Trade Analytics

Industrial Development & Economic Growth in Kerala

Latest update: February, 2016

Economic Snapshot: GSDP of Kerala

Kerala's gross state domestic product (GSDP) was at US$ 68.5 billion over 2014-15.

Economic Snapshot: GSDP of Kerala

Economic Snapshot: NSDP of Kerala

Kerala's net state domestic product (NSDP) was at US$ 59.70 billion over 2014-15.

Break up of outstanding investments in Kerala


February, 2016

Kerala is known as God’s own country. It is one of the few states to have marketed its natural beauty successfully to the leisure tourism sector. The state’s unique heritage and cultural diversity have helped attract tourists from the world over. Its strategic location on the trans-national trade corridor, rich natural resources, and simple and transparent procedures make the state favourably suited for investments in major sectors such as tourism, IT/ITeS, manufacturing and mining.

Kerala holds second rank in the Investment Climate Index followed by Karnataka, as per a policy research working paper by the World Bank. The state stands second due to its world-class infrastructure and well-trained human resource pool Kerala's traditional industries include handloom, cashew, coir and handicrafts.

Kerala is a leading agricultural state in the country and the largest producer of rubber, pepper, coconut and coir. It has the first international transshipment terminal in India, having a design capacity of around 4 million TEUs and providing better connectivity between Kerala and other ports in India.

Between 2004-05 and 2014-15, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 9.9 per cent to US$ 68.5 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 9.84 per cent to US$ 59.84 billion.

The state has 32 special economic zones (SEZs) with formal approvals and 25 notified SEZs. A cyber-park, spread over a 68-acre campus, is being developed in Kozhikode. Kerala has been promoting knowledge-based industries such as IT/ITeS, computer hardware and biotechnology. It is the first state having a technology park with CMMI level 4 quality certification and a world-class IT campus in Thiruvananthapuram.

The following are some of the major initiatives taken by the government to promote Kerala as an investment destination:

  • Under the 12th Five Year Plan from 2012 to 2017, the state Government approved an investment of US$ 364.9 million for development of port infrastructure facilities for handling cargo and passenger transport.
  • The National Coir Research & Management Institute (NCRMI), a state government organisation, is following up on a potential deal with Saudi Aramco for a new technology that can help cultivate crops in saline and arid conditions.
  • In the 2015-16 budget, the state government announced plans to invest US$ 0.16 million for facilitating scholarships to the coir worker’s children who secure admission in professional courses.
  • As per Budget 2015-16, Government announced plans to invest US$ 3.3 million for the expansion of the rubber industry in Kerala. The government is also offering an exemption on taxes, which is applicable on the purchase of rubber in the state.
  • An outlay of US$ 4.14 million was proposed by the state Government for development and improvement of state highways including relaying of 400 km length road during 2015-16.
  • The electronic hub proposed at Kochi is a prestigious project of the Government of Kerala to promote electronic hardware manufacturing and assembling units and research and development (R&D) centres, and to support infrastructure for the same.
  • The State Tourism Department is developing eco-friendly, rural tourism packages in Kumarakom, Wayanad, Kovalam and Muziris heritage circuit.
Kerala State Presentation

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Kerala Map


x IBEF : India Brand Equity Foundation