KERALA GOD S OWN COUNTRY

Transcription

1 GOD S OWN COUNTRY September 2017

2 Table of Content Executive Summary...3 Advantage State....5 Kerala Vision Kerala An Introduction....7 Budget Infrastructure Status...19 Key Industries Doing Business in Kerala State Acts & Policies

3 EXECUTIVE SUMMARY (1/2) Cultural diversity and well developed tourism sector 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. Highest literacy and sex ratio As of census 2011, Kerala has the highest literacy rate of 94.0% and sex ratio of 1,084 women for 1,000 men, in India. Male literacy rate in the state stands at 96.10%, among all states. Largest recipient of foreign remittances in the country In , Kerala received NRI remittances of US$ billion. In , NRI remittances of the state were US$ billion, up by 24%. Remittances to the state are estimated at 36.3% of the net state domestic product. As of December 2016, Kerala had US$ billion of non-resident deposits. Ranks second in Investment Climate Index 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 welltrained human resource pool. Source: Economic Review of Kerala , NRI Achievers Bureau, MIGRATION AND DEVELOPMENT BRIEF 27 by World Bank, SLBC Kerala 3

4 EXECUTIVE SUMMARY (2/2) Strong agricultural sector Kerala is a leading agricultural state in the country & the largest producer of rubber, pepper, coconut & coir. As per budget , Government of Kerala has proposed an outlay of US$ million for the agriculture sector, First international container transhipment terminal Kerala has the 1st international transshipment terminal in India, having a design capacity of around 4 million TEUs & providing better connectivity between Kerala & other ports in India. Presence of world class technology park Kerala has been promoting knowledge-based industries such as IT/ITeS, computer hardware & biotechnology. It is the first state having a technology park with CMMI level 4 quality certification & a worldclass IT campus in Thiruvananthapuram. Cargo Traffic in Cochin Port The total cargo traffic handled by Cochin port during was 25 million tonnes, recording an increase of 13.16% against million tonnes for the year Source: Economic Review of Kerala , Kerala IT Policy, TEU s = Twenty-foot Equivalent Unit Rubber Board, Ministry of Commerce and Industry, Government of India, Department of Economics and Statistics, Kerala, Kerala State Co-operative Rubber Marketing Federation, Cochin Port Trust, New Indian Express, State budget

5 ADVANTAGE: E Foreign tourist arrivals: 1.04 million High economic growth Kerala s gross state domestic product (GSDP) surged at a compound annual growth rate (CAGR) of 11.18% between and Kerala is the leader in rubber production; high demand of rubber has opened up immense opportunities for the state in the rubber industry. Leader in tourism In 2015, Kerala was rewarded as the winner of PATA awards by Macau Government Tourism Office (MGTO) BBC Travel survey has rated Kerala as the top favourite tourist destination among foreign travellers. Foreign tourist arrivals increased by 5.71% during 2016 over Foreign tourist arrivals: 3 million Advantage Kerala Rich pool of skilled labour Kerala has a large base of skilled labour, making it an ideal destination for knowledge-intensive sectors. The state has the highest literacy rate in the country. It has a large pool of semi-skilled and unskilled labourers. Policy and infrastructure support Kerala has a wide range of fiscal and policy incentives for businesses under the Industrial and Commercial Policy and has well-drafted sector-specific policies. It has a well-developed social, physical and industrial infrastructure and virtual connectivity, and good power, airport, IT, and port infrastructure. E-governance initiatives will further strengthen transparency and bridge digital divide. Source: Economic Review of Kerala , Tourism Vision 2030, kerala Tourism 5

6 VISION 2030 Green, sustainable and safe transport. Affordable and clean power to all. Exploit the full potential of hydro-electric generation. 100% electrified households with 24*7 availability. Growth oriented labour welfare policy. Connecting labour supply with demand. Increasing employment opportunities. Increase the share of manufacturing to 10% of the GSDP by Sustained increase in employment in manufacturing. Labour Industry Transport Forestry Vision 2030 Energy Agriculture & livestock Education Health Provide high quality education at affordable rates. Create a global brand name in education and develop into a knowledge hub by Increase health expenditure to GSDP ratio from 0.6% in 2012 to 4-5% by Set up three medical cities by Provide health insurance cover to all. Increase the share of forestry in GSDP to 0.5%. Increase the productivity of forests through improved management of resources. Shift from subsistence farming to highly knowledge intensive, competitive farming. Self sufficiency in supply of fish, meat, milk and other dairy products to the local market. Source: Government of Kerala 6

7 FACT FILE There are 44 rivers flowing through Kerala, the major ones being Periyar (244 km), Bharathapuzha (209 km) and Pamba (176 km). Out of these 44 rivers 41 are west flowing and 3 are east flowing. Parameters Capital Kerala Thiruvananthapuram Geographical area (sq km) 38,863 Administrative districts (No) 14 Source: Maps of India Kerala is located along the coastline to the extreme south-west of the Indian peninsula, flanked by the Arabian Sea on the west and the mountains of the Western Ghats on the east. The state has a 580 km long coastline. Malayalam is the most commonly spoken language. Hindi, English and Tamil are the other languages used. Kochi, Kozhikode, Kollam, Thrissur, Alappuzha, Palakkad, Thalassery, Ponnani and Manjeri are some of the key cities in the state. Population density (persons per sq km) 860 Total population (million) Male population (million) Female population (million) Sex ratio (females per 1,000 males) 1,084 Literacy rate (%) 94.6 Source: Kerala at a glance, Economic Review of Kerala, , Government of Kerala website, Census 2011, Central Statistics Office 7

8 IN FIGURES (1/2) Parameter Kerala All states Source Economy GSDP as a percentage of all states GSDP GSDP growth rate (%) Per capita GSDP (US$) 2,677 1,546 Advanced Estimates provided by Directorate of Economics and Statistics of Kerala Advanced Estimates provided by Directorate of Economics and Statistics of Kerala Advanced Estimates provided by Directorate of Economics and Statistics of Kerala Physical Infrastructure Installed power capacity (MW) 4, , Central Electricity Authority, as of August 2017 Wireless subscribers (No) 39,823,618 1,186,840,884 Internet subscribers (No) 16,550, ,190,000 Telecom Regulatory Authority of India, as of June 2017 Telecom Regulatory Authority of India, as of March 2016 National highway length (km) 1, , NHAI & Roads and Building Department Major and minor ports (No) India Ports Association Airports (No) Airports Authority of India 8

9 IN FIGURES (2/2) Parameter Kerala All states Source Social Indicators Literacy rate (%) Census, 2011 Birth rate (per 1,000 population) SRS Bulletin December 2016 Investments FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, From April 2000 to March 2017 Industrial Infrastructure PPP projects completed & operational (No) 29 1,246 DEA, Ministry of Finance, Government of India, July 2016 Exporting SEZs (No) SEZ India, as of September 2017 PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System 9

10 , ,291 1,294 1, , ,892 1,841 1,907 1, ,677 ECONOMIC SNAPSHOT GSDP GSDP of Kerala at current prices (US$ billion) Per Capita GSDP of Kerala at current prices (US$) CAGR 11.18% CAGR 11.09% At current prices, Kerala s GSDP* was about US$ billion in The state s GSDP was recorded at a CAGR of 11.18% between and Growth was mainly driven by secondary and tertiary sectors. The state s per capita GSDP^ stood at US$ 2677 during as compared to US$ 935 during Per capita GSDP increased at a CAGR of 11.09% between and Source: Advanced Estimates provided by Directorate of Economics and Statistics of Kerala, GSDP* - Government of Kerala With Medium Term Fiscal Plan for Kerala to , Per Capita GSDP^ - calculated using GSDP million US$/Population in million 10

11 ,135 1, , , ,672 1,630 1,668 1, ,050 ECONOMIC SNAPSHOT NSDP NSDP of Kerala at current prices (US$ billion) NSDP per capita of Kerala at current prices (US$) CAGR 11.34% 2,500 2,000 CAGR 9.57% ,500 1, At current prices, Kerala s NSDP# was about US$68.5 billion in NSDP of the state grew at a CAGR of 11.34% between and Kerala s per capita NSDP & was US$ 2,049.9 in compared to US$822 during Per capita NSDP of the state grew a CAGR of 9.57% between and Source: Advanced Estimates provided by Directorate of Economics and Statistics of Kerala, NSDP# - calculated using per capita NSDP x Population in million, per capita NSDP & - Geometric mean of YoY calculation from to

12 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP In , the tertiary sector µ contributed 67.8% to the state s GSDP at current prices, followed by the secondary sector contributing 19.51%. The tertiary sector grew at a CAGR of 15.55% between and Growth was driven by storage, transport, financial and real estate segments. The secondary sector grew at an average rate of 12.53%, between and Growth was led by manufacturing, construction, electricity, gas & water supply. The primary sector expanded at an average rate of 10.92% between and , mainly supported by growth across agriculture and mining & quarrying segments. 100% 90% 80% 70% 60% 50% 40% 30% Visakhapatnam GSDP composition port traffic by (million sector tonnes) 59.60% CAGR 68.70% 22.50% 15.55% 12.53% 19.51% 20% 10% 17.90% 10.92% 12.69% 0% Primary Sector Secondary Sector Tertiary sector Source: Directorate of Economics and Statistics of Kerala Economic Survey, Sector-wise %share of GSDPµ -Geometric mean of YoY calculation from to

13 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION Agriculture, Forestry and Fishing contributed per cent to Kerala s gross state value added in Kerala is one of the leading pepper and rubber producers in the country. As per budget , the state government allocated US$ million for agricultural sector, US$ million for soil and water conservation sector, US$ million for animal husbandry, US$ million for dairy development and US$ million for fisheries. On other hand, under the 12th Five Year Plan, US$ 1.46 billion was allocated for agriculture and allied sectors in the state. In November 2016, Kerala agreed to implement Food Security Law in the state. As per the law, the government will make available 5 kg of highly subsidized food grain at Rs 1-3 per kg, to each person in the state per month. Crop Annual production ( 000 MT) Onion 200 Wheat 37,300 (1) Rubber 655,000 (1) Raw cashew 29,715 (1) Total food grains 698,600 Pulses 1,000 Rice 697,300 Drumstick 15,976 (1) Fruits* 2, Groundnut 500 Plantation* 5, Cane gur 14,853 (1) Mango 386,380 Vegetables* 1, Grapes 1,880 Cocoa 14,186 (1) Coffee 68,650 Turmeric 6,820 (1) Tea 4.51 (2) Nutmeg 14,193 (1) Pepper 40,690 (1) Note: (1) ; (2) m.kg, *2 nd advance estimates for Source: Department of Economics and Statistics, Kerala, Department of Agriculture Cooperation And Farmers Welfare 13

14 , , , , , ECONOMIC SNAPSHOT EXPORTS Value exports from Kerala increased from US$ 4,028 million in to US$ 4,220 million in Exports of non-basmati rice from the state increased from US$ million in to US$ million in In , exports of non-basmati rice from Cochin SEZ were valued at US$ million. Exports break-up, Cochin Special Economic Zone Port ( ) Sectors (US$ million) Agricultural products (1) Electronics hardware Engineering 4.39 Gem & jewellery IT and ITeS Miscellaneous Plastic and rubber products Textiles & garments Trading , , , , , , ,000.0 Total exports turnover from CSEZs (US$ million) , Exports of basmati rice from the state, in value terms, increased from US$ thousand in to US$ thousand in Exports of floriculture products from the state stood at US$ 3.64 million in while exports of fruits and vegetable seeds from the state was recorded at US$ million, during the same period. Exports from Electronics Technology Parks Kerala, increased 22.55% in to reach US$ 970 million. Source: Office of the Development Commissioner, CSEZ - Cochin Special Economic Zone (1) , APEDA, Kerala Economic Review

15 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to DIPP, during April 2000 to March 2017, FDI inflows into the state (including Lakshadweep) totaled to US$ 1.75 billion. As per budget , the Kerala Infrastructure Investment Fund Board will be provided with an envisioned resource envelope of US$ 4.58 million during , in order to enable and provide more investments in the state. The state government has sanctioned investments of US$ 100 million, US$ 156 million & US$ 8.3 million for the Vizhinjam International Seaport project, Kochi Metro Rail Project & for land acquisition for Kozhikode & Thiruvananthapuram international airports respectively. The Government of Kerala is also planning to launch Magnificent Canals program during , for controlling the investments & capitalising on the potential of tourism sector in the state. The program would deal with the development of select canal stretches under the PPP# model in order to boost tourism in the state. In January 2017, several companies have planned to make investments worth USD million in, Infopark Phase-II & generate employment for around IT professionals FDI Visakhapatnam equity inflows, port traffic to (million tonnes) (US$ million) Further, the state government has also decided to propose a tax reduction from 14.5% to 5% for attracting investments across automated robotic car parking system, during In March 2017, Kerala Infrastructure Investment Board (KIIB) cleared basic development projects worth US$ 1.19 billion, which include development projects for physical infrastructure such as roads, bridges, potable water, health, education, SC/ST development and power transmission grid. Note #: Public-private partnership Source: DIPP - Department of Industrial Policy & Promotion, 1 Including Lakshadweep, Government of Kerala, 15

16 STATE BUDGET Annual Budget Sector Investment (US$ million) Sector Investment (US$ million) Agriculture Small scale modern industries Soil and water conservation Drinking water Animal husbandry Public Health Dairy development Science, technology & environment Fisheries School education Soil and water conservation Roads and bridges Handloom and Powerloom sector Information Technology and e-governance Rural development and allied sectors Medical Education Education Public works Heavy and Medium Industries Khadi and Village Industries 2.64 Source: Finance Department, Government of Kerala, India 16

17 PHYSICAL INFRASTRUCTURE ROADS (1/2) As per the state budget , under the scheme of PPP annuity model and loan from NABARD, construction work on 20 mega projects was to be initiated in the state during Some of these projects include: Cherupuzha Payyavur Ulickal Vallithod km hill highway, construction of 1st phase of Kodimatha, Kundannoor flyover, Ramanattukara Flyover, etc. Source: Maps of India Road development activities in the state are undertaken under three broad categories of roads and bridges, road transport and other transport services. In the annual budget , a total outlay of US$ million has been proposed by the state government for improving roads and bridge infrastructure. An outlay of US$ 3.81 million was proposed by the state government for development and improvement of state highways including relaying of a 600 km length road during During 12th Five Year Plan the state government proposed to develop 290 kilometers of roads under various scheme. As per the state budget , under Kerala State Road Transportation Corporation, the state government has planned an allocation of US$ 2.99 million for purchasing new single/multi axle buses which are energy efficient during Further, US$ 1.37 million and US$ 1.68 million have been allocated for modernisation of depots & workshops and infrastructure development as well as computerisation purpose, respectively. Road type Road length (km) National highways 1, State highways 4, Major district roads 27,469.9 Source: Economic Review of Kerala, , Kerala State Industrial Development Corporation Ltd.; Ministry of Road Transport & Highways, Government of Kerala, State budget

18 PHYSICAL INFRASTRUCTURE ROADS (2/2) Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in 2000 with the objective of connecting eligible rural habitants. As of February 2017, about 590, km of road network was completed across India, of which 3, km was completed in Kerala. Pradhan Mantri Gram Sadak Yojana (PMGSY) (2017) Habitations benefitted 380 Length completed 2, National highway length completed (km) Total expenditure (US$ million) Source: PMGSY Expenditure on road works under PMGSY in Kerala (US$ million) As per budget , construction work on Seaport Airport Road between Kalamassery NAD junction as well as Nedumbassery airport was in its completion phase, with the construction of 3rd phase was expected to be initiated during The state government had allocated an amount of US$ million for the construction of 3rd phase Source: NHAI, omms.nic.in 18

19 PHYSICAL INFRASTRUCTURE RAILWAYS Kerala is well connected to other parts of the country via railways. The State Government has appointed Kerala State Industrial Development Corporation Ltd (KSIDC) as the nodal agency for developing a project to establish a north-south High-speed Rail Corridor (HSRC) to facilitate smooth and speedy passenger movement between various cities and towns in the state. As per state budget , the state government approved US$ billion for constructing a 570-km corridor from Thiruvananthapuram to Kasaragod. As per budget , the Kerala Rail Development Corporation is going to undertake construction work of nine rail lines and detailed project reports of Thiruvananthapuram Light Metro for US$ million and Kozhikode Metro for US$ million have been prepared. Railway divisions in Thiruvananthapuram, Palakkad and Madurai jointly carry out railway operations in Kerala. Under the major infrastructure development projects, for ongoing and new projects, including Kochi Metro, Suburban Rail Corridor, and various others, the state government has decided to provide these projects with a common pooled amount of US$ million during Source: Maps of India The government announced the launch of Kochi Metro Rail s commercial services of the 13-km Aluva-Palarivattom section of the 27-km Line-1. Over 600 women from the Kudumbasree Mission have been employed & trained for smooth run of the 1st phase of the metro. Source: Economic Review of Kerala, , Kerala State Industrial Development Corporation Ltd, Government of Kerala, State Budget 19

20 PHYSICAL INFRASTRUCTURE AIRPORTS Kerala has 3 airports handling domestic & international flights, located at Thiruvananthapuram, Kochi & Kozhikode. Aircraft movement from Cochin airport increased from 56,180 in to 61,688 in Aircraft movement from Thiruvananthapuram airport increased from 26,001 in to 29,117 in During March 2017, aircraft movement from Cochin & Thiruvananthapuram airports stood at 5,461 & 2,412, respectively. Passenger traffic from Cochin airport increased from 7,749,901 in to 8,955,441 in , while passenger traffic from Thiruvananthapuram airport increased from 3,470,788 in to 3,881,509 in During March 2017, passenger traffic from Cochin & Thiruvananthapuram airport stood at 709,717 & 306,591, respectively. Freight traffic from Cochin airport increased from 79,233 tonnes in to 81,485 tonnes in , while freight traffic from Thiruvananthapuram airport decreased from 35,570 tonnes in to 28,450 tonnes in During March 2016, freight traffic from Cochin & Thiruvananthapuram airports stood at 6,828 tonnes & 2,696 tonnes, respectively. Source: Maps of India Source: Airports Authority of India, Kerala State Industrial Development Corporation Ltd. An international airport at Kannur is upcoming and is expected to be operational by mid This airport will be the 4th to have a runway of 4,000 metres. In February 2017, Government of Kerala approved setting up of an airport at Erumely. This step is expected to benefit religious tourism as lakhs of devotees visit Pathanamthitta district every year. 20

21 PHYSICAL INFRASTRUCTURE PORTS (1/4) Kerala has 18 ports, of which, Cochin is the major one. Furthermore, there are three intermediate and 14 minor ports. The development activities of the port are taken care of by the Department of Ports, Harbour Engineering Department and Harbour Engineering Department. Under the 12th Five Year Plan from 2012 to 2017, the State Government approved an investment of US$ million for development of port infrastructure facilities for handling cargo and passenger transport. Vizhinjam International Port Phase-I, with an outlay of US$ 1.05 billion, is the largest harbour project in Kerala. Head Budget Ports US$ million Existing Ports Major ports Intermediate ports Minor ports Cochin Neendakara Alappuzha Kozhikode Vizhinjam Valiyathura Vadakara Ponnani Thankasserry Kayamkulam Manakkodam Munambam Beypore Thalasserry Manjeswaram Neeleswaram Kannur Azhikkal Kasaragode Source: Cochin Port Trust, Kerala Ports, Kerala Budget ,

22 PHYSICAL INFRASTRUCTURE PORTS (2/4) During , the cargo traffic handled by Cochin port was 25 million tonnes. However, in , the total traffic handled at Cochin port was million tonnes. The Cochin Port handled million tonnes of crude oil, 816 thousand tonnes of cement 491,087 Twenty Foot Equivalent Units (TEUs) in In addition, the state government has been focussing on development of minor ports Cochin port traffic (million tonnes) Source: Cochin Port Trust, News articles, Economic Survey , India Port Association Ports to be developed Budget (US$ million) Beypore and Kozhikode ports 1.97 Ponnani port 0.25 Vizhinjam cargo harbour 3.75 Thangassery (Kollam) port/cargo harbour 2.39 Kodungallur port 1.75 Azhikkal port 1.54 Source: State Budget

23 PHYSICAL INFRASTRUCTURE PORTS (3/4) The Cochin port is a favourite port-of-call for luxury cruise liners from around the world. Number of cruise vessel arrivals at Cochin port During , total number of cargo vessels that entered Cochin Port were recorded to be 1, Around 28,342 cruise passengers embarked in Kochi in The arrival of a cruise vessel has an added impact on the regional economy as cruise tourists are high end passengers. On an average, each tourist is estimated to spend US$ 200 during the stopover of less than a day Year Passenger , , , ,342 Source: Cochin Port Trust 23

24 PHYSICAL INFRASTRUCTURE PORTS (4/4) Category Wise Distribution Of Vessels Entering The Cochin Port Year Number of Vessels Containers Coal Fertilizers & raw materials Others Food Grains General Cargo Tankers Total Vessels Source: Cochin Port Trust, New Indian Express 24

25 , , , , , , , , , PHYSICAL INFRASTRUCTURE POWER (1/3) As of August 2017, the state had a total installed power generation capacity of 4, MW, of which 2, MW was accounted for by state utilities, 1, MW by central utilities and MW under private sector. Thermal power contributed 2, MW to total installed power generation capacity. Hydropower (1, MW), nuclear power ( MW), and renewable power ( MW) are the other main energy sources. Kerala s state utilities, which account for 53.21% of overall capacity, generate 83.99% of the energy through hydroelectric power plants, and the remaining 16.01% through thermal and renewable power generation plants. 6, , , , , , Installed power capacity (MW) Under the 12th Five Year Plan valid from 2012 to 2017, the State Government proposed an outlay of US$ 1, million for the state s energy sector, which is taken care of by the Kerala State Electricity Board (KSEB), Agency for Non-conventional Energy and Rural Technology (ANERT), Meter Testing and Standards Laboratory (MTSL) and Energy Management Centre (EMC). Sub Sectors Agency for Non-conventional Energy and Rural Technology Budget (US$ million) 7.45 Energy Management Centre 1.24 Source: State Budget , Central Electricity Authority 25

26 PHYSICAL INFRASTRUCTURE POWER (2/3) Kerala is among the prominent Indian states to have achieved 100% rural electrification. The rural areas or villages in the state were electrified under a scheme launched in 2015, Deendayal Upadhyaya Gram Jyoti Yojana. The operational electrification scheme, that is, Rural Electricity infrastructure and Household. Electrification, was subsumed in the new scheme. As on July , a total sum of US$ 33.8 million was sanctioned and US$ million was disbursed under the DDUGJY scheme for rural electrification of 29 projects in the state. Under Deendayal Upadhyaya Gram Jyoti Yojana scheme, 14 new projects have been sanctioned for US$ million as of July Status of rural electrification in Kerala (As of July 2017) Area type Nos. Total villages 1,017 Electrified villages 1,017 Total rural households 71,03,000 Electrified rural households 71,03,000 Un-electrified rural households Status of rural electrification in Kerala under DDUGJY scheme (as of July 2017) Nil Area type Nos. Intensively electrified villages 1,087 Electrified BPL households 1,50,305 Source: Deendayal Upadhyaya Gram Jyoti Yojana 26

27 PHYSICAL INFRASTRUCTURE POWER (3/3) Budget Highlights : Total amount of US$ million provided for Kerala State Electricity Board (KSEB). New 15 small scale hydroelectric power projects to be taken up in FY18 and US$ million allocated for hydroelectric projects. Transgrid 2.0 with project cost of US$ 1.46 billion, waiting to be sanctioned by KIFB. US$ million allocated for revamping the transmission networks in urban areas under integrated power development. Hydel Tourism Centre will be restructured as a subsidiary company of KSEB and the scope of hydel tourism will be effectively utilized. The 200 MW solar plant in Kasargode district expected to be completed in FY18. US$ 6.2 million allocated for solar and windmill projects. Source: Finance Department, Government of Kerala, India 27

28 PHYSICAL INFRASTRUCTURE TELECOM As of May 2017, Kerala had an overall tele-density of % as against an all-india average of 93.61%. According to the Telecom Regulatory Authority of India (TRAI), as of June 2017, Kerala had million wireless subscribers and 2.08 million wire-line subscribers. As of April 2017, the state recorded 46,164 new telephone wireless connections of Idea, 6,868 new connections of Vodafone and 7,590 new wireless connections of Reliance. By the end of May 2017, 7,656,724 subscribers had submitted requests for mobile number portability in Kerala. As per state budget , free internet connections will be provided to two million poor families in Kerala under the Kerala Fibre Optic Network (K-FON). WiFi transmission centres will be established at Akshaya Centres, Friends Janasevana Kendras, government offices, libraries, and public places under the control of government. Telecom Infrastructure (As of June 2017) Wireless subscribers 39,823,618 Wire-line subscribers 2,080,498 Internet subscribers 16,550,000 (1) Post offices 5,067 (2) Tele density (in %) Source: Telecom Regulatory Authority of India, 1 As of March 2017, 2 As of March 2016 Performance status of NOFN Project (As of August 2017) No. of GPs in Phase-I 977 Pipe laid (km) 746 Cables laid (km) 830 GPs for which cable laid 1,129 No. of GPs Lit 1,129 Source: Ministry Of Communications And Information Technology, GP - Gram Panchayat 28

29 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE The Kerala urban area comprises of five Municipal Corporations and 60 Municipalities for which the State Government proposed an outlay of US$ 11.2 billion under the 12th five year plan The Kerala Sustainable Urban Development Project (KSUDP) is an Asian Development Bank-assisted project covering the five municipalities of Thiruvananthapuram, Kochi, Kozhikode, Kollam and Thrissur. With an investment of US$ million, the project focuses on urban infrastructure improvement, community upgrading, local government infrastructure development and capacity building, and implementation assistance. The Kerala Water Authority (KWA) is responsible for the design, construction, execution, operation and maintenance of most of the water supply schemes, and the collection and disposal of waste water in Kerala. As per state budget , in addition to the 12th Five Year Plan, the state government proposed an outlay of US$ million for urban development sector. In May 2017, the state government proposed to spend about US$ 2.97 billion for various urban development projects. The package will include construction of big roads, IT parks and welfare schemes for poor and backward sections of the society. The funds are to be arranged by the Kerala Infrastructure Investment Fund Board (KIIFB). Projects & Programmes Budget (US$ million) Solid Waste Management Project 2.76 Kannur City Improvement Programme 1.53 Swachh Bhavanam 0.15 Suchithwa Mission 3.82 Operation Anantha 3.82 The state government launched Haritha Keralam Mission in December 2016, to make Kerala clean and protect its water resources and soil. As per budget , US$ million will be invested for establishing 14 septage units, one in each district. Source: JNNURM, Ministry of Urban Development, State Budget , , Business Standard 29

30 DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS (1/2) Project name PPP type Sector Stage Project cost (US$ million) Road Upgradation (Kottayam- Thiruvananthapuram) Project LNG Port & Terminal Facility (Puthuvypeen) Project Multi-User Liquid Terminal (Puthuvypeen) Project Clinker handling jetty at Azhicode/Kodungallur Port (DBFOT) Annuity (BOT) Annuity Transport Under construction 20 Transport Operation and maintenance stage (BOLT) Transport Under construction (BOOT) Transport Pre-construction 7.76 Ponnani Port Project - Phase I (BOT) Transport Under construction Road Upgradation (Thiruvananthapuram) Project (BOT) Annuity Transport Development and operation of an international ship repair facility at W/island with private sector participation International Container Transhipment Terminal (Cochin Port) Project Vizhinjam International Deepwater Multipurpose Seaport Tindivanam to Ulunderpret on NH-45 Road (BOT) Transport Operation and maintenance stage (BOT) Transport Under construction 77.6 (DBFOT) Transport Under construction (DBFOT) Transport Under construction Operation and maintenance stage Source: DEA, Ministry of Finance, Government of India, BOT: Build-Operate-Transfer, BOLT: Build-Own-Lease-Transfer, BOOT: Build-Own-Operate-Transfer, DBFOT: Design-Build- Finance-Operate-Transfer, 30

31 DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS (2/2) Project name Sector PPP type Stage Project cost (US$ million) Thavakkara Bus Station (BOT) Transport Road Upgradation (Walayar-Vadakkancherry) Project (DBFOT) Transport Crude Oil Handling for Kochi Refineries Ltd (Lease) Transport Cochin International Airport (BOO) Transport Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Operation and maintenance stage Bus Terminal Complex (Thiruvalla) Project (BOT) Transport Under construction 6.42 Bus Terminal (Angamaly) Project (BOT) Transport Operation and maintenance stage 5.18 Aircraft Maintenance Hangar (Kochi) (BOO) Transport Under construction Source: DEA, Ministry of Finance, Government of India, BOT: Build-Operate-Transfer, BOO: Build-Own-Operate, DBFOT: Design-Build-Finance-Operate-Transfer 31

32 DEVELOPMENT PROJECTS: SEZS (1/3) Kerala State Information Technology Infrastructure Limited (KSITI), Kannur KSITI, Kasargod Kerala Industrial Infrastructure Development Corporation Limited (KINFRA) KINFRA, Kakkancherry Sutherland Global Services Infopark Cochin Port Trust, Puthuvypeen Cochin Port Trust, Vallapadom KINFRA, Kochi Unitech Real Estate Parsavnath Developers Smart City Infrastructure Carborundum Universal Limited MM Tech Towers, Alwaye Emmar MGF, Alwaye KSITI, Kollam Hindustan News Print Limited KSITI, Pallipuram KSITI, Purakkad Electronics Technology Park KINFRA Techno Park SEZ - I Technopark Pallipuram Techno Park SEZ - II Source: Ministry of Commerce & Industry, Government of India, 32

33 DEVELOPMENT PROJECTS: SEZS (2/3) As of September, Kerala has 19 exporting SEZs. Name/Developer Location Primary industry Cochin SEZ Cochin Multi-product Cochin Port Trust Vallapadom Port-based Cochin Port Trust Puthuvypeen Port-based Infopark Kakkanad IT/ITeS Electronics Technology Parks - Kerala Attipura IT/ITeS KINFRA Ayiroopara Animation & Gaming KINFRA Chelembra Agro-based food processing Electronics Technology Parks- Kerala Thiruvanthapuram IT/ITeS KINFRA Thrikkakara Electronics industries Kerala State Information Technology Infrastructure Limited Pallipuram IT/ITeS Electronics Technology Parks Kerala (Technopark) Attipura IT/ITeS Kerala State Information Technology Infrastructure Limited Mulavana IT/ITeS Carborundum Universal Ltd. Thrikkakara North Solar Photovoltaic Sutherland Global Services Private Limited Thrikkakara North IT/ITeS Kerala State Information Technology Infrastructure Limited (KSITIL) Pantheerankavu and Nellikode IT/ITeS Infoparks Kerala Puthencruz and Kunnathunadu IT/ITeS Smart City (Kochi) Infrastructure Limited Kakkanad IT/ITeS Kerala State IT Infrastructure Ltd. (KSITIL) Thrissur IT/ITeS Uralungal Labour Contract Cooperative Society Limited (ULCCS LTD) Kozhikode IT/ITeS Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone 33

34 DEVELOPMENT PROJECTS: SEZS (3/3) As of April 2017, Kerala had 29 SEZs with formal approval and 25 notified SEZs. Some of formally approved SEZs in Kerala Name/Developer Location Primary industry Cochin Port Trust Vallarpadam Port-based Cochin Port Trust Puthuvypeen, Ernakulam Port-based KINFRA Kazhakoottam, Thiruvananthapuram Smart City (Kochi) Infrastructure Pvt Ltd Kakkanad, Ernakulam IT/ITeS Kerala State Information Technology Infrastructure Ltd (KSITIL) Pantheerankavu and Nellikode, Kozhikode Electronics Industries IT/ITeS Infoparks, Kerala Kunnathunad, Ernakulam IT/ITeS Cochin International Airport Ltd Ernakulam Airport-based Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone 34

35 SOCIAL INFRASTRUCTURE EDUCATION (1/2) Kerala has the highest literacy rate among all states in the country. As of 2016, the state has a literacy rate of 94.57%; male & female literacy rates stood at 96.61% & 92.52%, respectively. Kerala has 3,021 higher secondary schools as of Of these, 1,162 (38.46%) were government schools, 1,406 (46.54%) aided schools & the remaining 453 (15%) unaided schools. As of February 2017, the state was planning to equip its 4,775 government & aided schools with hi-tech ICT (Information Communication Technology) facilities, at an estimated budget of US$ million. In June 2017, the University of Kerala decided to restore private registrations at undergraduate level. A University Institute of Management (UIM) and eight University Institutes of Technology (UITs) are to be established in various cities of the state this fiscal year. Educational infrastructure (2016) Schools 12,882 Universities 14 Engineering institutions 183 Arts and science colleges 213 Polytechnics 51 Source: Economic Review of Kerala Sub sectors 12th Five Year Plan (US$ million) School education Higher education Technical education Sub sectors Budget (US$ million) School education Higher education (1) Technical education Total (1) Source: State Budget , (1)

36 SOCIAL INFRASTRUCTURE EDUCATION (2/2) Kerala primary education statistics ( ) Schools (No) School dropout rate (%) ( ) Lower primary: 6,882 Upper primary: 2,979 High schools: 3,021 Lower primary: 0.35 Upper primary: 0.21 High school: 0.44 Pupil-teacher ratio 22.5:1 Nature of schools ( P) Student strength (in million) Share of total student strength (%) Government Government-aided Unaided Total P: Provisional Source: Economic Survey of Kerala ,

37 SOCIAL INFRASTRUCTURE HEALTH The departments that offer health services in the state & are responsible for development activities are namely, Health Services Department, Medical Education Department, Ayurveda Department (ISM), Ayurveda Medical Education Department, Homoeopathy Department & Homoeopathy Medical Education Department. In budget , the state government announced plans to invest US$ million for development of public health and US$ million for medical education. Also, an amount of US$ 0.31 was provided for setting up of a modern blood bank in Trivandrum. Under the 12th Five Year Plan, the state proposed an outlay of US$ million for health sector, of which US$ million was proposed for the Directorate of Health Services, US$ million for Directorate of Medical Education & US$ million for Indian System of Medicines. Government of Kerala announced plans to invest US$ 1.68 million for the establishment of a cath lab in the district hospital at Kollam & the general hospital of Kozhikode as per the annual state budget Further, the state government also allocated US$ 79.7 million to the Directorate of Health Services to facilitate implementation of different schemes. As of November 2016, the state was declared as the 3rd Open Defecation Free state in the country. Health indicators (2016) Birth rate (1) 14.8 Death rate (1) 6.6 Infant mortality rate (2) 12 Life expectancy at birth (years) ( ) Male 71.4 Female 76.3 Health infrastructure (as of March 2017) Primary health centres 824 Sub-centres 4,575 Community health centres 225 District hospitals 18 In March 2017, True North, a leading PE fund, announced plans to invest over US$ 200 million in Kerala Institute of Medical Sciences. Note: (1) Per thousand persons, (2) Per thousand live births Source: Economic Review of Kerala, 2017, State Budget , , NHRM, Sample Registration System (SRS) 37

38 CULTURAL INFRASTRUCTURE (1/2) Kerala has been rated as one of the 13 Paradises of the World by National Geographic Traveller; it has been promoted as God s Own Country. Sri Padmanabhaswamy temple makes the state one of the attractive religious tourism spots in India. Other temples in Kerala, such as Guruvayoor & Sabarimala, are also major religious attractions. US$ 2.32 million was allocated in budget for the promotion of Nishagandhi dance and music festivals, Onam celebration, tribal dance festival, Pooram, Theyyam festivals and boat race etc. US$ million will be invested by Kerala Infrastructure Investment Fund Board in Kerala State Film Development Corporation for the construction of modern theatre complexes on commercial basis. In June 2015, Kerala organized a road show in Shanghai & participated in Beijing International Tourism Expo (BITE) The BITE 2015 witnessed participation of 70 buyers from the Chinese travel & tourism industry. The main objective of the initiative was to strengthen the Spice Route heritage with other countries & promote sustainable tourism aimed at achieving world peace. In June 2017, the state government started a campaign Anuyatra, for people with special needs. In this campaign, 23 children suffering from various challenges will become brand ambassadors of the initiative. Popular tourist locations Beaches Backwaters Hill stations Wildlife reserves Departments Construction of cultural complex as headquarters of various cultural institutions at Vyloppilly Bhavan compound. Kovalam, Varkala, Marari, Bekal and Kannur Kumarakom, Alappuzha, Kollam, Kochi and Kozhikode Ponmudi, Munnar, Wyanad and Vagamon Periyar Wildlife Sanctuary, Eraviikulam National Park, Thattekad Bird Sanctuary Parambikulam Wildlife Sanctuary Budget (US$ million) 1.52 Kerala State Film Development Corporation 0.61 State Central Library, Thiruvananthapuram 0.55 Museums and zoos historical museums 0.15 Source: State budget 38

39 CULTURAL INFRASTRUCTURE (2/2) Art and culture are being fostered and promoted through various bodies such as: Kerala Sahitya Academy To promote Malayalam literature. Kerala Sangeetha Nataka Akademi To promote traditional arts. Kerala Lalithkala Academy To promote painters and sculptors. Kerala Folklore Academy To promote Kerala folklore. Kerala State Chalachitra Academy Academy for motion pictures. Kerala Kalamandalam To teach traditional dances. The state government proposed an outlay of US$ million for art and culture under the 12th Five Year Plan, , and on the other hand proposed an outlay of US$ million under annual budget On November 1, 2016, the state celebrated the 60th year of its formation. New sports infrastructure projects in Kerala New hockey stadium at Kollam Rajiv Gandhi Indoor Stadium, Kochi Shooting range at Vattiyoorkkavu, Thiruvananthapuarm Corporation Stadium, Kollam V.K.N. Indoor Hall, Thrissur VKK Menon Stadium, Kozhikode CSN Stadium, Thiruvananthapuram New football stadium at medical college ground, Kozhikkode New multipurpose hall, Kannur Kariavattom main stadium, Thiruvananathapuam Synthetic Athletic track at University of Calicut, Malapuram (Approved under Urban Sports Infrastructure Scheme (USIS)) Source: Department of Tourism, Government of Kerala, Economic Review of Kerala

40 INDUSTRIAL INFRASTRUCTURE (1/3) As of April 2017, Kerala had 29 SEZs with formal approval and 25 notified SEZs. A cyber-park spread over a 68 acre campus is being developed in Kozhikode. Infrastructure Project description The Technopark at Thiruvananthapuram is spread over 760 acres. It currently hosts over 300 IT and ITeS companies, employing over 46,000 IT professionals. Technopark Technopark Phase-II has been declared an SEZ by the Government of India. The technology park is spread across 7.2 million sq. ft. built-up space (completed) and 3.5 million sq. ft. (work-inprogress) As a part of the Phase-IV, named Technocity, Technopark is developing 431 acres of land in Pallippuram, 5 km north of the main campus on the National Highway-47 to Kollam. Infopark The Infopark at Kochi is best suited for ITeS due to its proximity to the submarine optical-cable landings. The total land available with Infopark is acres, of which 75 acres has been notified as an SEZ by the Ministry of Commerce, Government of India. Special Economic Zones Apart from the SEZs in Technopark and Infopark, the other SEZs in Kerala include the KINFRA Electronics Park SEZ in Kalamassery; a multi-product SEZ at Kochi; two port-based SEZs at Vallarpadam and Puthuvypeen at Kochi; a food processing SEZ near Calicut; a pulp and paper SEZ at Kottayam; and a non-conventional energy sources SEZ at Kalamassery. Source: sezindia.nic.in 40

41 INDUSTRIAL INFRASTRUCTURE INDUSTRIAL CLUSTERS (2/3) Symbol Industries IT Engineering Minerals and mining Handlooms and power looms Textile Tiles Canning Coir products Agriculture and forest-based Sericulture Rubber Food products Source: Maps of India Beedi 41

42 INDUSTRIAL INFRASTRUCTURE INDUSTRIAL CLUSTERS (3/3) District Kannur Alappuzha Idukki Thiruvananthapuram Thrissur Palakkad Kollam Kozhikode Wayanad Kasargod Kottayam Ernakulam Industries Handlooms, power looms, beedi Coir products Agriculture and forest based Handlooms, IT Power looms, handlooms, textile, timber, tile, canning Power looms, sericulture Minerals and mining Rubber Minerals and mining Minerals and mining Rubber, food products, engineering IT 42

43 SMART CITIES As of June 2017, Kochi and Thiruvananthapuram are proposed to be developed as smart cities in Kerala. The Kochi smart city would be spread over an area of 246 acres. Along with the smart cities, 9 cities of Kerala have also been selected for infrastructure development. The infrastructure development will be done under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme. In July 2015, the state government allocated US$ 1.47 million for administrative and office expenses for service level improvement plan or capacity building under AMRUT scheme. As per budget , the state government is planning to inaugurate 650 thousand square feet space in Kochi smart city, for providing employment to around 90,000 unemployed youth of Kerala. SmartCity Kochi has set a revenue target of US$ million for 2017, and US$ 2.40 billion by 2021 List of cities in Kerala covered under AMRUT Thrissur Ernakulam Kochin Cities Area (sq. km) Kochi Kollam Kozhikode 128 Thiruvananthapuram 2,192 Thrissur Alappuzha 1,414 Palakkad 1,363 Guruvayur Kannur 2,961 Kollam Thiruvananthapuram Tiruvalla 43

44 KEY INDUSTRIES Kerala s strategic location on the trans-national trade corridor, rich natural resources & simple & transparent procedures are favourably suited for investments in key sectors like tourism, IT/ITeS, manufacturing & mining. Kerala s traditional industries include handloom, cashew, coir and handicrafts. KINFRA, KITCO Limited (formerly, Kerala Industrial and Technical Consultancy Organisation Limited), the Directorate of Industries & Commerce & the Small Industries Development Corporation are jointly responsible for the development of industrial infrastructure in the state. Forming industrial clusters & developing infrastructure (such as rubber parks, electronic hardware park, coconut industrial park, organic industrial park & food processing parks) have been integral to the state s strategies to attract investments in various industries. As per budget , the MSME sector accounted for higher growth rate in comparison with other industrial sectors during For the development of MSME infrastructure, an amount of US$ 6.96 million was allocated by the state government during Key industries in Kerala Handlooms and power looms Rubber Bamboo Coir Khadi and village industry Sericulture Seafood and other marine products Cashew Mining Tourism Food processing Spices and spice extracts IT & electronics The amount allocated to small scale modern industries by the state government during is US$ million. Source: Economic Review of Kerala, , News articles, State budget

45 8,744 8,773 8,790 8,814 9,108 KEY INDUSTRY COIR AND COIR PRODUCTS (1/2) Kerala accounts for 85% of total coir production in India and its coir industry provides employment to around 375,000 people. The Coir Co-operative Marketing Federation (COIRFED) is the apex federation of 842 primary coir co-operatives societies. The US is the largest importer of coir products from India, followed by the Netherlands, the UK, Germany, Italy and Spain. The Coir Kerala trade fair held in February 2015 witnessed the participation of around 170 foreign buyers from over 53 countries. The Coir Board of India facilitates setting up of coir defibering units and coir manufacturing industries in each of the states under various schemes such as Coir Udyami Yojana, Development of Production Infrastructure and Mahila Coir Yojana. As per budget , defibering machines will be provided to coir co-operative societies at 90% subsidy, to self help groups at 75% subsidy and to individuals at 50% subsidy. The state has a target of opening 100 husk processing mills in As part of the second restructuring scheme, the coir cooperative societies taken up for revival will be provided with working capital and managerial subsidy. Under state budget , US$ million is allocated for the coir sector. No. of coir units registered in Kerala as on March ,814 8, Total Private Public Growth trend of coir units registered in Kerala Source: Economic Review of Kerala, , Government of Kerala, Coir Board, News articles, State Budget

46 KEY INDUSTRY COIR AND COIR PRODUCTS (2/2) Exports of curled coir, coir fibre, coir pith, coir rope, coir yarn, coir geo-textile, handloom matting, power loom mats and rubberised coir from India increased in terms of quantity and value over past years. During value exports from the state was recorded at US$ million. Total outlay of US$ million was proposed under the Annual Plan of for the development of coir industry in the state with implementation of 12 schemes through Coir Geo-textiles Development Programme, Margin Money Loan to Entrepreneurs, Production and Marketing Incentives (PMI), 8 Cluster Development Programme in coir sector, etc. 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 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. Coir pith and coir fibre are the major contributors in the export of coir products with more than 80% share. China is the major customer base for India s coir products with 28.6% share in value and 39% share in volume. With an allocation of US$ 2.2 million in December 2016, for procuring raw material and carrying out repair works, public sector spinning mills in Kerala are anticipated to be operational soon. This would in turn propel growth in the textile sector of the state. Exports of coir industry of India ( 000 metric tonnes) Source: Economic Review of Kerala, , Coir Board, Government of India, Business Line 46

47 KEY INDUSTRIES HANDLOOM AND POWER LOOM Among the traditional industries of Kerala, the handloom sector stands second to the coir sector in providing employment. The industry is concentrated in Thiruvananthapuram and Kannur districts and in some parts of Kozhikode, Palakkad, Thrissur, Ernakulam, Kollam and Kasaragod districts. Under the Budget Scheme , the state government has allocated a sum of US$ million for the handloom and power loom industries and US$ 2.64 million for khadi and village industries. Funds released under handicraft schemes ( ) (in US$ 000) Ambedkar Hastshilp Vikas Yojna Design 44.7 Human Resource Development Scheme Total Funds released for Upliftment of Handloom Sector under National Handloom Development Programme ( ) (in US$ 000) 20.0 Exports of textile & garments from Cochin SEZ (US$ million) Budget Allocated for Weaver Service Centres (WSCs) ( ) (in US$ 000) Source: Economic Review of Kerala, , Kerala State Handloom Development Corporation Ltd, Office of the Development Commissioner, State budget 47

48 KEY INDUSTRIES IT (1/3) Kochi has emerged as a unique IT destination and is connected by two submarine cables and satellite gateways that directly support major IT cities, including Bengaluru. According to Annual Plan, an outlay of US$ million has been allocated for the development of information technology. As per state budget , almost all government transactions are expected to become IT-based. In June 2017, Kerala government signed a memorandum of understanding (MoU) with India Electronics and Semiconductor Association (IESA) in a bid to attract more investments from IT and electronics. Kerala possesses a cost-effective and highly skilled human resource base with the lowest attrition rate (less than 5%). The state has a techno park in Thiruvananthapuram, an info park in Kochi, and a cyber park in Kozhikode. It also has private IT parks such as Smart City (Kochi), L&T Park (Kochi), Leela Info Park (Thiruvananthapuram), Brigade Park (Kochi) and Muthoot Pappachan Techno Polis (Kochi). Software exports from registered units in Kerala through Software Technology Parks of India (STPI) reached US$ 467 million in As of April 2017, Kerala had twelve operational IT/ITeS SEZs which are located in Kakkanad, Thiruvanthapuram, Pallipuram Village, etc. The IT industry of the state is growing at a higher pace. Leading IT companies such as TCS, Infosys and UST are providing job opportunities and the industry is expected to add 23,500 new jobs by Exports of IT and ITeS products from Cochin Special Economic Zone increased from US$ 55.5 million in to US$ 77.7 million in As per ASSOCHAM, Kerala ranked 3rd in attracting the highest total investments in IT sector worth US$0.33 millon among all Indian states. In May 2017, Kerala government and Information and Communication Technology (ICT), United Nations struck a deal to setup the country s first UN Technology Innovation Lab in the state to develop programmes for achieving sustainable development goals. Source: Kerala IT Policy 2012, Economic Review of Kerala , State Annual Plan, sezindia.nic.in, State budget , Business Standard 48

49 KEY INDUSTRIES IT (2/3) IT exports from Kerala increased at a CAGR of 11.2% between and Exports from IT industry (US$ million) Operational costs in the state are among the lowest in India (40% lower as compared to other major IT locations in India). Also, rental/real estate costs are lower than major IT cities in the country. Around 11% of the national IT pool is contributed by skilled human resources from Kerala. Kerala has a strong e-governance infrastructure and is a leading state in e-governance CAGR 11.2% The state government is planning to provide job opportunities to 0.5 million people in the IT sector by As of June 2017, the state has 19 notified IT/ITeS SEZs. Exports of IT & ITeS from Cochin SEZ (US$ million) In December 2016, since demonetisation, Kerala government has taken steps for enabling online payment of land registration fees. The National Informatics Centre (NIC) has been tasked with the process of automation of the same, by the state's Chief Minister Source: Economic Survey of Kerala, , sezindia.nic.in 49

50 KEY INDUSTRIES IT (3/3) Tata Consultancy Services Tata Consultancy Services (TCS) is among the largest providers of IT and Business Process Outsourcing (BPO) services in India. TCS employed more than 315,000 IT consultants in 122 countries and generated revenue of US$ 18.3 billion in and US$ 4.74 billion during April-June TCS provides IT consulting and services in financial services, healthcare and life sciences, insurance, manufacturing, media, entertainment, transportation etc. It has a software development and training centre at Technopark in Thiruvananthapuram and plans to set up the world s largest corporate learning centre in Thiruvananthapuram. Infosys Established in 1981, Infosys employs more than 176,187 people. The company generated US$ 9.68 billion in revenue in It is engaged in IT consulting, modular global sourcing, process re-engineering, and BPO services. The company has operations in Australia, China and the US, and marketing and technological alliances with Informatica, IBM, HP, Microsoft, Oracle, etc. Infosys has offices in 30 countries and development centres in India, China, Australia, the UK, Canada, Japan, etc. It has a centre at Technopark, Thiruvananthapuram. Collabera Collabera is a fast-growing, end-to-end information technology services and solutions provider, working with leading global 2,000 organisations from banking & financial services, communications, media, manufacturing, retail, energy and utilities domains. The company employs over 9,000 professionals across more than 25 offices and four worldclass delivery centres in the US, the UK, India, Singapore and Philippines. The company has an office at Technopark, Thiruvananthapuram. RR Donnelley India Outsource Pvt Ltd Co India Founded in 1995, RR Donnelley Global BPO has 7,700 employees in 28 delivery and 41 onsite operation centres across nine countries and had a revenue of US$ billion in It is a subsidiary of RR Donnelley (RRD), a global provider of integrated communications, business services and supply chain solutions. RR Donnelley is a US$ 11 billion Fortune 300 company, with around 65,000 employees across the world. The company has an office at Technopark, Thiruvananthapuram. 50

51 KEY INDUSTRIES ELECTRONICS (1/2) The self contained Electronics Technology Park at Technopark, Thiruvananthapuram, has been instrumental in attracting global electronics manufacturers. Exports from Electronics Technology Parks Kerala, increased 22.55% in to reach US$ 970 million. The state has ample availability of skilled and semi-skilled workers for the electronics industry. The electronic hub proposed at Kochi is a prestigious project of the Government of Kerala to promote electronic hardware manufacturing and assembling units and R&D centres, and to support infrastructure for the same Exports of electronic hardware from Cochin SEZ (US$ million) As per Budget , US$ million is allocated for mega projects in the state, which include Kochi Electronic Hardware Park. This hub is a high-priority area, which would promote a large number of small-, medium- and large-scale industries in the state. It would also form a National Investment & Manufacturing Zone (NIMZ) for manufacturing electronic hardware items. Key players Traco Cable Company Limited Transformers and Electricals Kerala Ltd (TELK) Kerala State Electronics Development Corporation Ltd (Keltron) Between and , electronic hardware exports from Cochin Special Economic Zone grew at a CAGR of 8.86% to reach US$ 76.8 million in Source: Economic Review of Kerala, , 2016 Government of Kerala, 51

52 KEY INDUSTRIES ELECTRONICS (2/2) Traco Cable Co Ltd Traco Cable Company Limited commenced operations in It manufactures high-quality cables and wires in technical collaboration with Kelesey Engineering Co Ltd, Canada. TRACO currently meets the needs of public sector undertakings in India such as railways and the electricity boards of various states. The company is headquartered in Kochi and has factories in Ernakulam, Kannur and Thiruvalla. Transformers and Electricals Kerala Ltd (TELK) TELK was incorporated in 1963 under an agreement with the Government of Kerala, Kerala State Industrial Development Corporation, and Hitachi Limited, Japan. It manufactures transformers, bushings and tap changing gears. The factory and corporate office are located in Angamally, near Kochi. TELK provided its first 400 KV Class Transformer, 315 MVA Auto Transformer and Generator Transformer to India's first 500 MW Thermal Unit. Kerala State Electronics Development Corp (Keltron) Founded in 1973, Keltron is a state-owned electronics enterprise, employing around 1,800 people and has 10 manufacturing centres. It provides technical manpower to leading organisations such as Oil and Natural Gas Corporation Limited (ONGC). The company s products span categories including aerospace electronics, security and surveillance systems, intelligent transportation systems, strategic electronics products, IT solutions, IT infrastructure solutions, process automation, ID card projects, power electronics, electronic components and TE units. Keltron is headquartered in Thiruvananthapuram and has training centres in 30 locations across Kerala with a strong infrastructure spread over 700,000 sq ft of built up area. Source: Company website and annual report 52

53 KEY INDUSTRIES TOURISM (1/2) The tourism sector of Kerala is a significant contributor to the state economy. As per Kerala s economic review 2016, revenue from the tourism sector accounted for 10% share of the state s GDP. Total revenue (including direct and indirect) from tourism surged by about 12.11% to US$ 4.1 billion in Kerala earned US$ 4.14 billion from tourism in Popular tourist destinations in Kerala include beaches of Kovalam, Varkala, Marari, Bekal and Kannur; backwaters of Kumarakom, Alappuzha, Kollam, Kochi and Kozhikode; and hill stations of Ponmudi, Munnar, Wayanad and Wagamon. Kerala has a number of well-known wildlife reserves, including the Periyar Wildlife Sanctuary, the Eravikulam National Park, the Thattekkad Bird Sanctuary and the Parambikulam Wildlife Sanctuary. The State Tourism Department is developing eco-friendly, rural tourism packages in Kumarakom, Wayanad, Kovalam and Muziris heritage circuit. Under state budget , US$ 3.41 million is allocated for various tourism institutions and Muziris Heritage Project and the Thalassery, Alappuzha spice route are being implemented. Under budget , the state government made a total allocation of US$ million for 24 schemes for development of Tourism sector in the state. Further, an allocation of US$ 2.74 million and US$ thousand has been proposed by the state government for the Heritage and Spice Route project as well as Infrastructure Development of Varkala, respectively, during Total outlay of US$ million was proposed under the Annual Plan of for the infrastructure development of the tourist destinations at Kovalam, Kumarakam, Thekkady, Munnar, Fort Kochi, Athirappally, Wayanad, Varkala, Neyyar, Ashtamudi, Thenmala, Sabarimala, Vembanad, Vagamon, Cherai, Peechi, etc. and US$ 4.46 million for the construction of new blocks at Guruvayoor, Thiruvananthapuram, Sulthanbathery, Peerumedu, Kozhikkode, Ponmudi and Munnar and for the upgradation of tourism guest houses Kerala Blog Express (KBE), a campaign initiative from Kerala Tourism, was flagged off in Ernakulum, comprising 30 online bloggers from 29 countries such as Modova, Gibraltar, UK, Italy and Spain, Germany, etc,. The group will be visiting numerous destinations in the state for a fortnight to share their experiences with the audience, internationally. The destinations would include backwaters, beaches, hills & experience the life in cities & the villages. Source: Economic Review of Kerala, , , State Budget ,

54 KEY INDUSTRIES TOURISM (2/2) Major initiatives of Kerala Tourism - 12th FYP: An investment of US$ 0.67 million was announced for Kerala waste free destination scheme. An investment of US$ 2.47 million was announced for the promotion and marketing activity of Kerala tourism sector. For the sea plane project, an investment of US$ 1 million was announced. For the strengthening and modernisation of tourism institutions an investment of US$ 0.24 million was announced Domestic tourist arrivals in Kerala (in million) Description Budget (US$ million) Foreign tourist arrivals in Kerala (in million) Alappuzha spice route Kerala Tourism Development Corporation (KTDC) Ltd District Tourism Promotion Councils (DTPC) and DMC Source: Kerala Economic Review, Kerala Tourism 54

55 20.03 KEY INDUSTRIES RUBBER INDUSTRY Kerala is the leader in rubber production in the country. State accounted for about 77.9% share in the total natural rubber production in Rubber production in Kerala stood at thousand MT during , in comparison with thousand MT during The area under rubber production in Kerala increased from thousand hectares in to thousand hectares in The production of natural rubber in Kerala was 438 thousand MT in In the budget , the state government allocated US$ 77.6 million for Rubber Production Incentive Scheme of Government of Kerala Exports of natural rubber from India ( 000 tonnes) In June 2015, the state government announced the launch of a price support scheme to offer an assured price of US$ 2.48 per kg, to the small rubber producers who grow rubber in an area of 2 hectares or less. The state government allocated US$ million for implementation of this scheme. In December 2016, All India Rubber Industries Association (AIRIA) collaborated with Tripura University (TU) for imparting education for programs in Rubber Technology to improve rubber education, rubber skills training and research co-operation Exports of rubber & plastic products from Cochin SEZ (US$ million) Source: Economic Review of Kerala, , , Rubber, Board, Ministry of Commerce and Industry, Government of India, state annual budget

56 KEY INDUSTRIES SPICES (1/2) Kerala can be termed as the land of spices, considering the large variety of spices grown in the state. During , overall production of spices in Kerala stood at thousand tonnes and area under cultivation was recorded at thousand hectares. Kerala is the largest producer of pepper in India and accounts for a lion s share in India s production Exports of spices from Kerala (through Cochin ports) in US$ million In , the state accounted for a pepper production of 42,132 tonnes with only 85,948 hectares of land under pepper cultivation. Apart from pepper, other spices produced in the state include ginger, cardamom, nutmeg, tamarind, etc. Spices exports from Kerala (through Cochin port) stood at US$ million in As per the Budget , government has allocated funds worth US$ 1.55 million for cultivation of pepper and cardamom in the state The state also plans to setup a spices park each in Idukki and Wayana. 20 Under State Budget , the state government allocated an amount of US$ 3.05 million in order to produce and distribute various quality planting materials Source: Economic Review of Kerala, , 2016, Department of Agriculture Cooperation & Farmers Welfare, State budget 56

57 KEY INDUSTRIES SPICES (2/2) As of , the overall exports of spices from India was recorded as 8,17,250 tons that reached 8,93,920 tons in , with Kerala being the major contributor. In the figure was 947,790 tonnes. In terms of value, pepper exports from Cochin port were recorded at US$ million during For the same period of time, the export values of cardamom, nutmeg, ginger and turmeric were recorded as US$ million, US$ million, US$ 7.93 million and US$ 7.57 million respectively. In , 49,706 MT of spices worth US$ million were exported from the Cochin port. Volume of exports through Cochin Port (tons) Spices Ginger 2, ,750.8 Cardamom ,607.7 Chilies 4, ,565.4 Nutmeg 1, ,997.9 Pepper 15, ,203.6 Turmeric 3, ,444.6 Source: Economic Review of Kerala, , 2016, Spice Board of India News articles, indianspices.com 57

58 KEY INDUSTRIES KHADI INDUSTRY Khadi and village industries have been an integral part of the traditions of Kerala. The Kerala Khadi and Village Industries Board is the statutory body in the state. As per budget , the State Government proposed an outlay of US$ 2.13 million for khadi and village industries. Moreover, the Kerala Khadi and Village Industries Board has been provided with a financial assistance of US$ thousand for the establishment of Gandhi-Khadi Museum at Payyannur. As per budget , the state government has allocated US$ 2.64 million for khadi and village industries and a new scheme called Khadi Grama Programme will be launched. As of , under Income Support Scheme, an investment of US$ 0.21 million had been approved to 6,274 khadi spinners and 4,014 weavers. This investment was approved as a production incentive. The scheme also supports 11,193 khadi artisans with an investment of US$ 3 million in order to ensure minimum wages. Production in Khadi and village industries sector of Kerala (in US$ million) Khadi sales value from Kerala (in US$ thousands) Source: Ministry of Micro, Small & Medium Enterprises, State budget

59 KEY INDUSTRIES AYURVEDA There are vast opportunities for investment in the field of Ayurvedic products due to higher demand for natural products for skin, hair, body and dental care. Kerala is the land of Ayurveda, with numerous medicinal plants. Herbs with good potency provide the continuity and consistency of Ayurvedic medicines needed for effective treatment procedures. Kerala has the highest number of Ayurveda colleges and practitioners in the world. As per budget , the state government allocated an amount of US$ 1.09 million for the development of global Ayurveda in Thiruvanthapuram. As per state budget , the government has allocated US$ 7.6 million for Ayurvedic system of medicine and US$ 4.81 million for homoeopathy. Thrissur (Kerala) is emerging as one of the largest hubs for Ayurvedic drug manufacturing in the country. Kerala has 850 Ayurvedic drug manufacturing units, including some major ones such as Oushadhi, Vaidyaratnam Oushadhasala and KP Namboodiris. There are 815 dispensaries, 127 hospitals and 20 sub centres active for Ayurvedic treatment under ISM Department and the state government has proposed an amount of US$ 5.21 million for the development and strengthening of ISM Department of the state under the annual budget Another US$ thousand and US$ 2.02 million were proposed for the strengthening of Ayurveda dispensaries and upgradation of ISM institutions, in the state, respectively. Under annual budget , the state government proposed an investment of US$ thousand for expansion of Oushadhi Kerala Ltd. (The Pharmaceutical Corporation (IM) Kerala Ltd.). Oushadhi Kerala is the 65th largest manufacturer of Ayurveda medicines in India. Note: ISM- Indian Systems of Medicine Department, Government of Kerala Source: Economic Review of Kerala, , State budget , News articles 59

60 KEY INDUSTRIES FISHERY The state has a long coastline of over 580 km & innumerable water bodies, generating a huge potential for inland & marine fishing & providing it a prominent position in fish cultivation. Total fish production in Kerala (in million tonnes) Among maritime states in India, Kerala ranks 2nd in marine fish production. In , total fish production in the state stood at 0.73 million tonnes As of 2016, the state government had finished construction of 14 fishing harbours and 10 are in progress. 0.7 As per state budget , the Government of Kerala proposed allocations of US$ 6.04 million and US$ 5.87 million for the implementation of social security schemes for fishermen as well as for inland fisheries, respectively Further, an allocation of US$ 4.58 million for the University of Fisheries & Ocean Studies, US$ 4.12 million for NABARD assisted RIDF schemes and US$ 4 million for Development of Marine Fisheries Infrastructure & Post-harvest Operations, has also been proposed by the state government during The state government has allocated US$ million for the fisheries sector and coastal area development under annual budget The budget includes schemes such as conservation & management of fish resources, motorisation of traditional fishing crafts & insurance coverage to fishing implements, integrated fisheries development, inland fish production, fishing harbours, modernisation of fish markets & value addition, etc Source: Economic Review of Kerala, , 2016, Department of Animal Husbandry, Dairying and Fisheries, Annual Budget ,

61 KEY INDUSTRIES RICE Under the 12th Five Year Plan ( ), the Government of Kerala targeted to increase the production of rice to 650 thousand tonnes. For the same, a comprehensive State Food Production project was sanctioned with the help of an investment of US$ 18.4 million in and US$ 18.6 million in Further during, , an outlay of US$ 17.2 million was proposed by the state government for the same scheme. As per budget , for rice development, the state government allocated an amount of US$ 5.34 million during Further, as per budget , the state government also decided to provide free rice through ration shops to the BPL/AAY families in the state. Due to this initiative, the total subsidy granted was expected to reach US$ million during Total rice production in Kerala (in 000 tonnes) In state budget , US$ million has been allocated for procurement of paddy. Funds allocated in budget (US$ million) Rice development 5.34 Operational support to padasekhara samithies for group farming 0.68 Source: Economics & Statistics Department, Kerala, State Budget ,

62 KEY INDUSTRIES OTHER GROWTH SECTORS Hospitality, leisure and entertainment Being a leading tourist hub in the country, Kerala is making rapid strides in the hotel, retail and entertainment sector. The sector is attracting investments in projects such as world-class spas, entertainment centres, mega shopping malls, multiplexes, business convention centres and theme parks. The state has world-class infrastructure and perfect climate for Ayurveda health centres. Hotel projects under development include Mfar Hotels and Resorts Ltd s 5-star hotel and Banyan Tree Hotels & Resorts. UAE based Western Marine Service and Techlink Systems plans to invest US$ million in hospitality sector of Kerala, by setting up a hotel chain under the brand name - Springstay. The Kerala State Film Development Corporation will build 100 more theatres in the state using funds from Kerala Infrastructure Investment Fund Board Food processing Food processing is a sunrise sector that has gained prominence over the years in the state. FPI in Kerala constituted organised as well as unorganised units. Spices, pickles and marine products are the major food product exports from Kerala. Kerala has India s first food processing industrial park in Malappuram and seafood processing park in Alappuzha. The state also has a coconut-based food processing plant in Kinalur. An amount of US$ 2.44 million was sanctioned to establish a mega food park at Cherthala for processing of seafood products as per budget During , under the plan scheme for technology modernisation/ upgradation/ establishment of food processing units in the state, 20 units were assisted in the state of Kerala with an outlay of US$ 4.48 thousand. Further, under National Mission on Food Processing (NMFP) scheme, 23 projects were sanctioned during , by the state government. Moreover, a total of 2 projects each were sanctioned under the Mega Food Parks scheme, Food Testing Laboratory Scheme as well as Research & Development Scheme, during Note: FPI - Food Processing Industry Source: State Annual Budget

63 SINGLE-WINDOW APPROVAL MECHANISM A Single-Window Clearance Mechanism (SWM) was established in June 2000, with an aim to expedite clearances for new industrial projects. A state-level board, headed by the Chief Secretary, issues clearances within a time frame of 45 days to medium and large scale industries. KSIDC is the single point of contact and convenor of the state board. District-level boards have been constituted for issuing clearances required by small scale industries. The District Collector of each district is the Chairman and General Manager of the Board; the District Industries Centre (DIC) is the convenor for such boards. The stipulated time frame for clearances is 60 days. Industrial Area Boards have been set up in various industrial areas of the state for the clearance of projects. An officer, not below the rank of District Collector, is Chairman of each Board, with the Designated Authority of the Industrial Area as Convenor. The stipulated time frame for obtaining the clearances is 30 days. SWM structure in Kerala State Board District Boards Industrial Area Board Chief Secretary District Collector An officer not below the rank of District Collector Source: KSIDC 63

64 KEY INVESTMENT PROMOTION OFFICES (1/2) Agency Description The aim of the organisation is to speed up industrial growth in Kerala through infrastructure support. Kerala Industrial Infrastructure Development Corporation (KINFRA) It operates industrial parks in various sectors. It has three newly operational parks: Kera Park (in Thrissur), Spices Park (Idukki) and Rubber Park (Pathanamthitta). KINFRA s four upcoming projects include a marine park in Beypore, a technology park in Ramanattukara, a food park at Wayanad and an industrial park in Palakkad. KITCO Limited (formerly, Kerala Industrial and Technical Consultancy Organisation Limited) The organisation is involved in providing technical consultancy assistance to banks by appraisal of projects for priority sector lending and to entrepreneurs in the Small & Medium Enterprises (SMEs) sector by way of preparation of project reports and market studies and by conducting training programmes for entrepreneurship development. Directorate of Industries and Commerce It is the implementing agency for the Department of Industries, Government of Kerala. It provides infrastructure facilities for the small scale sector by acquiring land and developing facilities such as roads, water supply, electricity and civil works. 64

65 KEY INVESTMENT PROMOTION OFFICES (2/2) Agency Small Industries Development Corporation Description It provides infrastructure facilities to the small-scale sector through its major and mini industrial estates. It owns and operates production units, raw materials depots, industrial estates/mini industrial estates, marketing cell/emporia/centres, civil construction division, IT&TC division, export & import/project division and industrial parks. Purpose: Formed in 1961 with an objective of promoting, stimulating, financing and facilitating the development of large- and medium-scale industries in Kerala. Kerala State Industrial Development Corporation (KSIDC): the single-window clearance and monitoring agency Acts as a promotional agency, involved in catalysing the development of physical and social infrastructure required for the constant growth of industry. Composition: Consists of a group of professionals from various fields including engineering, management, finance and law. Services offered include project lending, single-window clearance, equipment purchase loans and consultancies. 65

66 CONTACT LIST (1/2) Agency Directorate of Industries and Commerce Kerala State Industrial Development Corporation Limited (KSIDC) KITCO Limited Kerala Industrial Infrastructure Development Corporation (KINFRA) Kerala Small Industries Development Corporation Contact information Vikas Bhavan P O Thiruvananthapuram Kerala Phone: Fax: tvm_dindust@sancharnet.in T C XI/266, Keston Road, Kowdiar, Thiruvananthapuram Phone: Fax: ksidc@vsnl.com P B No 4407, Puthiya Road, NH Bypass, Vennala, Cochin Phone: / Fax: mail@kitco.in KINFRA HOUSE, TC 31/2312 Sasthamangalam, Thiruvananthapuram Phone: Fax: kinfra@vsnl.com Housing Board Building, 6th floor, Santhi Nagar, P B No 50 Thiruvananthapuram Phone: , , , Fax: sidcoho@yahoo.com 66

67 KEY APPROVALS REQUIRED (1/2) Approvals and clearances required Department Estimated time Incorporation of the company Registration, Industrial Entrepreneurs Memorandum, Industrial Licences Allotment of land Permission for land use Environment approval for the site No-objection certificate and consent under Water and Pollution Control Act Approval of construction activity and building plan Sanction of power Registration under State s Sales Tax Act and Central and State Excise Act Registrar of Companies District Industries Centre for small scale industries and KSIDC for large and medium industries State Department of Industries/KSIDC/KINFRA State Department of Industries, Kerala Town and Country Planning Department Kerala State Pollution Control Board and Central Ministry of Environment and Forests Kerala State Pollution Control Board Kerala Town and Country Planning Department Kerala State Electricity Board (KSEB) Sales Tax Department, Central and State Excise Departments Single window clearance: The state s single-window facility clears investment proposals in 45 to 60 days on an average; the single-window mechanism helps obtain all approvals necessary for the investment proposals within the specified time frame. 67

68 KEY APPROVALS REQUIRED (2/2) Approvals and clearances required Time to Complete (Days) Approval for director identification number (DIN) from the Ministry of Corporate Affairs portal (National)-Online 1 Approval of digital signature certificate from private agency authorized by the Ministry of Corporate Affairs (National) 3 Approval for reserve a company name with the Registrar of Companies (ROC) (National)-online 2 Stamp the company documents at the State Treasury (State) 5 Obtain a Permanent Account Number (PAN) from an authorised franchise or agent appointed by the National Securities Depository Ltd (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd, as outsourced by the Income Tax Department (National) Obtain a Tax Account Number (TAN) for income taxes deducted at the source from an authorized franchise or agent appointed Register with the Office of Inspector, Shops and Establishment Act (State/ Municipal) 14 Register for Value-Added Tax (VAT) at the Commercial Tax Office (State) 25 Register for Profession Tax at the Profession Tax Office (State) 9 Source: Kerala Economic Review , World Bank Group 68

69 COST OF DOING BUSINESS IN Cost parameter Cost estimate Source Industrial land (per sq m) US$ (Cochin) Industry sources Five-star hotel US$ per room per night Leading hotels in the state Office space rent (per sq ft) US$ per month Industry sources Residential space rent (2,000 sq ft house) US$ per month Industry sources Fixed Power Tariff (per kwh) Domestic: 1.1 to 3.3 cents (US) Commercial: 3.3 to 13 cents (US) Industrial: cents (US) Kerala State Electricity Regulatory Commission, as of March 2015 Labour (minimum wages per day) US$ Ministry of Labour and Employment, Government of India Water (1,000 litres) Commercial and industrial: US 22 cents to US 55 cents Kerala Water Authority Source: Kerala Government websites and Industry sources, Ministry of Labour and Employment, Government of India, Kerala Electricity Regulatory Commission, Kerala Water Authority 69

70 STATE ACTS & POLICIES (1/5) Objectives Kerala Sports Policy 2015 To ensure the development of athletes as leaders and role models in sports and society. Sports related sectors to incorporate sports intentionally to achieve social development. To ensure that sports events are designed to benefit the host community and local economics. Read more Kerala Industrial & Commercial Policy Amended 2015 To promote Kerala as a prime destination for industrial investments with environmental protection. Revamp Kerala into an entrepreneurial state by encouraging private investment in all sectors, particularly agro processing, services and commerce, and new emerging sectors. Read more Kerala Agricultural Development Policy 2015 The farm lands are to be protected and should not be put for any other use than farming activities The agriculturally potential land is to be identified and demarcated using modern technologies such as remote sensing, satellite imagery, etc., and a database is to be made. Read more Kerala Technology Startup Policy 2014 Purpose of this policy is to inaugurate minimum ten technology business incubators for different sectors of the state. Government also aims to attract foreign investments. Read more Kerala Solar Energy Policy 2013 Target installed capacity of 2,500 MW by Set up floating and off-shore generation units. Make use of solar energy compulsory for industries; incentive to be provided for solar power Read more 70

71 STATE ACTS & POLICIES (2/5) Objectives Kerala Tourism Policy 2012 To create an environment for investment. To market Kerala as a visible global brand in domestic and international markets. To ensure quality visitor experience. Read more Kerala Small Hydro Power Policy 2012 To harness green and clean natural resources in the state for environmental benefits and energy security. Read more Kerala IT Policy 2012 To plan, develop and market the state as the most preferred IT/ITeS investment/business destination in India. Read more Kerala State Housing Policy To offer affordable and adequate housing for the state s citizens To meet the housing needs of the landless tribal, fishermen, traditionally employed and poor citizens of the state Read more SEZ Policy 2008 To make Kerala s economy more export-oriented by granting various exemptions and concessions. Read more 71

72 STATE ACTS & POLICIES (3/5) Objectives The Micro, Small And Medium Enterprises Development Act, 2006 The purpose of this policy is the promotion and development of micro, small and medium enterprises. The policy is also enhancing the competitiveness between micro, Small and medium enterprises. Read more Kerala Biotechnology Policy 2003 The policy focuses on catalysing the development and application of biotechnology while taking advantage of the state s resources and keeping global requirements in perspective. Read more Kerala State Training Policy To strengthen governance in the state by building capacity amongst various categories of civil servants To impart training to every state civil servant once in every five years Read more Kerala liquor policy Purpose of the policy is to legalize the production, transportation and consumption value of liquor in the state. The policy also covers transparent licensing system for intoxicating products. Read more 72

73 ANNEXURE Exchange Rates (Fiscal Year) Year INR equivalent of one US$ Q Source: Reserve Bank of India 73

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