Industrial Development & Economic Growth in Kerala

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 favorably 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. As per budget 2018-19, Government of Kerala proposed an outlay of US$ 1,131.75 million for the Agriculture, Animal Husbandry and Co-operation sector.

It has the first international transhipment terminal in India, having a design capacity of around 4 million TEUs and providing better connectivity between Kerala and other ports in India.

The state’s GSDP recorded a CAGR of 11.16 per cent between 2011-12 and 2017-18Q.        

Total merchandise exports from the state stood at US$ 7.31 billion during 2017-18. During 2018-19 (up to Dec 18), the exports stood US$ 7.36 billion.

Under SEZ Act, 2005, Kerala has 29 formally approved SEZs, 25 notified SEZs and 19 exporting SEZs. The state has a techno park in Thiruvananthapuram which has been instrumental in attracting global electronics manufacturers, an info park in Kochi, and a cyber park in Kozhikode. Performance of the key sectors of state is as follows:

• As per the State Budget 2018-19, government has allocated funds worth (US$ 1.70 million) for cultivation of pepper in the state.
• Kerala tourism to tap culinary skills of women to dish out the distinct flavours of the state’s ethnic cuisine to visitors.
• During 2018-19*, fruits and vegetable production in the state stood at 1885.97 thousand MT and 3042.86 thousand MT respectively
• During Apr-Nov 2018, tea production in Kerala stood at 47.22 million kg. Tea exports from the stood at US$ 52.36 million during 2018-19 (up to Dec 18).
• As of June 2018, 26 road project works have been completed in the state under PMGSY
• During 2017, 14.67 million domestic tourists and 1.09 million foreign tourists arrived in Kerala.
• The cargo traffic handled by Cochin port was 26.15 million tonnes during 2018 – 19 (Up to Nov 18)

Note: * - As per 1st Advance Estimates, MT – metric tonnes, E – Estimates, Q- Quick Estimates

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