Thiruvananthapuram, Jan 16,2024: Kerala has successfully attracted over Rs 91,575 crore of new investment projects during 2018-19 to 2022-23, completed projects worth Rs 33,815 crores, and generated new job opportunities, direct and indirect, for about five lakh people, according to a study released on Tuesday.
The “Kerala Investment, Growth & Development 2018-19 to 2022-23” study, undertaken by the MSME Export Promotion Council, jointly with Confederation of Organic Food Producers & Marketing Agencies was released by the MSME EPC Chairman Dr D.S. Rawat, a former Secretary General of ASSOCHAM.
The study has stated that the total investment projects outstanding in 2022-23 were of Rs 403,770 crore and under implementation worth Rs 277,957 crore, and once these projects are completed, direct and indirect new employment opportunities are expected to be created for over seven lakh people.
During the period (2018-19 to 2022-23), pending projects of Rs.12,240 crore were revived.
Dr Rawat stressed the need for setting up a high powered committee under the chairmanship of Chief Secretary to expedite the clearances of the projects languishing for clearances from different departments and avoid the escalation in cost.
Kerala, which accounts for 2.8 per cent of India’s population and 1.2 per cent of land area, contributes more than 4 per cent to the GDP of India, he said, noting that thus the southern state;s per capita income is 60 per cent higher than India’s average.
This has fuelled internal migration to Kerala especially for low-end jobs, even as a large number of Keralites have immigrated mostly to Gulf countries.
The study says that Kerala has recorded an impressive industrial growth rate of 17.3 per cent in the financial year 2021-22, and the achievement of the manufacturing sector is even more impressive recording a growth rate of 18.9 per cent, higher than the national average.
These achievements helped the state register an economic growth of over 12 per cent in 2021-22.
The new investment projects announced by the private sector between FYs 2018-19 to 2022-23 were of Rs 23,232 crore and completed projects of Rs 9,590 crore. During the period 2022-23, the private sector total investment projects outstanding were of Rs 67,271 crore and under implementation of Rs 41,369 crore.
As per the CMIE data information on October 13, 2023, during 2022-23, the new investment projects announced by the private sector were of Rs 398 crore only, completed projects worth Rs 1,825 crore and revived old projects of Rs 3,216 crore.
Kerala, a front runner in the promotion, adoption and usage of information technology, has also become home to over 250,000 IT professionals in 2023, and this number has grown significantly from 78,000 in 2016 registering a growth rate of 31 per cent during the last six years. It is expected that Indian software product industry will touch $100 billion by 2025, and the state government is focusing on to tap the opportunity.
The companies are focusing on investing internationally to expand their global footprint and enhance their global delivery centres.
Kerala’s digital eco-system is supported by a strong government commitment to digital transformation, a growing start-up and strong industry participation in the economy, the report said, adding that the ambitious project launched by the state government with the aim of starting one lakh micro, small and medium enterprises (MSMEs) has led to the formation of around 1.34 lakh enterprises with an investment of Rs 8,110 crore and 2.87 lakh employment.
Currently, there are about 300 large and medium industries and 1,66,000 small scale units.