semiconductor, PCB manufacturing, and embedded systems sectors.
We are setting up dedicated industrial clusters for the focused development of electronics manufacturing hubs. We are strengthening R&D in electronics. Keltron (Kerala State Electronics Development Corporation) is spearheading advancements in R&D and innovation.