51
For updated information, please visit www.ibef.org May 2018 KERALA GOD’S OWN COUNTRY BEKAL FORT IN KASARGOD, KERALA

KERALA - IBEF

  • Upload
    others

  • View
    12

  • Download
    0

Embed Size (px)

Citation preview

Page 1: KERALA - IBEF

For updated information, please visit www.ibef.org May 2018

KERALA GOD’S OWN COUNTRY

BEKAL FORT IN KASARGOD, KERALA

Page 2: KERALA - IBEF

Table of Content

Executive Summary……………..……….….3

Introduction…..…………………..…………..4

Economic Snapshot…….……………….…..9

Physical Infrastructure………………….….14

Social Infrastructure……….…………..…...22

Infrastructure Infrastructure .......................25

Key Sectors………….…….…..…….......…31

Key Procedures and Policies……..……….38

Annexure…….………........................……49

Page 3: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 3

EXECUTIVE SUMMARY

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.

Cultural diversity and

well developed tourism

sector

As of census 2011, Kerala has the highest literacy rate of 94.0 per cent and sex ratio of 1,084 women for

1,000 men, in India. Male literacy rate in the state stands at 96.10 per cent, among all states.

Highest literacy and sex

ratio

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.

Ranks second in

Investment Climate

Index

Kerala has the 1st international transhipment terminal in India, having a design capacity of around 4 million

TEUs & providing better connectivity between Kerala & other ports in India.

First international

container transhipment

terminal

Cochin Port handled all time high monthly cargo of 2.825 million tonnes in January 2018. Total traffic handled

during 2017-18* was 24.210 million tonnes.

Cargo Traffic in Cochin

Port

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 world-

class IT campus in Thiruvananthapuram.

Presence of world class

technology park

Source: Economic Review of Kerala 2014-15 , Kerala IT Policy, TEU’s = Twenty-foot Equivalent Unit Rubber Board, Ministry of Commerce and Industry, Cochin Port Trust, New Indian

Express, State budget 2018-19, Migration And Development Brief 27 by World Bank, SLBC Kerala.

Note: * - Up tp January 2018

Page 4: KERALA - IBEF

KERALA

INTRODUCTION

Page 5: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 5

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.

KERALA 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.

Source: Maps of India

Parameters Kerala

Capital Thiruvananthapuram

Geographical area (sq km) 38,863

Administrative districts (No) 14

Population density (persons per sq km) 860

Total population (million) 33.41

Male population (million) 16.02

Female population (million) 17.38

Sex ratio (females per 1,000 males) 1,084

Literacy rate (%) 94.6

Source: Kerala at a glance, Economic Review of Kerala,2014-15 , Government of Kerala website, Census 2011, Central Statistics Office

Page 6: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 6

Advantage

Kerala

ADVANTAGE: KERALA

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 5.11 per cent during

2017 over 2016.

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.

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.

High economic growth

Kerala’s gross state domestic product (GSDP) surged at

a compound annual growth rate (CAGR) of 11.13 per

cent between 2011-12 and 2016-17.

Kerala is the leader in rubber production; high demand

of rubber has opened up immense opportunities for the

state in the rubber industry.

Source: Economic Review of Kerala 2014-15, Tourism Vision 2030, kerala Tourism

Page 7: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 7

KERALA VISION 2030

Vision

2030

Energy

Education

Health

Transport

Labour

Industry

Forestry Agriculture &

livestock

Green, sustainable and safe

transport.

Provide high quality education at

affordable rates.

Create a global brand name in

education and develop into a

knowledge hub by 2030.

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.

Increase health expenditure to

GSDP ratio from 0.6 per cent in

2012 to 4-5 per cent by 2027−31.

Set up three medical cities by 2030.

Provide health insurance cover to

all.

Increase the share of forestry in

GSDP to 0.5 per cent.

Increase the productivity of forests

through improved management of

resources.

Growth oriented labour welfare policy.

Connecting labour supply with

demand.

Increasing employment opportunities.

Increase the share of manufacturing

to 10 per cent of the GSDP by

2030.

Sustained increase in employment

in manufacturing.

Affordable and clean power to all.

Exploit the full potential of hydro-electric

generation.

100 per cent electrified households with

24*7 availability.

Source: Government of Kerala

Page 8: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 8

KERALA IN FIGURES

Parameter Kerala India

GSDP as a percentage of all

states’ GSDP 4.05 100.0

GSDP growth rate (%) 10.59 10.8

Per capita GSDP (US$) 1,181.15 1,750.29

Kerala’s Contribution to Indian Economy (2016-17)

Parameter Kerala India

Installed power capacity (MW) 5,074.72 343,788.39

Wireless subscribers (No) 42,003,337 1,183,408,611

Internet subscribers (No) 18,930,000 445,960,000

National highway length (km) 1,782 115,435

Major and minor ports (No) 1+17 13+187

Airports (No) 3 125

Physical Infrastructure in Kerala

Parameter Kerala India

Literacy rate (%) 94.6 73.0

Birth rate (per 1,000

population) 14.3 20.4

Social Indicators

Parameter Kerala India

PPP projects operational (No) 19 715

Exporting SEZs (No) 19 222

Industrial Infrastructure

Parameter Kerala India

FDI equity inflows (US$ billion) 1.93 368.053

Investments (as of December 2017)

PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System

Page 9: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 9

ECONOMIC SNAPSHOT – GSDP

GSDP of Kerala at current prices (US$ billion)

At current prices, Kerala’s GSDP was about Rs 6.17 trillion

(US$ 37.23 billion) in 2016-17.

The state’s GSDP recorded a CAGR of 11.13 per cent

between 2011-12 and 2016-17.

Growth was mainly driven by secondary and tertiary sectors.

Per Capita GSDP of Kerala at current prices (US$)

The state’s per capita GSDP^ stood at Rs 72,535 (US$ 1,081)

during 2016-17 as compared to Rs 45,538 (US$ 971) during

2011-12.

Per capita GSDP increased at a CAGR of 10.69 per cent

between 2011-12 and. 2016-17

Source: Directorate of Economics and Statistics of Kerala, Per Capita GSDP^ - calculated using GSDP million US$/Population in million

30

.54

28

.89

29

.49

32

.47

34

.52

37

.23

3.6

4

4.1

2

4.6

5

5.1

3

5.5

8

6.1

7

0

1

2

3

4

5

6

7

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7US$ billion Rs trillion

CAGR 11.13%

97

1

90

7

91

4

99

4 1,0

44

1,0

81

45

,53

8

49

,25

4

55

,09

8

59

,89

4

68

,35

9

72

,53

5

0

10000

20000

30000

40000

50000

60000

70000

80000

800

850

900

950

1,000

1,050

1,100

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

US$ Rs

CAGR (In Rs) 10.69%

Page 10: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 10

ECONOMIC SNAPSHOT – NSDP

NSDP of Kerala at current prices (US$ billion)

At current prices, Kerala’s NSDP was about Rs 5.58 trillion

(US$ 83.24 billion) in 2016-17.

NSDP of the state grew at a CAGR of 11.23 per cent between

2011-12 and 2016-17.

NSDP per capita of Kerala at current prices (US$)

Kerala’s per capita NSDP was Rs 162,717.91 (US$ 2,425.37)

in 2016-17 compared to Rs 2,041.9 (US$ 2041.9) during 2011-

12.

Per capita NSDP of the state grew a CAGR of 10.69 per cent

between 2011-12 and 2016-17.

Source: “Advanced Estimates” provided by Directorate of Economics and Statistics of Kerala,

68

.41

68

.21

68

.97

75

.33

76

.98

83

.24

3.2

8

3.7

1

4.1

7

4.6

1

5.0

4

5.5

8

0

1

2

3

4

5

6

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7US$ billion Rs trillion

CAGR (In Rs) 11.23%

20

42

20

26

20

39

22

16

22

54

24

25

97

91

2

11

03

14

12

33

88

13

55

37

14

75

52

16

27

18

0

20,000

40,000

60,000

80,000

1,00,000

1,20,000

1,40,000

1,60,000

1,80,000

1800

1900

2000

2100

2200

2300

2400

2500

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

US$ Rs

CAGR (In Rs) 10.69%

Page 11: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 11

ECONOMIC SNAPSHOT – PERCENTAGE

DISTRIBUTION OF GSDP

In 2016-17, the tertiary sector contributed 56.13 per cent to the

state’s GSDP at current prices, followed by the secondary sector

contributing 20.85 per cent.

The tertiary sector grew at a CAGR of 12.38 per cent between 2011-

12 and 2016-17. Growth was driven by storage, transport, financial

and real estate segments.

The secondary sector grew at an average rate of 6.94 per cent,

between 2011-12 and 2016-17. Growth was led by manufacturing,

construction, electricity, gas & water supply.

The primary sector expanded at an average rate of 7.46 per cent

between 2011-12 and 2016-17, mainly supported by growth across

agriculture and mining & quarrying segments.

Visakhapatnam port traffic (million tonnes) GSDP composition by sector

14.04% 11.87%

25.26%

20.85%

53.08% 56.13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011-12 2016-17

Primary Sector Secondary Sector Tertiary sector

7.46%

12.38%

6.94%

CAGR

Source: Directorate of Economics and Statistics of Kerala Economic Survey

Page 12: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 12

ECONOMIC SNAPSHOT – EXPORTS

The external trade in Kerala is mainly operational through the Cochin

Port.

During 2017-18*, 34.90 MT of basmati rice was exported from the

state. Total value of the export was US$ 36.17 thousand. Total value

of non basmati rice exported during the same period was US$ 35.65

thousand

Tea exports from the state during 2016-17 stood at Rs 409.81 crore

(US$ 61.08 million)

Export of gold jewellery and other precious metals stood at Rs

6,350.86 crore (US$946.62 million)

Source: Office of the Development Commissioner, CSEZ - Cochin Special Economic Zone (1)2015-16, APEDA, Kerala Economic Review 2016

Sectors (US$ million)

Computer software 5.21

Electronic hardware

0.14

Engineering goods 2.04

Pharmaceuticals / Chemicals 4.58

Plastic, Rubber and Synthetic 1.64

Miscellaneous 86.83

Food and Agro products 293.17

Exports break-up, Cochin Special Economic Zone Port (2016-

17)

Note: * - Upto February 2018

Page 13: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 13

ECONOMIC SNAPSHOT – FDI INFLOWS &

INVESTMENTS

According to DIPP, during April 2000 to December 2017, FDI

inflows into the state (including Lakshadweep) reached US$ 1.93

billion.

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.

In January 2018, the Chief Minister of Kerala proposed a

chamber of commerce using which expatriate businessmen will

be able to invest funds into profitable and job-generating

mercantile ventures in Kerala.

In 2018^, one investment intention under IEMs worth Rs 23 crore

(US$ 3.57 million) have been proposed in the state.

Visakhapatnam port traffic (million tonnes) FDI equity inflows, 2008-09 to 2016-17 (US$ million)

82

12

8

37

47

1

72 70

23

0

90

45

4

17

1

0

100

200

300

400

500

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

8*

Note: * - April – December 2017, ^ - Up to March

Source: DIPP - Department of Industrial Policy & Promotion, 1Including Lakshadweep, Government of Kerala,

Page 14: KERALA - IBEF

KERALA

PHYSICAL

INFRASTRUCTURE

Page 15: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 15

PHYSICAL INFRASTRUCTURE – ROADS

Source: Kerala State Industrial Development Corporation Ltd.; Ministry of Road Transport & Highways, Government of Kerala, State budget 2018-19, NHAI, omms.nic.in

Road development activities in the state are undertaken under three broad categories of roads and bridges, road transport and other transport

services.

To improve efficiency of transportation to Kannur International Airport, the state government has decided to convert six roads into four-lane

highways. The preparation of a Detailed Project Report (DPR) is currently underway.

As of June 2018, the state has 432 eligible habitation out of which 404 are cleared and 386 are further connected under PMGSY.

In the Budget 2018-19, a new scheme is being formulated to renovate 155 dilapidated bridges and culverts within a period of 5 years. Another

mega scheme is the construction of 42 new rail over bridges beginning in 2018-19.

18.51

29.12 24.86

34.75

19.47

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

2013-14 2014-15 2015-16 2016-17 2017-18^

Expenditure on road works under PMGSY in Kerala

(US$ million)

Road type Road length (km)

National highways 1,782

State highways 4,341.65

Major district roads 27,470.45

Roads in Kerala

Note: PMGSY – Pradhan Mantri Gram Sadak Yojana

Page 16: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 16

PHYSICAL INFRASTRUCTURE – RAILWAYS

Source: Economic Review of Kerala, 2014-15, Kerala State Industrial Development Corporation Ltd, Government of Kerala, State Budget

Source: Maps of India

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.

Railway divisions in Thiruvananthapuram, Palakkad and Madurai

jointly carry out railway operations in Kerala.

As per Budget 2018-19, approval for 42 new ROB has been

obtained from Railway Ministry. Construction will begin from 2018-

19.

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.

Page 17: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 17

PHYSICAL INFRASTRUCTURE – AIRPORTS

Source: Airports Authority of India, Kerala State Industrial Development Corporation Ltd.

Kerala has 3 airports handling domestic & international flights, located at Thiruvananthapuram, Kochi & Kozhikode.

An international airport at Kannur is upcoming and is expected to be operational by September 2018. This airport will be the 4th to have a runway

of 4,000 metres. Kannur is airport at the final stage of completion and inauguration to be announced soon.

Ports 2015-16 2016-17 2017-18 April 2018

Cochin 7,749,901 8,955,441 10,172,839 921,760

Thiruvananthapuram 3,470,788 3,881,509 4,393,469 930,310

Passenger handled at the airport

Ports 2015-16 2016-17 2017-18 April 2018

Cochin 56,180 61,688 68,772 5,740

Thiruvananthapuram 26,001 29,117 33,738 2,790

Aircraft movement at the airport

Ports 2015-16 2016-17 2017-18 April 2018

Cochin 79,233 81,485 76,274 6,013

Thiruvananthapuram 35,570 28,450 28,715 2,325

Freight handled at the airport (MT)

Page 18: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 18

PHYSICAL INFRASTRUCTURE – PORTS

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.

The cargo traffic handled by Cochin port was 5.12 million tonnes

during 2018 – 19*

Source: Cochin Port Trust, News articles, Economic Survey 2014-15, India Port Association

Cochin port trafic (million tonnes)

15

.80

15

.20

17

.40

17

.90

20

.10

19

.80

20

.90

21

.60

22

.09

25

.00

29

.14

5.1

2

0.05.0

10.015.020.025.030.035.0

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

8

201

8-1

9*

Note: * - Up to May 2018

Major ports Cochin

Intermediate ports

Neendakara

Alappuzha

Kozhikode

Minor ports

Vizhinjam

Valiyathura

Vadakara

Ponnani

Thankasserry

Kayamkulam

Manakkodam

Munambam

Beypore

Thalasserry

Manjeswaram

Neeleswaram

Kannur

Azhikkal

Kasaragode

Existing Ports Traffic handled at Cochin Port

Page 19: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 19

PHYSICAL INFRASTRUCTURE – POWER

Kerala is among the prominent Indian states to have achieved 100

per cent rural electrification.

As of April 2018, the state had a total installed power generation

capacity of 5,074.72 MW, of which 2,192.48 MW was accounted for

by state utilities, 1,914.80 MW by central utilities and 967.44 MW

under private sector.

Thermal power contributed 2,451.76 MW to total installed power

generation capacity. Hydropower (1,881.50 MW), nuclear power

(362.00 MW), and renewable power (379.46 MW) are the other main

energy sources.

Kerala’s state utilities, which account for 41.96 per cent of overall

capacity, generate 85.82 per cent of the energy through

hydroelectric power plants, 7.30 per cent through thermal and 6.89

per cent renewable power generation plants.

Installed power capacity (MW)

3,5

14

.00

3,5

53

.70

3,7

18

.80

3,8

27

.70

3,8

56

.40

3,8

92

.00

4,1

06

.00

4,1

72

.00

4,9

98

.94

5,0

74

.72

5,0

74

.72

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

8

201

8-1

9*

Source: State Budget 2016-17, Central Electricity Authority

Page 20: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 20

PHYSICAL INFRASTRUCTURE – TELECOM

As of March 2018, Kerala had an overall tele-density of 121.61 per cent as against an all-India average of 90.61 per cent.

According to the Telecom Regulatory Authority of India (TRAI), as of March 2018, Kerala had 42 million wireless subscribers and 1.97 million

wire-line subscribers.

By the end of March 2018, 9,065,245 subscribers had submitted requests for mobile number portability in Kerala.

Source: Telecom Regulatory Authority of India, 2As of March 2016, Ministry Of Communications And Information Technology, GP - Gram Panchayat

Wireless subscribers 42,003,227

Wire-line subscribers 1,970,644

Internet subscribers^ 18,930,000

Post offices 5,067(2)

Tele density (in%) 121.61

No. of GPs in Phase-I 977

Cables laid (km) 830

GPs for which cable laid 1,129

No. of GPs Lit 1,129

Telecom Infrastructure (As of February 2018) Performance status of Bharat Net Project

(As of April 2018)

Note: ^ - data upto December 2017

Page 21: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 21

PHYSICAL INFRASTRUCTURE – URBAN

DEVELOPMENT

The Kerala urban area comprises of five Municipal Corporations and 60 Municipalities. 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. The project focuses on urban infrastructure improvement, community upgrading, local government infrastructure development and

capacity building, and implementation assistance.

Major infrastructure projects such as Kannur Air Port, GAIL Pipeline, Kochi-Edamon Electric line and Bypasses at Kollam and Alappuzha will be

inaugurated in 2018-19.

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 smart cities, 9 cities of Kerala have also been selected for infrastructure development under the Atal Mission for Rejuvenation and

Urban Transformation (AMRUT) scheme. As of April 2018, Rs 2,359.38 crore (US$ 366.08 million) has been allocated to Kerala under the

scheme.

Source: JNNURM, Ministry of Urban Development, State Budget 2016-17, 2017-18, Business Standard

Projects & Programmes Cumulative expenditure (US$

million)*

Urban Transport Improvement 22.15

Solid Waste Management Project 4.23

Water Supply 14.50

Sewage and Sanitation 21.97

Community Development Fund 11.12

Note*- as on August 31 2017

Cities Area (sq. km)

Kochi 94.88

Kollam 58.18

Kozhikode 128

Thiruvananthapuram 2,192

Thrissur 101.4

Alappuzha 1,414

Palakkad 1,363

Guruvayur 29.66

Kannur 2,961

List of cities in Kerala covered under AMRUT

Page 22: KERALA - IBEF

KERALA

SOCIAL

INFRASTRUCTURE

Page 23: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 23

SOCIAL INFRASTRUCTURE – EDUCATION

Kerala has the highest literacy rate among all states in the country.

As of 2016, the state has a literacy rate of 94.57 per cent; male &

female literacy rates stood at 96.61 per cent & 92.52 per cent,

respectively.

Kerala has 3,021 higher secondary schools as of 2016. Of these,

1,162 (38.46 per cent) were government schools, 1,406 (46.54 per

cent) aided schools & the remaining 453 (15 per cent) unaided

schools.

As per budget 2018-19, 45,000 hi-tech class rooms and IT labs will

be established in 4,775 schools. The digitalisation will be completed

in 3 phases with 20,000 class rooms being completed before the end

of February, 10,000 class rooms in March and remaining 15,000

class rooms in the months of April – May.

In Budget 2018-19 US$ 5.10 million is allocated for ‘Kerala

Infrastructure and Technology for Education’ which is heading the

digitalisation programme.

Source: State Budget 2017-18, (1) 2016-17, Converted 1USD=64.74Rs, Economic Review of Kerala, Economic Survey 2016-17

Schools 12,981

Universities 14

Engineering institutions 183

Arts and science colleges 213

Polytechnics 51

Sub sectors Budget 2018-19 (US$ million)

School education 149.83

Higher education 121.87

Technical education 38.31

Total 3,170.82

Educational infrastructure (2016)

Nature of schools

(2016-17P)

Student strength

(in million)

Share of total

student strength

(%)

Government 1.12 30.42

Government-aided 2.15 58.27

Unaided 0.41 11.30

Total 3.70 100.0

P: Provisional

Page 24: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 24

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.

As per budget 2018-19, an amount of Rs 837 crore (US$ 129.87 million) has been allocated for National Health Mission . State share for the

said mission is Rs 335 crore (US$ 51.98 million).

Note: (1)Per thousand persons, (2)Per thousand live births

Birth rate(1)

14.3

Death rate(1)

7.6

Infant mortality rate(2)

10

Primary health centres 955

Sub-centres 5,855

Community health centres 233

District hospitals 58

Sub – District Hospitals 371

Source: Economic Review of Kerala, 2017, State Budget 2016-17, 2017-18, NHRM, Sample Registration System (SRS)

Health indicators (2017)

Male 71.4

Female 76.3

Life expectancy at birth (years) (2014-15)

Health infrastructure (as of June 2018)

Page 25: KERALA - IBEF

KERALA

INDUSTRIAL

INFRASTRUCTURE

Page 26: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 26

INDUSTRIAL INFRASTRUCTURE … (1/2)

Infrastructure Project description

Technopark

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.

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 98.25 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: http://www.technopark.org/ , sezindia.nic.in

Page 27: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 27

INDUSTRIAL INFRASTRUCTURE – INDUSTRIAL

CLUSTERS … (2/2)

District Industries

Kannur Handlooms, power looms, beedi

Alappuzha Coir products

Idukki Agriculture and forest based

Thiruvananthapuram Handlooms, IT

Thrissur Power looms, handlooms, textile, timber, tile, canning

Palakkad Power looms, sericulture

Kollam Minerals and mining

Kozhikode Rubber

Wayanad Minerals and mining

Kasargod Minerals and mining

Kottayam Rubber, food products, engineering

Ernakulam IT

Page 28: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 28

SPECIAL ECONOMIC ZONES (SEZ) … (1/3)

Source: Ministry of Commerce & Industry, Government of India,

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

Electronics

Technology Park

KINFRA

Techno Park SEZ - I

Technopark

Pallipuram

Techno Park SEZ - II

KINFRA, Kakkancherry

KSITI, Pallipuram

KSITI, Purakkad

Kerala Industrial Infrastructure Development Corporation Limited (KINFRA)

KSITI, Kasargod

Kerala State

Information

Technology

Infrastructure Limited

(KSITI), Kannur

Hindustan News Print

Limited

KSITI, Kollam

Page 29: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 29

Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone

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

SPECIAL ECONOMIC ZONES (SEZ) … (2/3)

Page 30: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 30

Some of formally approved SEZs in Kerala

Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone

Name/Developer Location Primary industry

Cochin Port Trust Vallarpadam Port-based

Cochin Port Trust Puthuvypeen, Ernakulam Port-based

KINFRA Kazhakoottam,

Thiruvananthapuram Electronics Industries

Smart City (Kochi) Infrastructure Pvt Ltd Kakkanad, Ernakulam IT/ITeS

Kerala State Information Technology Infrastructure Ltd (KSITIL) Pantheerankavu

and Nellikode, Kozhikode IT/ITeS

Infoparks, Kerala Kunnathunad, Ernakulam IT/ITeS

Cochin International Airport Ltd Ernakulam Airport-based

Under SEZ Act, 2005, Kerala has 29 formally approved SEZs, 25 notified SEZs and 19 exporting SEZs.

SPECIAL ECONOMIC ZONES (SEZ) … (3/3)

Page 31: KERALA - IBEF

KERALA

KEY SECTORS

Agriculture and Allied Sectors

Coir and Coir Products

IT and Electronics

Tourism

Fishery

Page 32: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 32

KEY SECTORS – AGRICULTURAL AND ALLIED

SECTORS

Kerala is one of the leading pepper and rubber producers in the

country. Kerala is the leader in rubber production in the country.

State accounted for about 65.94 per cent share in the total natural

rubber production in 2016-17. Rubber production in Kerala stood at

540.4 thousand MT during 2016-17. The production of natural

rubber in Kerala was 455 thousand MT in 2016-17.

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 a lion’s share in India’s

production. Apart from pepper, other spices produced in the state

include ginger, cardamom, nutmeg, tamarind, etc.

As per the Budget 2018-19, government has allocated funds worth

US$ 1.70 million for cultivation of pepper in the state.

During 2017-18, tea production Kerala stood at 63.88 million KG.

As of April 2018, tea exports from the state were 14.5 thousand

tonnes.

Source: Department of Economics and Statistics, Kerala, Department of Agriculture Cooperation And Farmers Welfare

Crop Annual production – 2017-18 (‘000 MT)

Spice* 143.53 Total food

grains^ 450.3

Fruits* 2,493.90 Rice** 418.7

Plantation* 5,343.40 Pulses** 1.0

Mango (P) 397.82 Nutmeg^ 14.19

Grapes^ 15.50 Vegetables* 2,010.78

Pepper^ 30.47 Cocoa^ 7.15

Note: * - 1st Advance Estimates, * *- 2nd Advance Estimates, ^ - production 2016-17, P – Provisional

Page 33: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 33

KEY SECTORS – COIR AND COIR PRODUCTS

Kerala accounts for 85 per cent 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. As of March

2017, there are 1,002 coir co-operative societies in Kerala.

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 2018-19, US$ 32.59

million is allocated for the coir sector.

Coir pith and coir fibre are the major contributors in export of coir

products with over 80 per cent share. China is the major customer for

India’s coir products with 28.6 per cent share in value and 39 per

cent share in volume.

Source: Economic Review of Kerala, 2014-15, Government of Kerala, Coir Board, News articles, State Budget 2017-18

Exports of Coir and Coir products

Year Export (US$ million)

2014-15 102.98

2015-16 63.90

2016-17 40.58

Page 34: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 34

KEY SECTORS – IT AND ELECTRONICS … (1/2)

Source: Kerala IT Policy 2012, Economic Review of Kerala 2014-15, State Annual Plan, sezindia.nic.in, State budget 2017-18, Business Standard

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. Kerala possesses a cost-effective and

highly skilled human resource base with the lowest attrition rate (less

than 5 per cent). Around 11 per cent of the national IT pool is

contributed by skilled human resources from Kerala. The state also has

ample availability of skilled and semi-skilled workers for the electronics

industry.

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.

The state has a techno park in Thiruvananthapuram which has been

instrumental in attracting global electronics manufacturers, an info park

in Kochi, and a cyber park in Kozhikode As per ASSOCHAM, Kerala

ranked 3rd in attracting the highest total investments in IT sector worth

US$0.33 millon among all Indian states. Kerala also has a strong e-

governance infrastructure and is a leading state in e-governance.

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.

Export and investment from IT/ITES CSEZs (US$

million)

2014-15 2015-16 2016-17

Exports 657.84 696.70 1,085.46

Investment 232.24 232.24 262.27

Page 35: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 35

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.

Collabera

Traco Cable Company Limited commenced operations in 1964. 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. Traco Cable Co Ltd

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.

Transformers and

Electricals Kerala Ltd

(TELK)

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.

Kerala State Electronics

Development Corp

(Keltron)

Source: Company website and annual report

KEY SECTORS – IT AND ELECTRONICS … (2/2)

Page 36: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 36

KEY SECTORS – TOURISM

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 2018-19, US$ 6.18 million is allocated for various tourism institutions and Muziris Heritage Project and the Thalassery,

Alappuzha spice route are being implemented.

Under the State Budget 2018-19, US$ 12.67 million is allocated for Tourism marketing and US$ 4.05 million for Kerala Tourism Development

Corporation, Kerala Tourism Infrastructure Ltd, Bekal Resort Development Corporation, District Tourism Promotion Councils etc.

Source: Economic Review of Kerala, 2014-15, 2016-17, State Budget 2016-17, 2017-18

Domestic tourist arrivals in Kerala (in million)

9.4 10.1

10.9 11.7

12.5 13.2

14.7

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2011 2012 2013 2014 2015 2016 2017

Foreign tourist arrivals in Kerala (in million)

0.73 0.79

0.86 0.92

0.98 1.04

1.09

0.0

0.2

0.4

0.6

0.8

1.0

1.2

2011 2012 2013 2014 2015 2016 2017

Page 37: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 37

KEY SECTORS – 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. Kochi &

Neendakara are the two major fishing harbours for mechanized

sector and the Thankasserry fishing harbour is the only one for the

traditional sector.

The state government has allocated US$ 92.68 million for fisheries

sector and coastal area development under annual budget 2018-19.

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.

In April 2018, Fish Farmers Development Agency for Aquaculture

Development in Kerala will be implementing umbrella project

‘Development of Inland Fisheries’ worth Rs 69.90 core (US$ 1.08

million) launched by Fisheries Department .

Total fish production in Kerala (in million tonnes)

0.6

78

0.6

77

0.6

86

0.6

87

0.6

81

0.6

93

0.6

8

0.7

08

0.6

32

0.7

30

0.6

6

0.58

0.6

0.62

0.64

0.66

0.68

0.7

0.72

0.74

200

6-0

7

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7(P

)

Source: Economic Review of Kerala, 2015-16, 2016, Department of Animal Husbandry, Dairying and Fisheries, Annual Budget 2016-17, 2017-18 Note: P - Provisional

Page 38: KERALA - IBEF

KERALA

KEY PROCEDURES &

POLICIES

Page 39: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 39

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.

State Board Chief

Secretary

District Boards District

Collector

Industrial Area

Board

An officer not

below the rank

of District

Collector

SWM structure in Kerala

Source: KSIDC

Page 40: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 40

KEY INVESTMENT PROMOTION OFFICES … (1/2)

Agency Description

Kerala Industrial Infrastructure Development

Corporation

(KINFRA)

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.

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.

Page 41: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 41

KEY INVESTMENT PROMOTION OFFICES … (2/2)

Agency Description

Small Industries Development Corporation

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.

Kerala State Industrial Development

Corporation (KSIDC): the single-window

clearance and monitoring agency

Purpose:

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.

Page 42: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 42

CONTACT LIST … (1/2)

Agency Contact information

Directorate of Industries and Commerce

Vikas Bhavan P O Thiruvananthapuram

Kerala-695 033

Phone: 91-471-2302 774

Fax: 91-471-2305 493

E-mail: [email protected]

Kerala State Industrial Development

Corporation Limited

(KSIDC)

T C XI/266, Keston Road, Kowdiar,

Thiruvananthapuram-695 003

Phone: 91-471-2318 922

Fax: 91-471-2315 893

E-mail: [email protected]

KITCO Limited

P B No 4407, Puthiya Road,

NH Bypass, Vennala, Cochin-682 028

Phone: 91-484 -4129 000 / 2805 033

Fax: 91-484 -2805 066

E-mail: [email protected]

Kerala Industrial Infrastructure Development

Corporation (KINFRA)

KINFRA HOUSE, TC 31/2312

Sasthamangalam, Thiruvananthapuram - 695 010

Phone: +91-471-2726 585

Fax: +91-471-2724 773

E-mail: [email protected]

Kerala Small Industries Development

Corporation

Housing Board Building, 6th floor, Santhi Nagar, P B No 50

Thiruvananthapuram- 695 001

Phone: 91-471-2330 401, 2330 413, 2330 818,

Fax: 91-471- 2330 904

E-mail: [email protected]

Page 43: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 43

KEY APPROVALS REQUIRED … (1/2)

Approvals and clearances required Department Estimated time

Incorporation of the company Registrar of Companies

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.

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

Page 44: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 44

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 2014-15, World Bank Group

Page 45: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 45

COST OF DOING BUSINESS IN KERALA

Cost parameter Cost estimate Source

Industrial land (per sq m) US$ 33–190 (Cochin) Industry sources

Five-star hotel US$ 120–300 per room per night Leading hotels in the state

Office space rent (per sq ft) US$ 0.6–3 per month Industry sources

Residential space rent (2,000 sq ft house) US$ 350–750 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: 5.5-6.9 cents (US)

Kerala State Electricity Regulatory Commission, as of

March 2015

Labour (minimum wages per day) US$ 6.8–15 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

Page 46: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 46

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

Target installed capacity of 2,500 MW by 2030.

Set up floating and off-shore generation units.

Make use of solar energy compulsory for industries; incentive to be provided for solar power

Kerala Solar Energy

Policy 2013

Read more

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 Technology

Startup Policy 2014

Page 47: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 47

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.

Kerala Small Hydro

Power Policy 2012 To harness green and clean natural resources in the state for environmental benefits and energy security.

Kerala IT Policy 2012 To plan, develop and market the state as the most preferred IT/ITeS investment/business destination in India.

To make Kerala’s economy more export-oriented by granting various exemptions and concessions. SEZ Policy 2008

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 Kerala State Housing

Policy- 2011

Read more

Read more

Read more

Read more

Read more

Page 48: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 48

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.

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.

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

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. Kerala liquor policy

Read more

Read more

Read more

Read more

Page 49: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 49

ANNEXURE…(1/2) - SOURCES

Data Sources

GSDP (state) “Advanced Estimates” provided by Directorate of Economics and Statistics of Kerala

Per capita GSDP figures “Advanced Estimates” provided by Directorate of Economics and Statistics of Kerala

GSDP (India) “Advanced Estimates” provided by Directorate of Economics and Statistics of Kerala

Installed power capacity (MW) Central Electricity Authority, as of April 2018

Wireless subscribers (No) Telecom Regulatory Authority of India, as of March 2018

Internet subscribers (Mn) Telecom Regulatory Authority of India, as of December 2017

National highway length (km) NHAI & Roads and Building Department

Major and Minor Ports (No) India Ports Association

Airports (No) Airports Authority of India

Literacy rate (%) Census, 2011

Birth rate (per 1,000 population) SRS Bulletin September 2017

Cumulative FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, From April 2000 to December 2017

Operational PPP projects (No) DEA, Ministry of Finance, Government of India, April 2018

Notified SEZs (No) SEZ India, as of December 2017

Page 50: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 50

EXCHANGE RATES

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year INR INR Equivalent of one US$

2004–05 44.95

2005–06 44.28

2006–07 45.29

2007–08 40.24

2008–09 45.91

2009–10 47.42

2010–11 45.58

2011–12 47.95

2012–13 54.45

2013–14 60.50

2014-15 61.15

2015-16 65.46

2016-17 67.09

2017-18 64.45

Year INR Equivalent of one US$

2005 44.11

2006 45.33

2007 41.29

2008 43.42

2009 48.35

2010 45.74

2011 46.67

2012 53.49

2013 58.63

2014 61.03

2015 64.15

2016 67.21

2017 65.12

Source: Reserve bank of India, Average for the year

Page 51: KERALA - IBEF

For updated information, please visit www.ibef.org KERALA 51

DISCLAIMER

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca 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 Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a

substitute for professional advice.

Aranca 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 Aranca 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.