Kerala Economy: Tourism, Industries, Agriculture & Growth

Recent Development in Key Sectors

• The Kerala Government, supported by the Pradhan Mantri Matsya Sampada Yojana, secured central funding of Rs. 1,346 crore (US$ 151.6 million) to upgrade the fisheries sector for FY25, including the construction of seven modern fishing harbours, nine integrated modern coastal fishing villages, six climate-resilient villages, two advanced fish markets and the deployment of 6,500 satellite-based transponders to enhance fishermen’s safety at sea.
• In 2025, the central government has approved 48 new seaplane routes in Kerala under the Regional Connectivity Scheme (RCS)-UDAN, aimed at linking the state’s four international airports with key back-water and lake destinations like Kovalam, Kumarakom and Vembanad.
• At the Kerala Urban Conclave held in September 2025, Chief Minister Mr. Pinarayi Vijayan announced that Kerala’s IT exports are nearing Rs. 1,00,000 crore (US$ 11.27 billion).
• In June 2025, Rubber Board and Spices Board have signed a Memorandum of Understanding with the Kerala Climate Resilient Agri‑Value Chain Modernisation (KERA) Project to modernise value-chains for rubber and cardamom cultivation in Kerala under a World Bank-supported initiative running from 2025-29.
• Under the State Budget FY26
  • Government allocated Rs. 2,870 crore (US$ 336.4 million) has been allocated as capital expenditure on roads and bridges. The Kochi Metro Rail system has been allocated Rs. 289 crore (US$ 33.9 million)
  • The government proposed Rs. 3,149 crore (US$ 369.1 million) has been allocated towards government primary schools, of which Rs. 3,147 crore (US$ 368.9 million) is for wages and allowances and Rs. 644 crore (US$ 75.5 million) has been allocated towards the PM Poshan Shakti Nirman scheme.
  • Government allocated Rs. 2,688 crore (US$ 315.1 million) has been allocated for allopathic health services in urban areas, and Rs. 1,379 crore (US$ 161.6 million) in rural areas.
  • Government allocated funds worth Rs. 1,539 crore (US$ 180.4 million) has been allocated for crop husbandry and Rs. 600 crore (US$ 70.3 million) has been allocated towards the rubber production incentive scheme.
• Under the State Budget 2024-25, the government proposed Rs. 24,256 crore (US$ 2.91 billion) for improvements in education, sports, arts, and culture.
• In the State Budget 2024-25, the government allocated funds worth Rs. 1,720 crore (US$ 206.2 million) for urban development projects in Kerala, out of which Rs. 1,087 crore (US$ 130.3 million) has been allocated towards assistance to municipalities and municipal corporations.
• In the 2024-25 State Budget, Rs. 110 crore (US$ 13.2 million) has been allocated for urban water supply.
• In July 2024, the Ministry of Rural Development has approved the construction of 33 roads spanning 159.86 km in Kerala under the Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III), aiming to enhance rural connectivity and boost economic growth. The project involves an estimated investment of Rs. 160.56 crore (US$ 19.3 million).
• Under the State Budget 2024-25, the government allocated Rs. 2,931 crore (US$ 351.4 million) for roads and bridges.
• In March 2024, Kerala is set to make a significant impact in digital entertainment with the launch of CSpace, India’s first government-backed OTT platform.
• In January 2024, ReNew plans to invest Rs. 26,400 crore (US$ 3.17 billion) in a green hydrogen project in Kerala. The project aims to produce 220 kilo-tonnes per annum (KTPA) of green hydrogen, which will be used to generate 1,100 KTPA of green ammonia.
• In January 2024, Prime Minister Mr. Narendra Modi inaugurated the Kochi-Lakshadweep islands submarine optical fiber connection (KLI-SOFC) project in Kavaratti, Lakshadweep, today. This inauguration is part of developmental projects exceeding Rs. 1,150 crore (US$ 138.1 million) across technology, energy, water resources, healthcare, and education sectors.
• Prime Minister Mr. Narendra Modi laid the foundation and dedicated to the state several projects of the Kochi Metro and Indian Railways totalling Rs. 4,500 crore (US$ 552.69 million) in September 2022.
• In May 2023, during the investors' meet, 24 of the 121 investors forwarded their letters of interest for an investment of Rs. 381.75 crore (US$ 46.6 million) in various sectors of the Kattakada constituency of Kerala.
• In FY23, the total marine products exports from Kerala accounted for US$ 1 billion.
• In FY23, the state’s passenger traffic stood at 8,812,531 at Cochin airport and 3,478,067 at Thiruvananthapuram airport.
• Union Railway Minister Mr. Ashwini Vaishnaw, in April 2023, informed that 34 railway stations in Kerala would soon be upgraded to world-class standards.

Kerala remains a steadily growing and socially advanced state, supported by strong tourism, a skilled workforce and rising export activity. Continued investments in roads, urban development, healthcare, education and IT are strengthening its business environment and improving connectivity across regions. Targeted support for fisheries, rubber, spices and green energy is also widening economic opportunities. With a stable services driven economy and a clear focus on sustainability and quality of life, Kerala is well placed to attract new investments and maintain balanced, long-term growth.