KERALA JULY 2015 GOD'S OWN COUNTRY. For updated information, please visit

Transcription

1 1

2 Executive Summary... 3 Advantage State Kerala Vision Kerala An Introduction Budget Infrastructure Status 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 Kerala has the highest literacy rate (94.6 per cent) and sex ratio (1,084 women for 1,000 men) in India. Literacy rate for male population is the highest at per cent. In , Kerala received NRI remittances of US$ billion. In , NRI remittances of the state were US$ 2.3 billion, up by 10 per cent compared to 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. Largest recipient of foreign remittances in the country Ranks second in Investment Climate Index Source: Economic Review of Kerala News articles, Census 2011 NRI Achievers Bureau 3

4 EXECUTIVE SUMMARY (2/2) Strong agricultural sector First international container transhipment terminal Presence of world class technology park Cochin-favourite port for luxury cruses Kerala is a leading agricultural state in the country and the largest producer of rubber, pepper, coconut and coir. In , the state accounted for 73% share in the pepper production and 69% share in the natural rubber production of the country. Kerala has the first international transshipment terminal in India, having a design capacity of around 4 million TEUs and providing better connectivity between Kerala and other ports in India. Kerala has been promoting knowledge-based industries such as IT/ITeS, computer hardware and biotechnology. It is the first state having a technology park with CMMI level 4 quality certification and a world-class IT campus in Thiruvananthapuram. Cochin port is one of the favourite ports for luxury cruses. Number of cruise arrivals at Cochin port stood at 34 in that reached to 39 by Source: Economic Review of Kerala , Kerala IT Policy, TEU s = Twenty-foot Equivalent Unit Rubber Board, Ministry of Commerce and Industry, Government of India Kerala State Co-operative Rubber Marketing Federation Cochin Port Trust, New Indian Express 4

5 ADVANTAGE: High economic growth Growing demand 2014 Foreign tourist arrivals: 0.92 million Kerala s gross state domestic product (GSDP) surged at a compound annual growth rate (CAGR) of 9.9 per cent 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. Rich labour pool Leader in tourism Advantage Kerala 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. The state has over 160 engineering colleges. 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 and domestic tourist arrivals increased respectively by 8 per cent and 10.4 per cent during 2014 over E Foreign tourist arrivals: 3.0 million 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, GSDP: Gross State Domestic Product 5

6 VISION 2030 Affordable and clean power to all. Exploit the full potential of hydroelectric generation. 100 per cent electrified households with 24*7 availability. Green, sustainable and safe transport. Growth oriented labour welfare policy. Connecting labour supply with demand. Increasing employment opportunities. Transport Energy Labour Education Vision 2030 Increase the share of manufacturing to 10 per cent of the GSDP by Sustained increase in employment in manufacturing. 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 per cent in 2012 to 4-5 per cent by Agriculture & Set up three medical cities livestock by Provide health insurance cover to all. 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. Health Industry Forestry Increase the share of forestry in GSDP to 0.5 per cent. Increase the productivity of forests through improved management of resources. 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 Source: Maps of India 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. Thiruvananthapuram Geographical area (sq km) 38,863 Administrative districts (No) 14 Population density (persons per sq km) 860 Total population (million) Kerala is located along the coastline to the extreme southwest 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. Kerala 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 Survey 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 TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Kerala GSDP growth rate (%) TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Kerala Per capita GSDP (US$) 1,961 1, TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Kerala 4,084.67^ 272, Central Electricity Authority, as of May 2015 Wireless subscribers (No) 31,775,409* 973,347,094 Telecom Regulatory Authority of India- April 2015 Broadband subscribers (No) 355,0000** 100,760,000 Telecom Regulatory Authority of India- April 2015 National Highway length (km) 1, , National Highway Authority of India April Indian Ports Association Airports Authority of India Physical Infrastructure Installed power capacity (MW) Major and minor ports (No) Airports (No) ^As of June 2015, *As of May 2015, ** As of March

9 IN FIGURES (2/2) Parameter Kerala All states Source Literacy rate (%) Census, 2011 Birth rate (per 1,000 population each year) SRS Bulletin, September 2014 FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, April 2000 to March 2015 Outstanding investments (US$ billion) ,414.2 CMIE ( ) PPP projects (No) 31 1,409 DEA, Ministry of Finance, Government of India SEZ (No) Notified as of March 2015, Ministry of Commerce & Industry Social Indicators Investment Industrial Infrastructure PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System 9

10 ECONOMIC SNAPSHOT GSDP At current prices, Kerala s GSDP was about US$ 68.5 billion in GSDP of Kerala at current prices (US$ billion) The state s GSDP recorded at a CAGR of 9.9 per cent between and CAGR 9.9% Growth was mainly driven by secondary and tertiary sectors Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Kerala 10

11 ECONOMIC SNAPSHOT NSDP At current prices, Kerala s NSDP was about US$ 59.8 billion in NSDP of Kerala at current prices (US$ billion) NSDP grew at a CAGR of 9.8 per cent between and CAGR 9.8% Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Kerala 11

12 ECONOMIC SNAPSHOT PER CAPITA GSDP GSDP per capita of Kerala at current prices (US$) CAGR 1,8921,8411,9071, % 1,678 1,430 1,2911, , Per capita GSDP increased at a CAGR of 9.3 per cent between and The state s per capita GSDP was US$ 1,961 during compared to US$ 810 during Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Kerala 12

13 ECONOMIC SNAPSHOT PER CAPITA NSDP NSDP per capita of Kerala at current prices (US$) ,270 1,672 1,630 1,668 1, ,135 1,150 1, CAGR 9.2% Per capita NSDP grew a CAGR of 9.2 per cent between and Kerala s per capita NSDP was US$ 1,713 in compared to US$ 711 during Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Kerala 13

14 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP In , the tertiary sector contributed per cent to the state s GSDP at current prices, followed by the secondary sector at per cent. The tertiary sector grew at a CAGR of 11.0 per cent between and Growth was driven by storage, transport, financial and real estate segments. The secondary sector grew at an average rate of 8.7 per cent between and Growth was led by manufacturing, construction, and electricity, gas & water supply segments. The primary sector expanded at an average rate of 7.3 per cent between and , mainly supported by growth across agriculture and mining & quarrying segments. GSDP composition by sector CAGR 59.60% 11.0% 22.50% 8.7% 17.90% 7.3% 20.06% Primary 65.85% 14.09% Secondary Tertiary Source: TechSci Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics of Kerala Economic Survey

15 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION Agriculture and allied sectors contributed 11.8 per cent to Kerala s GSDP in Kerala is one of the leading pepper producers in the country. During , production increased by 21.9 per cent to 43,600 metric tonnes compared to The state is also one of the largest producers of natural rubber in India. Production was 655,000 metric tonnes during During , total area under foodgrains and oilseed crops stood at thousand hectares, wherein majority of the share is accounted to foodgrains. Under foodgrain crops jowar and maize are the prominent crops. During , the production of jowar and maize was recorded as metric tonnes and 62.0 metric tonnes respectively. Crop Annual production in (metric tonnes) Tapioca 2,581,382 Rubber 6,55,000 Banana 528,205 Rice 161,476 Areca nut* 119,349 Coffee 67,700 Tea 67,200 Pepper 43,600 Cashew nut 33,375^ Ginger 20,791 Pulses 3,019^ Groundnut Turmeric 6,253^ Coconut 5,969 Total Cereals 564,635^ Source: Directorate of Economics and Statistics, *Production in million nuts, Values, ^In Tea Board India, Directorate of Economics and Statistics, Kerala 15

16 ECONOMIC SNAPSHOT EXPORTS Exports from Cochin port improved at a CAGR of 29.7 per cent to 4.2 million MT from to In value terms, exports from Cochin port increased at a CAGR of 10 per cent to reach US$ 4,028 million by ,393 3,611 3,709 4,046 4, CAGR 10% The increase in exports from CSEZs in the past years can be attributed to a substantial rise in gems and jewellery exports. Gems and jewellery accounted for 18.7 per cent share in the overall exports from the CSEZ. Total exports turnover from CSEZs (US$ million) 2, Cashew kernels Sea Foods Coir products 64.2 Spices Coffee Miscellaneous Tea (US$ million) Sectors Exports break-up, Cochin Port ( ) Source: Economic Review of Kerala CSEZ - Cochin Special Economic Zone 2,

17 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to DIPP, FDI inflows to the state (including Lakshadweep) totalled US$ 1.21 billion during 2000 to March As of January 2015, The Kannur airport received additional investments of US$ 316 million for development activities. Mega projects conceptualised and developed in Kerala include Supplementary Gas Infrastructure Project by Kerala Gail Gas Limited (US$ 400 million), Kochi Metro Rail Project (US$ 900 million), and a monorail project in Thiruvananthapuram (US$ 682 million). FDI equity inflows, to * (US$ million) As of March 2015, US$ 4.1 billion has been sanctioned for infrastructure development for the next three years As of 2015, growth of 15% in the state manufacturing sector and 8% in the country s manufacturing sector is expected owing to rising investments in Make in Kerala project As of 2015, an investment of US$ 6.5 million has been sanctioned for Class I works under Minor Irrigation project and US$ million is approved for General Education The state government has sanctioned investments of US$ 100 million, US$ 156 million and US$ 8.3 million for the Vizhinjam International Seaport project, Kochi Metro Rail Project and for land acquisition for Kozhikode and Thiruvananthapuram international airports respectively. Source: DIPP - Department of Industrial Policy & Promotion, Including Lakshadweep, Government of Kerala, News articles 17

18 ANNUAL BUDGET Annual Budget Annual Budget Sector Investment (US$ million) Sector Investment (US$ million) Agriculture Housing 1.24 Soil and water conservation Science, technology & environment Animal husbandry 0.36 General education Dairy development Transport Development of fisheries sector & welfare of fishermen Social justice 0.83 Forest & wildlife Tourism Panchayats 3.32 Art & culture 0.17 Urban development 3.32 Museum & zoo 2.70 Rural development 8.29 Industries Water resources 4.64 Water supply & sewerage Power Source: Finance Department, Government of Kerala, India 18

19 PHYSICAL INFRASTRUCTURE ROADS As of March 2015, around 6.66 km of PWD roads are made of cement concrete, 30,744.4 km are black-topped, and km are water-bound macadam. Nearly 97 per cent of the total roads are black-topped surfaces. During 12th Five Year Plan the state government proposed to develop 290 kilometers of roads under various scheme. As of , an allocation of US$ 36.6 million is allocated to KSRTC (Kerala State Road Transport Corporation). State government has sanctioned an amount of US$ 0.49 million for the construction of Palluruthy-Naalpathady road. Source: Maps of India In Kerala, the Public Works Department (PWD) has a total road length of 33, km and 1, km of national highways. The state is well-connected to its neighbouring states and other parts of India through nine National Highways. Agencies maintaining roads in Kerala include the Public Works Department (PWD); panchayats; municipalities, corporations; the departments of forests, irrigation, railways; and the Kerala State Electricity Board (KSEB). For the same year, an amount of US$ 1.3 million is set apart for the infrastructural development and modernisation of the Workshops and Depots of KSRTC. 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 19

20 PHYSICAL INFRASTRUCTURE RAILWAYS Kerala is well connected to other parts of the country via railways. As of March 2014, it had a railway network of 1,257 km, with around 200 railway stations and 13 railway routes. 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. Railway divisions in Thiruvananthapuram, Palakkad and Madurai jointly carry out railway operations in Kerala. Works for Kochi Metro Rail System Phase 1 are underway. It involves investment of US$ 864 million and is expected to be completed in mid2016. First train is expected to be operational by the end of January The second phase i.e. Maharajas College to Pettah (about 7.5 kms and 6 stations) is in progress. As per Budget , Government of India has allocated US$ million for Kochi Metro Rail Project. Source: Economic Review of Kerala, Kerala State Industrial Development Corporation Ltd, Government of Kerala Source: Maps of India 20

21 PHYSICAL INFRASTRUCTURE AIRPORTS (1/2) Kerala has three airports handling domestic and international flights, located at Thiruvananthapuram, Kochi and Kozhikode. The Cochin International Airport Limited (CIAL) has displayed consistent growth in both passenger traffic and aircraft movements since it opened in The airport handled 6.45 million passengers in , an increase of per cent from the previous year. In , Kerala witnessed arrival of million tourists, out of which 11.7 million tourists were domestic and remaining were foreign tourists. The airport recorded 47,072 aircraft movements during , per cent higher compared to the previous year. During , the aircraft movement reached to 52,800. CIAL s cargo division turnover increased 17 per cent as total cargo handled stood at 54,440 tonnes in against the previous year s 46,530.3 tonnes. As per Budget , Government of India has allocated US$ 8.3 million for acquisition of land for international airports at Calicut and Thiruvananthapuram. Source: Economic Review of Kerala, , Airports Authority of India, Kerala State Industrial Development Corporation Ltd, News articles, Government of Kerala Airport Source: Maps of India 21

22 PHYSICAL INFRASTRUCTURE AIRPORTS (2/2) In order to promote the tourism sector of the state, Union Minister of State for Tourism (Independent Charge) launched Visit Kerala campaign in April Prime feature of this campaign are as follows The major focus of the campaign is to increase the number of tourist arrivals in Kerala to 13.7 million by the end of The government is planning to use social media to promote tourism in Kerala. To introduce Kerala s authentic cuisines, government is planning to arrange food festivals in major Indian cities like Mumbai and New Delhi. To ensure greater women empowerment, a major share of women personnel are expected to be hired in the tourism industry. Source: Government of Kerala 22

23 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. Kerala is constructing the Vizhinjam deep-water international container transhipment terminal at Vizhinjam, 17 km south of Thiruvananthapuram, under the PPP mode. Existing ports Major ports Intermediate ports Cochin Neendakara Alappuzha Kozhikkode Government has already approved Cochin Port s land utilisation policy, which will be placed before cabinet. In , the Government prepared a master plan for Kollam Port City. This initiative is a part of Coastal Shipping Project implementation. Minor ports Source: Cochin Port Trust, ipa.nic.in, Kerala Ports, Economic Review of Kerala, State Planning Board Vizhinjam Valiyathura Vadakara Ponnani Thankasserry Kayamkulam Manakkodam Munambam Beypore Thalasserry Manjeswaram Neeleswaram Kannur Azhikkal Kasaragode 23

24 PHYSICAL INFRASTRUCTURE PORTS (2/4) CAGR 4.5% Bulk cargo handling during grew by 15.2 per cent compared to , whereas oil cargo handling increased by 3.5 per cent and container cargo edged up by 3.2 per cent. Cochin port traffic (million tonnes) During , total trade volume handled at the Cochin port surged to 21.5 million tonnes from 20.9 million tonnes in The Union Ministry of Defence and the state government are endeavouring towards more commercialisation of the Cochin port. Kerala Maritime Board has been constituted for the administrative control and management of non-major ports in Kerala. A token provision is provided for the functioning of Board to supplement additional funds later. the Source: Cochin Port Trust, News articles, Economic Survey

25 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 arrivals at Cochin port Around 28,342 cruise passengers embarked in Kochi in During , 39 cruise liners arrived at the Cochin port Year Passenger , , , , Cruise passenger in Kerala 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. Source: Cochin Port Trust, New Indian Express Economic Survey , News article 25

26 PHYSICAL INFRASTRUCTURE PORTS (4/4) CATEGORY WISE DISTRIBUTION OF VESSELS ENTERING THE COCHIN PORT Year Number of Vessel Containers Coal Fertilizers & raw materials Others Food Grains General Cargo Tankers Passenger cum No Cargo Source: Cochin Port Trust, New Indian Express 26

27 PHYSICAL INFRASTRUCTURE POWER (1/2) As of June 2015, the state had total installed power generation capacity of 4, MW, which consisted of 2, MW under state utilities, 1, MW under central utilities, and MW under the private sector. Installed power capacity (MW) CAGR 2.17% Thermal power contributed 1, MW to total installed power generation capacity. Hydropower (1, MW), nuclear power ( MW), and renewable power ( MW) are the other main energy sources. 3, * , , Kerala is among the prominent Indian states to have achieved 100 per cent rural electrification. 3, , , Kerala s state utilities, which account for per cent of overall capacity, generate per cent of the energy through hydroelectric power plants, and the remaining per cent through thermal and renewable power generation plants. 4, ,084.7 Source: Central Electricity Authority, Business Standard, *As of June

28 PHYSICAL INFRASTRUCTURE POWER (2/2) Budget Highlights : An investment of US$ million has been sanctioned to enhance power generation through different methods such as thermal, hydro, coal etc. An investment of US$ 0.16 million has been sanctioned to establish a coal based power plant at Cheemeni as a joint venture of KSEB & KSIDC. An investment of US$ 2.5 million has been sanctioned for the Senkulam Augmentation scheme which is projected to be commissioned by February An amount of US$ 3.3 million has been sanctioned for the Chethan kotta small hydro electric project. The project is expected to be commissioned by October Source: Finance Department, Government of Kerala, India 28

29 PHYSICAL INFRASTRUCTURE TELECOM Kerala had an overall tele-density of per cent as against an all-india average of per cent, as of April The state has 1,266 telephonic exchanges. About 98.0 per cent of Kerala's telephone exchanges have internet connectivity through the National Internet Backbone (NIB). VSNL has an international communication gateway in Kochi, with two high-speed submarine cable landings (SEAME-WE-3 and SAFE), offering 15 gigabytes per second (Gbps) bandwidth. According to the Telecom- Regulatory Authority of India (TRAI), as of May 2015, Kerala had nearly million wireless subscribers and 2.5 million wire-line subscribers (including Lakshadweep). Currently, Kerala is the largest revenue contributing state of BSNL and accounts for nearly 25 per cent of the company s national revenue. The company expects to post a record profit of around US$ 66.4 million during As of May 2015, the wireless market share of BSNL in Kerala is percent. Telecom infrastructure (May 2015) Wireless subscribers 31,775,409 Wire-line subscribers 2,547,365 Broadband subscribers 355,0000* Post offices 5,067* Telephone exchanges 1,266^ Teledensity (in per cent) 95.35^ Source: Telecom Regulatory Authority of India, Economic Review of Kerala, , *As of March 2014, ^As of April 2015 Major telecom operators in Kerala Bharat Sanchar Nigam Limited (BSNL) Bharti Airtel Aircel Limited Vodafone Essar IDEA Cellular Tata Teleservices Reliance Communications Source: Telecom Regulatory Authority of India 29

30 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE Under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM), ten projects worth US$ 238 million have been approved during for the development of urban infrastructure in Thiruvananthapuram and Kochi. As on 31st March 2014, 10 projects with a total cost of US$ million are in progress. 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. Construction of the first phase of SmartCity Kochi, a self-sustained industry township project that is a conglomerate promoted by Dubai Holding member TECOM Investments for knowledge-based companies, would be completed within 18 months from the start of construction in June Kudumbashree, the State Poverty Eradication Mission, is involved in Clean Kerala Business to collect door-to-door household waste and process it for economic benefits. A Rural Water Supply and Environmental Sanitation Project had been implemented by the World Bank in September 2008; another similar project is under implementation and is expected to be completed by June 2017, with an estimated cost of US$ million. The World Bank has approved a US$ 216 million loan for the Kerala State Transport Project II to support the Government of Kerala improve the condition, traffic flow, and safety of its road network. Source: JNNURM, Ministry of Urban Development, Economic Review of Kerala, 2012, World Bank 30

31 DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS (1/2) As of March 2015, Kerala had around 31 PPP projects, spreading across various sectors such as airports, roads, tourism, urban infrastructure and ports. Sector PPP type Contact authority Project cost (US$ million) Airports BOO Airport Authority of India 50.3 Vallarpadam Container Transshipment Terminal Ports BOT-Toll Cochin Port Trust LNG Regasification Terminal at Cochin Port Ports NA Ministry of Shipping Crude Oil Handling for Kochi Refineries Ltd Ports Lease Cochin Port Trust Thrissur-Edapalli Roads BOT-Toll National Highways Authority of India 51.8 Six laning of Vadakkancherry-Thrissur section Roads BOT-Toll National Highways Authority of India Four laning of Walayar-Vadakkancherry section Roads BOT-Toll National Highways Authority of India Project name Cochin International Airport Source: Overseas Indian Facilitation Centre BOT: Build-Operate-Transfer, BOO: Build-Own-Operate 31

32 DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS (2/2) Project name Sector PPP type Contact authority Project cost (US$ million) Four-laning of Karnataka & Kerala Border to Kannur section Roads BOT-Toll National Highways Authority of India Kannur -Kuttipuram Package- 2 Roads BOT-Toll National Highways Authority of India Kannur-Kuttipuram Package 1 Roads BOT-Toll National Highways Authority of India Vizhinjam Port International Ports BOT - Annuity Directorate of Ports, Government of Kerala Development of a new bridge connecting Mattancherry and Willingdon Island at Cochin Roads BOT-Toll The Greater Cochin Development Authority 4.5 Tourism BOO Bekal Resorts Development Corporation BRDC KTDC 9.1 Kochi Metro Rail Project Urban development BOT Annuity Kerala Industrial Infrastructure Development Corporation Trivandrum City Road Improvement Urban development BOT-Toll Kerala Road Fund Board 18.6 Development of resorts at Bekal Kasaraode Dist Source: Overseas Indian Facilitation Centre BOT: Build-Operate-Transfer, BOO: Build-Own-Operate 32

33 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 Hindustan News Print Limited Infopark Cochin Port Trust, Puthuvypeen Cochin Port Trust, Vallapadom KSITI, Pallipuram KINFRA, Kochi KSITI, Purakkad Unitech Real Estate Parsavnath Developers Electronics Technology Park Smart City Infrastructure KINFRA Carborundum Universal Limited MM Tech Towers, Alwaye Emmar MGF, Alwaye Techno Park SEZ - I KSITI, Kollam Technopark Pallipuram Techno Park SEZ - II Source: 33

34 DEVELOPMENT PROJECTS: SEZs (2/3) Kerala has eight operational SEZs. Operational SEZs in Kerala Name/Developer Location Primary industry Cochin Multi-product Kochi IT/ITeS Electronic Technology Park-SEZ-I Thiruvananthapuram IT/ITeS Electronic Technology Park-SEZ-II Thiruvananthapuram IT/ITeS Vallarpadam Port-based Thiruvananthapuram Animation & gaming Cherthala IT/ITeS Pathanamthitta Food processing Cochin SEZ Infopark SEZ Cochin Port Trust KINFRA Film & Video Park Kerala State Information Technology Infrastructure Ltd Kerala Industrial Infrastructure Development Corporation (KINFRA) Source: SEZ: Special Economic Zone 34

35 DEVELOPMENT PROJECTS: SEZs (3/3) Kerala had 32 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 IT (Animation & gaming) Smart City (Kochi) Infrastructure Pvt Ltd Kakkanad, Ernakulam IT/ITeS Kerala State Information Technology Infrastructure Ltd (KSITIL) Cherthalai, Alappuzha IT/ITeS Kunnathunad, Ernakulam IT/ITeS Ernakulam Airport based Infoparks, Kerala Cochin International Airport Ltd Source: SEZ: Special Economic Zone 35

36 DEVELOPMENT PROJECTS: NATIONAL INVESTMENT AND MANUFACTURING ZONES (NIMZ) NIMZ The Central Government has granted in-principle approval to the Kochi-Palakkad National Investment and Manufacturing Zone (NIMZ) in The NIMZ is proposed to be set up in an area of 6,000 acres across 20 identified nodes. State-of-the-art infrastructure Opportunity Total employment potential of around 0.5 million The state was exempted from the provisions related to geographical continuity in the National Investment and Manufacturing Zone. Other infrastructure facilities required to be created include internal roads, drainages, water treatment plants, and gas-based power plants for a total capacity of 2,500 MW. The cost of infrastructure development will exceed US$ 8.8 billion including the cost of land. The opportunities available in these projects are industrial plots, export and import-related opportunities, packaging services, logistic services, etc. Kerala expects to generate direct employment for 0.5 million people in five years and indirect employment for 2.5 million people in 10 years. NIMZ - National Investment and Manufacturing Zone, The Hindu 36

37 SOCIAL INFRASTRUCTURE EDUCATION (1/3) Kerala has the highest literacy rate among all states in the country. As of , the state has a literacy rate of 94.6 per cent; male and female literacy rates stood at per cent and per cent, respectively. As of , about per cent of total students were enrolled in government schools, per cent in government-aided private schools, and 6.81 per cent in unaided private schools. As of , girl students accounted for around per cent of total student enrolment in schools in the state. Kerala has 2,964 higher secondary schools as of Of these, 1,216 (41.02 per cent) were government schools, 1,210 (40.83 per cent) aided schools, and the remaining 538 (18.15 per cent) unaided schools. Educational infrastructure ( ) Schools 12,626 Universities 16 Engineering institutions 161* Arts and science colleges 197 Polytechnics 48 Source: Economic Survey of Kerala, and *As of

38 SOCIAL INFRASTRUCTURE EDUCATION (2/3) Kerala primary education statistics ( ) Schools (No) Lower primary: 6,749 Upper primary: 2,913 High schools: 2,964 School dropout rate (%) ( ) Lower primary: 0.60 Upper primary: 0.27 High school: 0.56 Pupil-teacher ratio 26:1 Student strength (in million) Share of total student strength (%) Government Government-aided Unaided Total Nature of schools (201415) Source: Economic Survey of Kerala and , News Articles 38

39 SOCIAL INFRASTRUCTURE EDUCATION (3/3) Kerala is home to premier institutions such as: Technical institutions under Directorate of Technical Education-2014 Indian Institute of Management, Kozhikode. Institutions Numbers Indian Institute of Space Science and Technology, Thiruvananthapuram. Government technical high schools 39 National Institute of Technology, Calicut. Government commercial institutes 17 Tailoring and garment making training centres 42 Vocational training centres 4 National University of Advanced Legal Studies, Kaloor. Central Institute of Fisheries Engineering Training, Kochi. Nautical and Major medical colleges in Kerala Central Institute of Fisheries Technology, Cochin. Central Marine Ernakulam. Fisheries Institute of Human Thiruvananthapuram. Research Institute, Resource Development, Besides, the medical council has received 13 proposals from Kerala. Medical colleges: 25 Dental colleges: 22 Nursing colleges: 111 Ayurveda medical colleges: 18 Homeopathy medical colleges: 5 Siddha: 2 Source: Economic Review of Kerala, NHP India, Director of Technical Education, Kerala, University Grants Commission 39

40 SOCIAL INFRASTRUCTURE HEALTH Kerala has good health infrastructure with 681 primary health centres, 25 dispensaries and 233 community health centres. As of 2014, Kerala s total healthcare institutions, 1,281 are Allopathic, three Ayurvedic and 661 under Homoeopathic. As of 2014, the 1,281 health institutions under the Allopathic segment contained 37,415 beds under the Health Services Department. In budget, state government announced plans to invest US$ million for the development of health sector. Health infrastructure as of 2014 Primary health centres: 681 Community health centres: 230 Taluka hospitals: 79 District Hospitals: 16 General hospital: 18 TB clinics/centres: 17 Specialty: 20 24x7 PHC: 171 Others: 49 Total: 1,281 Health indicators as of 2014 Birth rate* 15.2 Death rate* 7.0 Infant mortality rate** 12 Life expectancy at birth (years) Male 71.4 Female 76.3 Source: Sample Registration System (SRS) Bulletin September 2014 Economic Review of Kerala, *Per thousand persons, **Per thousand live births State government of Kerala announced plans to invest US$ 0.89 million for the establishment of a cath Lab facilities in the district hospital, Kollam and the General hospitals of Ernakulam and Kozhikode. Government Source: Economic Review of Kerala,

41 CULTURAL INFRASTRUCTURE (1/2) Kerala has been rated as one of the Thirteen Paradises of the World by National Geographic Traveller; it has been promoted as God s Own Country. Health and wellness tourism in Ayurvedic medicine has grown tremendously in the past years. Sri Padmanabhaswamy temple makes the state one of the attractive religious tourism spots in India. Popular tourist locations Beaches Kovalam, Varkala, Marari, Bekal and Kannur Backwaters Kumarakom, Alappuzha, Kollam, Kochi and Kozhikode Hill stations Ponmudi, Munnar, Wyanad and Vagamon Wildlife reserves Periyar Wildlife Sanctuary, Eraviikulam National Park, Thattekad Bird Sanctuary Parambikulam Wildlife Sanctuary Other temples in Kerala, such as Guruvayoor and Sabarimala, are also major religious attractions. In June 2015, Kerala organised a road show in Shanghai and participated in Beijing International Tourism Expo (BITE) The BITE 2015 witnessed participation of 70 buyers from the Chinese travel and tourism industry. The main objective of the initiative was to strengthen the Spice Route heritage with other countries and promote sustainable tourism aimed at achieving world peace. Source: Department of Tourism, Government of Kerala, News Articles, Economic Review of Kerala

42 CULTURAL INFRASTRUCTURE (2/2) Art and culture are being fostered and promoted through various bodies such as: New sports infrastructure projects in Kerala Kerala Sahitya Academy To promote Malayalam literature. New hockey stadium at Kollam Kerala Sangeetha Nataka Akademi To promote traditional arts. Shooting range at Vattiyoorkkavu, Thiruvananthapuarm Kerala Lalithkala Academy To promote painters and sculptors. V.K.N. Indoor Hall, Thrissur Kerala Folklore Academy To promote Kerala folklore. Kerala State Chalachitra Academy Academy for motion pictures. Kerala Kalamandalam To teach traditional dances. The cities in Kerala have modern amenities for recreation such as golf courses, shopping malls, theatres, cafélounges and resto-bars. Kerala got 25 new sports facilities owing to the National Games held at the start of Rajiv Gandhi Indoor Stadium, Kochi Corporation Stadium, Kollam 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 2012, News articles 42

43 INDUSTRIAL INFRASTRUCTURE (1/3) The state has 32 SEZs with formal approvals and 25 notified SEZs. A cyber-park spread over a 68 acre campus is being developed in Kozhikode. Infrastructure Project description Technopark Infopark Special Economic Zones 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 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-in-progress) 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. 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. 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: 43

44 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 Beedi 44

45 INDUSTRIAL INFRASTRUCTURE INDUSTRIAL CLUSTERS (3/3) District Kannur Alappuzha Idukki Thiruvananthapuram Handlooms, power looms, beedi Coir products Agriculture and forest based Handlooms, IT Thrissur Power looms, handlooms, textile, timber, tile, canning Palakkad Power looms, sericulture Kollam Industries Minerals and mining Kozhikode Rubber Wayanad Minerals and mining Kasargod Minerals and mining Kottayam Rubber, food products, engineering Ernakulam IT 45

46 SMART CITIES As of June 2015, seven cities of the state have been earmarked to be developed as a smart cities. In 2015, along with the smart cities, 18 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. Under this scheme, the central government has approved an investment of US$ 8.3 billion for the first phase. Thrissur Proposed Smart Cities in Kerala Ernakulam Cities Population Area (Sq Km) Literacy Rate Cochin 2,117, % Ernakulam 3,282, % Kollam 2,635, % Kottayam 1,974, % Thiruvananthapuram 3,301, % Thrissur 3,121, % Tiruvalla 223, % Kochin Tiruvalla Kollam Thiruvananthapuram Source: TechSci Research 46

47 KEY INDUSTRIES Kerala s strategic location on the trans-national trade corridor, rich natural resources, and simple and transparent procedures are favourably suited for investments in key sectors such as tourism, IT/ITeS, manufacturing and 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 and Commerce, and the Small Industries Development Corporation are jointly responsible for the development of industrial infrastructure in the state. In terms of industrial growth, the state s average growth from to was 14 per cent at current prices SME s generated more than US$16 million worth of orders from B2B meet held in February 2015 in Kochi. Key industries in Kerala Forming industrial clusters and developing infrastructure (such as rubber parks, electronic hardware park, coconut industrial park, organic industrial park and food processing parks) have been integral to the state s strategies to attract investments in various industries. The total number of functional micro, small and medium enterprises (both registered and unregistered) in Kerala stood at 159,450 and 2,192,969, respectively, as of March These units employed a total of 5,274,606 people (660,123 employed under registered sector and 4,614,483 employed under unregistered sector). The total number of SSIs/MSMEs registered in Kerala by the end of March 2014 stood at 234,251 against 219,444 in the previous year, indicating a growth of about 6.3 per cent. 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 Source: Economic Review of Kerala, , News articles 47

48 KEY INDUSTRY COIR AND COIR PRODUCTS (1/2) As of , Kerala accounts for approximately 51.7 per cent (in terms of value) and about 84.8 per cent (in terms of volume) of total coir and coir products produced in India. The coir industry provides employment to around 375,000 people. The state has three coir parks: two in Alappuzha and one in Perumon (Kollam). 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. As per Budget , an amount of US$ 19.5 million has been allocated for the development of the coir sector. In the budget, Government has allocated a budget of US$ 0.16 million to provide scholarships to the children of coir workers. Source: Economic Review of Kerala, , Government of Kerala, Coir Board, News articles 48

49 KEY INDUSTRY COIR AND COIR PRODUCTS (2/2) Export 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 during compared with the previous year. In value terms, export of coir products from Kerala grew from US$ million in to US$ million in In , in terms of quantity, out of the total 626,666 tonnes of coir and coir products exported from India, Kerala accounted for 86,920 tonnes. In percentage terms, the state s share of total coir exports stood at per cent in quantity terms and 48 per cent in value terms during 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. Exports of coir industry of India ( 000 metric tonnes) Source: Economic Review of Kerala, 2012, Coir Board, Government of India, Business Line Coir pith and coir fibre are the major contributors in the export of coir products with more than 80 per cent share. China is the major customer base for India s coir products with 28.6 per cent share in value and 39 per cent share in volume. 49

50 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. Around 94.0 per cent of the total number of looms are under the cooperative sector (consists of factory type and cottage type societies), the remaining being under industrial entrepreneurs. During , the state government approved an investment of US$ 2.63 million to the handloom sector, whereas the central government and the financial institution group (NCDC, NABARD & HUDCO) approved investments of US$ 0.07 million and US$ 0.2 million, respectively for the same period of time. At the end of March 2014, Kerala accounted for 705 registered Primary Handloom Weavers Co-operative Societies (PHWCS), consisting of 171 factory type societies and 534 cottage type societies. Kerala s four integrated power loom co-operative societies in Calicut, Wayanad, Neyyattinkara and Kottayam have been expanded by providing budgetary support. The Calicut Integrated Powerloom Co-operative Society Ltd has been converted into a textile park comprising all the segments of a composite mill (weaving, processing and garment making). At the society, semi-automatic power looms, automatic looms and highly sophisticated machines are operational. The total value of handloom production in the state was US$ million in The total number of weavers employed in the state was 21,230 in The number of women employed has also decreased from 21,434 in to 13,061 in Total employment generated decreased from million man days in to 9.2 million man days in Source: Economic Review of Kerala, Kerala State Handloom Development Corporation Ltd 50

51 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. The annual plan outlay for information technology during is 34.4 per cent higher than that for According to Annual Plan, an investment of US$ 66,000 was announced for application of information technology. Kerala possesses a cost-effective and highly skilled human resource base with the lowest attrition rate (less than 5 per cent). 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). In , the state s software exports from registered units through Software Technology Parks of India (STPI) were valued at US$ million that reached US$ million by As of , Kerala has seven operational IT/ITeS SEZs. Out of the seven IT/ITeS SEZs, three are operational and located at Kochi (one) and Thiruvananthapuram (two). 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 Source: Kerala IT Policy 2012, Economic Review of Kerala and State Annual Plan News articles 51

52 KEY INDUSTRIES IT (2/3) IT exports from Kerala increased at a CAGR of 11.2 per cent between and Operational costs in the state are among the lowest in India (40 per cent lower as compared to other major IT locations in India). Also, rental/real estate costs are lower than major IT cities in the country. Exports from IT industry (US$ million) CAGR 11.2% State government is planning to provide job opportunities to 0.5 million people in IT sector by Kerala has a strong e-governance infrastructure and is a leading state in e-governance Around 11 per cent of the national IT pool is contributed by skilled human resources from Kerala. Source: Kerala IT Policy 2012, Economic survey of Kerala, , News articles Software Technology Parks of India Kochi Info Park registered IT exports worth US$ 391 million in that reached US$ million in

53 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 300,000 IT consultants in 46 countries and generated revenue of US$ 12.2 billion in FY 15. 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 160,000 people. The company generated US$ 7.8 billion in revenue in FY 15. 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 RR Donnelley India Outsource Pvt Ltd 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 world-class delivery centres in the US, the UK, India, Singapore and Philippines. The company has an office at Technopark, Thiruvananthapuram. In 2014, it generated US$ 500 million in revenue. 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$ 11.6 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. Source: Company website and annual report 53

54 KEY INDUSTRIES ELECTRONICS (1/2) The self contained Electronics Technology Park at Technopark, Thiruvananthapuram, has been instrumental in attracting global electronics manufacturers. In , KSIDC developed Electronic Hardware Park which is a manufacturing and Research & Development (R&D) facility based in Kochi. The state has ample availability of skilled and semi-skilled workers for the electronics industry. As per the Budget , the tax rate on government notified electronic goods and systems which is meant for defence purposes has been reduced to 5%. 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. Key players 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. In November 2012, Hindustan Aeronautics Limited has set up phase-i of an electronics factory at the cost of US$ 12.1 million at Kasaragod to manufacture advanced avionics for aircraft and helicopters. This factory enhanced the growth of subsidiary industries, which in turn generating secondary employment opportunities and augment skill-sets in this area. Traco Cable Company Limited Transformers and Electricals Kerala Ltd (TELK) Kerala State Electronics Development Corporation Ltd (Keltron) Source: Economic Review of Kerala, Government of Kerala KSDIC: Kerala State Industrial Development Corporation News Article 54

55 KEY INDUSTRIES ELECTRONICS (2/2) Traco Cable Co Ltd Transformers and Electricals Kerala Ltd (TELK) 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. 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. In TELK won the Kerala Safety Award for very large factories in the engineering category. 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 55

56 KEY INDUSTRIES TOURISM (1/2) The tourism sector of Kerala is a significant contributor to the state economy. As of , revenue from the tourism sector accounted for 9.84 per cent share of the state s GDP. Total revenue (including direct and indirect) from tourism surged by about per cent to US$ 4,106.5 million in In 2015, Kerala was awarded as the winner of PATA awards by Macau Government Tourism Office (MGTO). Kerala Tourism bagged four of the top honours at the Pacific Asia Travel Association (PATA) Awards 2011, announced in Bangkok, for outstanding achievement in tourism. In 2013, a survey conducted by BBC World News has rated Kerala as the most popular tourist in India spot among foreign travellers. Kerala Tourism has won many national and international awards. The state has been voted the Best Asian Holiday Destination 2010 by SmartTravelAsia.com, ahead of other destinations such as Bali, Phuket and Maldives. 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. Kerala accounted for 4.8 per cent of total foreign tourist visitors in the country in Source: Economic Review of Kerala, , News articles 56

57 KEY INDUSTRIES TOURISM (2/2) Arrivals of domestic and foreign tourists in Kerala increased at a CAGR of 8.0 per cent and 10.4 per cent, respectively, over Major initiatives of Kerala Tourism - 12th Domestic tourist arrivals in Kerala (in million) FYP: An investment of US$ 0.67 million was announced for Kerala waste free destination scheme. Ab 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 Foreign tourist arrivals in Kerala (in million) Source: Economic Survey The Hindu, Ministry of Tourism, Government of India 57

58 KEY INDUSTRIES RUBBER INDUSTRY Kerala is the leader in rubber production in the country. State accounted for about 69% share in the total rubber production and also holds a cultivation area of 5.45 lakh hectares. Natural rubber production in Kerala was thousand MT during , a 7.6 per cent increase over The production witnessed a decline during and stood at 655 thousand metric tons. In the budget, state government of Kerala announced that rubber wood would be totally exempted from tax. KINFRA, through a JV with the Rubber Board, has developed India s first rubber park in Kochi. Kerala also has a major rubber cluster in Kottayam. Exports of natural rubber from India (000 tonnes) Consumption of natural rubber in India (000 tonnes) As per Budget , Government announced plans to invest US$ 3.3 million for the expansion of the rubber industry in Kerala. The government is also offering an exemption on taxes, which is applicable on the purchase of rubber in the state Source: Economic Review of Kerala, , Rubber Board, Ministry of Commerce and Industry, Government of India Kerala State Co-operative Rubber Marketing Federation, Kerala farmer Online JV = Joint Venture, MT = Metric Tonnes 58

59 KEY INDUSTRIES SPICES (1/2) Kerala can be termed as the land of spices, considering the large variety of spices grown in the state. Kerala is the largest producer of pepper in India and accounts for about 76 per cent share in India s production. In , the state witnessed pepper production of 29,408 tonnes whereas the area under pepper cultivation was recorded as 84,065 hectares. As per Budget , an investment of US$ 3.3 million is planned by the government to boost the spices cultivation in the state. Exports of spices from Kerala (through Cochin and Thiruvananthapuram ports) in US$ million CAGR 7.78% Global pepper production has dropped drastically, which led to increase in pepper prices Spices exports from Kerala (through Cochin and Thiruvananthapuram ports) surged at a CAGR of 7.78 per cent between and Apart from pepper, other spices produced in the state include ginger, cardamom, nutmeg, tamarind, etc In line with the global trend, the price surge has been sharp in India considering the substantial domestic consumption compared with other pepper producing countries Source: Economic Review of Kerala, , News articles, Government of Kerala, Horticulture

60 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 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. Volume of exports through Cochin Port (tons) Spices Ginger 2, , ,607.7 Chilies 4, ,565.4 Nutmeg 1, ,997.9 Pepper 15, ,203.6 Turmeric 3, ,444.6 Cardamom Source: Economic Review of Kerala, , News Articles 60

61 KEY INDUSTRIES KHADI INDUSTRY Khadi and village industries have been an integral part of the traditions of Kerala. Total sales of khadi products from sales outlets of Kerala khadi & village industries (US$ million) There is immense scope for investments in the field of khadi, due to higher demand for khadi products such as khadi silk sarees (Payyannur pattu and Chithali silk), cotton sarees, Kuppadam dhothis, bedspreads and towels. The Kerala Khadi and Village Industries Board is the statutory body in the state Khadi goods worth US$ 7.5 million, were sold through 216 sales outlets of Kerala Khadi & Village Industries during As per the budget, tax exemption approved to khadi products would be extended to units approved by Khadi and Village Industries Commission. As of , under Income Support Scheme, an investment of US$ 0.21 million has been approved to 6,274 khadi spinners and 4,014 weavers. This investment is 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 Source: Economic Review of Kerala, , Finance Department Government of Kerala During , the state witnessed khadi production worth US$ 47.6 million, whereas sales stood at US$ 57.2 million. The industry is generating employment for 236,389 people. Description Budget Expansion and Modernisation of Silver Project at Ettukudukka US$ million Computerisation of Khadi Board US$ million Establishment and Strengthening of Departmental Village Industries Units US$ million 61

62 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. 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. Total sales of Oushadhi, the biggest Ayurvedic drug manufacturing unit in India, recorded a CAGR of 16.9 per cent between and The company recorded sales of US$ million over compared to US$ 12.2 million in the previous year. In 2014, the company announced plans to set up a medicine manufacturing facility in Kerala with an investment of US$ 3.3 million. This expansion is expected to increase the production capability of the company by threefold. As of 2015, the state has submitted a project proposal worth US$ 16.5 million to the government for the establishment of the State Medicinal Plant Board. Source: Economic Review of Kerala, , News articles 62

63 KEY INDUSTRIES FISHERY The state has a long coastline of over 580 km and innumerable water bodies, generating a huge potential for inland and marine fishing, and providing it a prominent position in fish cultivation. As per Census 2011, the state has a fisherfolk population of nearly 1 million, of which 0.8 million is in coastal areas and 0.2 million in inland areas. They contribute about 9 per cent to the GSDP from the agriculture sector. Among maritime states in India, Kerala ranks second in marine fish production. There were 21,781 fishing crafts in the state as per In 2015, an investment of US$ 0.3 million has been sanctioned by the Minister for Fisheries and Ports. The purpose behind this investment is the development of Thottappally fishing harbour An investment of US$ 1.6 million has been sanctioned for the development of a new fishing harbour in the state in Total fish production in Kerala (in million tonnes) Total fish production in the state stood at million tonnes in As of 2015, state has ten major fishing harbours. Moreover, the government is planning to sanction 13 new proposals The production of marine fish in the state during was million tonnes, whereas inland fish production was recorded as million tonnes during the same period Source: Economic Review of Kerala, Department of Animal Husbandry, Dairying and Fisheries, News articles 63

64 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. 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. To promote food processing, agriculture and allied sectors, Kerala Agri Food Pro Meet 2013, which was a technology meet, was held in Kochi. FPI = Food Processing Industry 64

65 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. SWM structure in Kerala State Board Chief Secretary District Boards District Collector Industrial Area Board An officer not below the rank of District Collector 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. Source: KSIDC 65

66 KEY INVESTMENT PROMOTION OFFICES (1/2) Agency Kerala Industrial Infrastructure Development Corporation (KINFRA) KITCO Limited (formerly, Kerala Industrial and Technical Consultancy Organisation Limited) Directorate of Industries and Commerce Description The aim of the organisation is to speed up industrial growth in Kerala through infrastructure support. 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. 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. 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. 66

67 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: Kerala State Industrial Development Corporation (KSIDC): the singlewindow clearance and monitoring agency Formed in 1961 with an objective of promoting, stimulating, financing and facilitating the development of large- and medium-scale industries in Kerala. 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. 67

68 CONTACT LIST (1/2) Agency Contact information Directorate of Industries and Commerce Vikas Bhavan P O Thiruvananthapuram Kerala Phone: Fax: tvm_dindust@sancharnet.in Kerala State Industrial Development Corporation Limited (KSIDC) T C XI/266, Keston Road, Kowdiar, Thiruvananthapuram Phone: Fax: ksidc@vsnl.com KITCO Limited P B No 4407, Puthiya Road, NH Bypass, Vennala, Cochin Phone: / Fax: mail@kitco.in 68

69 CONTACT LIST (2/2) Agency Contact information Kerala Industrial Infrastructure Development Corporation (KINFRA) KINFRA HOUSE, TC 31/2312 Sasthamangalam, Thiruvananthapuram Phone: Fax: kinfra@vsnl.com Kerala Small Industries Development Corporation Housing Board Building, 6th floor, Santhi Nagar P B No 50 Thiruvananthapuram Phone: , , , Fax: sidcoho@yahoo.com 69

70 KEY APPROVALS REQUIRED (1/2) Approvals and clearances required Departments to be consulted Incorporation of the company Registrar of Companies Registration, Industrial Entrepreneurs Memorandum, Industrial Licences District Industries Centre for small scale industries and KSIDC for large and medium industries Allotment of land State Department of Industries/KSIDC/KINFRA Permission for land use State Department of Industries, Kerala Town and Country Planning Department Environment approval for the site Kerala State Pollution Control Board and Central Ministry of Environment and Forests No-objection certificate and consent under Water and Pollution Control Act Kerala State Pollution Control Board Approval of construction activity and building plan Kerala Town and Country Planning Department Sanction of power Kerala State Electricity Board (KSEB) Registration under State s Sales Tax Act and Central and State Excise Act Sales Tax Department, Central and State Excise Departments Mechanism and estimated time 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. 70

71 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) 15 Obtain a Tax Account Number (TAN) for income taxes deducted at the source from an authorized franchise or agent appointed 14 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 71

72 COST OF DOING BUSINESS IN Cost parameter Industrial land (per sq m) Five-star hotel Office space rent (per sq ft) Residential space rent (2,000 sq ft house) Power (per kwh) Labour (minimum wages per day) Water (1,000 litres) Cost estimate Source US$ (Cochin) Industry sources US$ per room per night Leading hotels in the state US$ per month Industry sources US$ per month Industry sources Commercial: 16 cents (US) Industrial: 9 cents (US) DCH Databook October 2013 US$ Ministry of Labour and Employment, Government of India 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 72

73 STATE ACTS & POLICIES (1/4) Kerala State Training Policy Objectives Prime purpose of this policy is to expose civil services in the state and enhancement of knowledge of individual and organisation to ensure their better performance Read more Kerala alcohol policy Objectives Purpose of the policy is to legalise the production, transportation and consumption value of liquor in the state. The policy also covers transparent licensing system for intoxicating products. Read more Kerala Technology Startup Policy 2014 Objectives 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 73

74 STATE ACTS & POLICIES (2/4) The Micro, Small And Medium Enterprises Development Act, 2006 Objectives 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, Read more small and medium enterprises. Kerala Tourism Policy 2012 Objectives 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 Objective To harness green and clean natural resources in the state for environmental benefits and energy security. Read more Kerala IT Policy 2012 Objective To plan, develop and market the state as the most preferred IT/ITeS investment/business destination in India. Read more 74

75 STATE ACTS & POLICIES (3/4) Sports Policy 2012 Objectives To provide equal opportunities to all citizens of the state for participation in sports. To promote excellence in sport, with the athlete as the central character. To develop, maintain and optimally utilise high quality sports infrastructure. To encourage, train and support talented sports persons in large numbers. Read more Industrial & Commercial Policy 2011 (Draft) Objectives 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 Solar Energy Policy 2013 Objectives 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 usage. Read more 75

76 STATE ACTS & POLICIES (4/4) SEZ Policy 2008 Objective To make Kerala s economy more export-oriented by granting various exemptions and concessions. Read more Kerala Biotechnology Policy 2003 Objective 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 Health Policy 2013 (Draft) Objective The policy focusses on positioning good health as the product of the development agenda including water supply, nutrition, sanitation, prevention of ecological degradation, respect for citizen rights and gender sensitivity. Read more 76

77 SUMMITS/CONFERENCES FOR (1/2) Summit / Conference Venue of Summit / Conference Date Crafts N' Weaves - Sankalp Lifestyle Exhibition 2015 Palakkad 8th August 2015 Trivandrum 2nd August, 2015 Trivandrum 2nd August, 2015 Alappuzha 2nd August, 2015 Alappuzha 9th August 2015 Kochi 10th August 2015 Alappuzha 23rd August 2015 Calicut 23rd August 2015 Ernakulam 23rd August 2015 Ernakulam 30th August 2015 Ernakulam 1st September 2015 IRAJ-International Conference on Advances in Science Engineering And Technology (ICASET) IFERP-International Conference on Current Advances in Electronics, Electrical and Computer Science(ICEECS-15) IFERP-International Conference on Engineering and Technology(ICET-15) NIER-International Conference on Emerging Trends in Engineering and Technology(ICET-15) International Symposium on Intelligent Systems Technologies and Applications (ISTA 15) IFERP-International Conference on Current Research in Engineering and Technology(ICET-15) NIER-International Conference on Emerging Trends in Engineering and Technology(ICET-15) NIER- International Conference on Current Research in Engineering and Technology(ICET-15) International Conference on Current Advances in Electronics, Electrical and Computer Science(ICEECS-15) Kerala Homestay & Rural Tourism Meet 2015 Source: India conference alerts 77

78 SUMMITS/CONFERENCES FOR (2/2) Venue of Summit / Conference/Exhibition Date Cochin 6th September 2015 Alappuzha 6th September 2015 Munnar 13th September 2015 Trivandrum 13th September 2015 Alappuzha 20th September 2015 Trivandrum 20th September 2015 Chittur 27th September 2015 Calicut 27th September 2015 BIOFACH India 2015 Ernakulam 5th November 2015 Asia Pacific Youth Forum 15 Calicut 21st November 2015 International Conference on Mathematics (ICM 2015) Trivandrum 26th November 2015 India International Travel Mart Ernakulam 14th January 2016 Summit / Conference IRAJ-International Academic Conference on Electrical & Electronics Engineering (IACEEE) IFERP-International Conference on Engineering and Technology(ICET-15) IFERP-International Conference on Emerging Trends in Engineering and Technology(ICET-15) IFERP-International Conference on Current Advances in Electronics, Electrical and Computer Science(ICEECS-15) NIER- International Conference on Emerging Trends in Engineering and Technology(ICET-15) ITAR- International Conference on Recent advances in Electronics, Computer Science and Information Technology(ICECSIT-15) ITAR-International Conference on Current Advances in Electronics, Electrical and Computer Science(ICEECS-15) ISER- International Conference on Emerging Trends in Electronics, Electrical and Computer Science Source: India conference alerts 78

79 ANNEXURE Average exchange rates Year INR equivalent of one US$ Q Source: Reserve Bank of India 79

80 DISCLAIMER India Brand Equity Foundation (IBEF) engaged TechSci to prepare this presentation and the same has been prepared by TechSci in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of TechSci and IBEF s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. TechSci and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither TechSci nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation. 80